Washington Bankruptcy

Bankruptcy in Washington is a legal process through which individuals can address overwhelming debts and seek relief. Although bankruptcy is governed by federal law, filers can make a choice between using the state exemptions or the federal exemptions listed under 11 U.S.C. § 522(d). This decision plays a major role in determining what a filer keeps, including home equity, personal assets, and vehicles.

How to File Bankruptcy in Washington

A filer must complete a credit counseling course within the 180 days before filing to help assess whether bankruptcy is an appropriate option. If the course indicates that proceeding with bankruptcy may be the next step, the debtor needs to gather key financial documents that outline their overall financial situation.

Because each bankruptcy chapter operates differently and may affect how a filer's property is treated, individuals must determine which chapter best fits their financial circumstances. After selecting a chapter, the filer may review both the federal and state exemption schemes and choose the set they believe may offer the strongest protection for their property.

Depending on the court’s preferred method for filing, the filer may either submit the petition electronically or in person at the courthouse. Along with the completed official bankruptcy forms, the filer must include the filing fees and the certificate issued after completing the credit counseling course. Typically, Chapter 7 bankruptcy costs $338, while Chapter 13 costs $313 to file.

After filing, the filer is required to attend the 341 meeting of creditors with any government-issued ID and trustee-requested documents. In addition, they must also take a debtor education course and respond to court notices until a discharge is granted or the repayment plan is complete.

Washington Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Bankruptcy comes in different forms, and each chapter offers a different way for individuals or businesses to deal with overwhelming debt:

• Chapter 7 (liquidation): This is the type of bankruptcy where a trustee may sell non-exempt property to pay creditors, and most unsecured debts are discharged within a few months.
• Chapter 13 (repayment): This bankruptcy type provides individuals with a reorganization option that allows them to keep their property and repay part of their debts through a three to five- year court approved plan.
• Chapter 11 (reorganization): By filing for Chapter 11 bankruptcy, businesses and individuals with more complex debt situations may reorganize their financial obligations while continuing their regular operations.

Steps in Filing for Bankruptcy in Washington

Below is a step-by-step outline of the bankruptcy filing process in Washington:

• Complete a pre-filing credit counseling course
• Gather key financial documents
• Choose the right bankruptcy chapter
• Review exemption schemes
• File the petition
• Attend the 341 meeting of creditors
• Complete debtor education course
• Respond to court notices
• Receive discharge or complete repayment plan

Washington Bankruptcy Courts & Record Access

Washington is served by two federal bankruptcy courts: the U.S. Bankruptcy Court for the Western District of Washington and the U.S. Bankruptcy Court for the Eastern District of Washington.

Western District of Washington — This federal court serves the region located west of the Cascade Mountains, extending from the Oregon border to the Canadian border. Its courthouses are located in:

• Seattle Division

• Tacoma Division

Eastern District of Washington — This district handles bankruptcy cases for central and eastern counties, including Spokane, Walla Walla, and Yakima. Its courthouses are located at:

• Spokane

• Yakima

• Richland

Record Access

To locate Washington bankruptcy records through the Public Access to Court Electronic Records (PACER) system, create an account and conduct your search by case number, attorney’s name, debtor’s name, and district location. It typically costs $0.10 per page to view most documents, and the charge is capped at $3 for any single document.

If you cannot find your desired records through the PACER system, you may request them from the courthouse where the case was heard. The Clerk of Court may ask you to pay a search and copy fee before releasing the documents.

Most older records are transferred to the National Archives and Records Administration. To locate these archived records, you may submit a request online or send a completed request form by mail.