Generally, a Chapter 7 bankruptcy is based upon your income and expenses on a monthly basis. If, after you pay all of your necessary expenses, your remaining income is less than $100 per month you would be eligible for Chapter 7. We would advise you about the appropriateness of liquidation under Chapter 7 only after taking into account the extent of your assets.
If, after you pay all of your necessary expenses, your remaining income is more than $100 per month you would be eligible for Chapter 13. Other reasons for choosing Chapter 13 are the need for time to catch up on mortgage arrearages or property that exceeds exemption room.
Click here for work sheets Schedule ‘I’ & ‘J’ to calculate monthly income and expenses.
Exemptions:
Washington is one of the few states to allow choice between exemptions allowed by the State and those offered by federal law. Depending on your situation, one may be more advantageous than the other. For example, Washington exemptions allow a very generous $125,000 homestead exemption. The federal homestead exemption is currently $47,350 for a married couple. Click here for FEDERAL EXEMPTIONS and WASHINGTON STATE EXEMPTIONS.