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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.

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:

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

Thank you,
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