Find Bankruptcy Lawyers Near You in Everett, WA

Typical costs for a bankruptcy lawyer in Everett, Washington include the federal filing fee and attorney fees. For a Chapter 7 case, the filing fee is $338, and attorney fees generally range from $1,200 to $2,500, making the total cost between $1,538 and $2,838. For a Chapter 13 case, the filing fee is $313, and attorney fees range from $3,000 to $5,000, for a total of $3,313 to $5,313. Many attorneys offer payment plans that allow you to pay fees in installments before filing, and some may accept credit cards.

Additional costs may include fees for mandatory credit counseling and debtor education courses, which typically cost $15 to $50 each. If you need to file additional motions or oppose creditor actions, attorney fees may increase. Some debtors with very low income may qualify for a waiver of the filing fee or for pro bono legal services through organizations like the Northwest Justice Project. This information is general and does not constitute legal advice; you should consult with a qualified bankruptcy attorney to discuss your specific financial situation and costs.

Bankruptcy law provides individuals and businesses in Everett, Washington a legal pathway to address overwhelming debt. The practice primarily involves three chapters of the United States Bankruptcy Code. Chapter 7, often called liquidation bankruptcy, allows individuals to discharge most unsecured debts like credit cards and medical bills in exchange for non-exempt assets being sold by a trustee. Chapter 13, known as reorganization bankruptcy, enables debtors with regular income to propose a three-to-five-year repayment plan to catch up on secured debts like mortgages or car loans while keeping their property. Chapter 11 is typically reserved for businesses seeking to restructure their debts and operations, though high-net-worth individuals may also qualify. For most Everett residents, the choice between Chapter 7 and Chapter 13 depends on their income level, asset value, and whether they have non-dischargeable debts such as recent taxes or child support arrears. Chapter 7 is generally appropriate for those with limited income and few assets, while Chapter 13 suits individuals who have a steady income but need time to repay past-due obligations.

Washington State has specific exemption laws that determine what property a debtor can keep in bankruptcy. Unlike some states, Washington does not allow debtors to choose between state and federal exemptions; debtors must use the Washington state exemptions exclusively. The Washington homestead exemption protects up to $125,000 of equity in a primary residence, or up to $200,000 if the debtor or their spouse is 60 years of age or older, or if the debtor is disabled. For vehicles, Washington allows a motor vehicle exemption of up to $3,250 in equity. The state also provides a wildcard exemption of up to $1,000 for any personal property, plus an additional $500 for each dependent, which can be applied to assets not covered by other exemptions. Other significant exemptions include up to $2,000 in household goods, $1,500 in wearing apparel, and unlimited amounts for tools of the trade up to $5,000. These exemptions are codified in the Revised Code of Washington (RCW) Title 6, specifically RCW 6.15.010 for homesteads and RCW 6.15.020 for personal property. Properly applying these exemptions is critical to ensuring that a debtor retains their essential assets during and after bankruptcy.

The means test is a key eligibility requirement for Chapter 7 bankruptcy in Everett. This test compares a debtor's current monthly income to the median income for a household of the same size in Washington State. As of 2024, the median annual income for a single-person household in Washington is approximately $67,000, for a two-person household about $84,000, for a three-person household around $98,000, and for a four-person household roughly $115,000. If a debtor's income is below the median, they automatically qualify for Chapter 7. If their income exceeds the median, they must complete a more detailed calculation of disposable income over the past six months, subtracting allowed living expenses based on IRS standards. If the resulting disposable income is less than $100 per month, the debtor presumes they qualify for Chapter 7. If disposable income exceeds $200 per month, a presumption of abuse arises, and the debtor may be required to file under Chapter 13 instead. For income between $100 and $200 per month, the amount is multiplied by 60, and if the total exceeds $10,000, the presumption of abuse applies. This test ensures that Chapter 7 relief is reserved for those who genuinely cannot repay their debts.

Filing for bankruptcy in Everett triggers an automatic stay, which is one of the most powerful protections available. The automatic stay goes into effect immediately upon filing and prohibits creditors from continuing collection activities, including phone calls, wage garnishments, foreclosure proceedings, repossession actions, and lawsuits. This stay remains in place throughout the bankruptcy case unless a creditor successfully petitions the court to lift it. The timeline from filing to discharge varies by chapter. For a Chapter 7 case, the process typically takes three to six months, with the discharge order issued about 60 to 90 days after the meeting of creditors, also known as the 341 meeting. For a Chapter 13 case, the repayment plan lasts 36 to 60 months, and the discharge is granted after all plan payments are completed. Before filing, debtors must complete a mandatory credit counseling course from an approved agency within 180 days prior to filing. After filing but before receiving a discharge, debtors must also complete a debtor education course. Both courses are available online or by phone and typically cost between $15 and $50 each. Failure to complete either course can result in the case being dismissed without a discharge.

The costs of bankruptcy in Everett include court filing fees and attorney fees. The federal filing fee for a Chapter 7 case is $338, and for a Chapter 13 case it is $313. These fees are set by statute and are non-refundable, though debtors may request to pay the fee in installments. Attorney fees in the Everett area vary widely based on the complexity of the case. For a straightforward Chapter 7 case, attorney fees typically range from $1,200 to $2,500, with the total cost including the filing fee falling between $1,538 and $2,838. For a Chapter 13 case, attorney fees are generally higher, ranging from $3,000 to $5,000, because the attorney must prepare a repayment plan and attend multiple hearings over several years. Many bankruptcy attorneys in Everett offer payment plans, allowing debtors to pay attorney fees in installments before the case is filed. For those with limited income, pro bono resources are available through organizations such as the Northwest Justice Project and the King County Bar Association's Neighborhood Legal Clinics, which may provide free or low-cost legal assistance. Additionally, some debtors may qualify for a waiver of the filing fee if their income is below 150% of the federal poverty guidelines.

Life after bankruptcy in Everett involves rebuilding credit and understanding the long-term impact. A Chapter 7 discharge remains on a credit report for 10 years from the filing date, while a Chapter 13 discharge remains for 7 years. However, the impact on credit scores diminishes over time, and many individuals see their scores improve within one to two years after discharge. Rebuilding credit strategies include obtaining a secured credit card, becoming an authorized user on a family member's account, and making all post-bankruptcy payments on time. It is also important to monitor credit reports for errors and to ensure that discharged debts are correctly listed as having a zero balance. Not all debts are dischargeable in bankruptcy. Student loans are generally not dischargeable unless the debtor can prove undue hardship through a separate adversary proceeding, which is difficult to win. Most tax debts are not dischargeable if they are less than three years old, if the tax return was filed late, or if the tax was assessed within 240 days of filing. Child support and alimony obligations are never dischargeable, and debts for personal injury caused by driving under the influence are also non-dischargeable. Understanding these limitations is essential for making informed decisions about bankruptcy.