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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Whats the deal with the new bankruptcy law Do I have to liquidate

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What's the deal with the new bankruptcy law? Do I have to liquidate all of my assets if I declare bankruptcy under Chapter 7 or can I protect my home and cars like under the old law? Or is Chapter 13 a better option if I want to keep from liquidating my assets? obiviously I'm not young anymore and being married still supporting a son whose having difficulty breaking into the job market gives me more of a need to salvage what I can and limit the need to start over as it were.
Hello,

What you retain in a bankruptcy depends upon the State that you reside in and the chapter bankruptcy that you file. I will explain for Washington State.


As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.



A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.



A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.


Here are the exemptions for Washington:
http://www.bankruptcyinformation.com/WA_exemp.htm



Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER
Ellen and other Bankruptcy Law Specialists are ready to help you