Many people are afraid if they file bankruptcy (especially chapter 7 bankruptcy) that they will lose everything they have. They fear that they would put their home, car, cash and all other assets at risk if they go into bankruptcy.
Fortunately, it is very rare for people who go through bankruptcy in Washington to lose any assets. Most personal assets are completely exempt (protected) in bankruptcy if the case if filed correctly. This means you will most likely be able to keep everything you own and still discharge all or most of your debt in a Washington chapter 7 bankruptcy filing.
Your attorney should be able to tell you at your initial consultation if you have any assets that could be at risk in a bankruptcy. If you are one of the rare people that could lose something in a bankruptcy the attorney should be able to let you know of the risk. Also, if you have any potential assets at risk an experienced bankruptcy attorney can discuss options other than chapter 7 bankruptcy (debt negotiation, Chapter 13, debt settlement, etc).
Or, a good attorney can discuss “pre-bankruptcy planning” – strategies to dispose of assets prior to filing a bankruptcy. This can be a very, very tricky area of the law. If you do need any pre-bankruptcy planning you will want an attorney who knows Washington bankruptcy law and has substantial experience handling pre-bankruptcy planning cases. Essentially you can’t just give away an unprotected asset on the eve of bankruptcy – that could get you in trouble. But, sometimes you can turn unprotected assets into exempt/protected assets prior to filing which may put you in the best position if you file for bankruptcy in Washington.
I have personally counseled thousands of debtors, many of which have some pre-bankruptcy planning to do before filing. I understand what a debtor can do within the bounds of the law and how to put you in the best possible position if you decide to file for bankruptcy. For a free consultation in our Vancouver, WA bankruptcy office please call 1-360-213-2722. You may also contact us by filling out the contact form on our free consultation page.
