Filing Chapter 13 Bankruptcy in Washington State

Whether you live in Tonasket, Tacoma or Walla Walla, Chapter 13 is a way you can get out from under an overwhelming debt load. In Chapter 13, you spend three or five years devoting your disposable income -- money you don't need to live on -- to paying off your debts. At the end of that time, most of your remaining debt will be discharged, or wiped out. Some debts, such as school loans, mortgages and recent taxes cannot be discharged, but Chapter 13 will leave you with more money available to pay them.

• 1

  Make sure you qualify to file Chapter 13. Your debts and your income must both be below the limit set by the bankruptcy laws, the U.S. Courts website states and you have to complete a credit-counseling course in the six months before you file. The U.S. Department of Justice has a list of approved counselors on its website.

• 2

  Locate the bankruptcy court for your part of Washington. The U.S. Courts website lists four Washington state bankruptcy courts, in Spokane, Yakima, Seattle and Tacoma.

• 3

  Download the Chapter 13 forms and instructions from the U.S. Courts website. File them with the court for your district, along with the filing fee and complete information about your income, assets, expenses and creditors. Don't omit anything: If the judge decides you're concealing pertinent information, she can reject your bankruptcy petition and leave you at the mercy of your creditors.

• 4

  Attend a creditor hearing overseen by a court-appointed bankruptcy trustee. During the hearing, the U.S. Courts state, you'll be placed under oath and the trustee and your creditors can ask you questions about your finances. After the hearing, unsecured creditors -- those who don't have a lien, or claim on property such as a house or a mortgage -- must file with the court if they want to be included in the payment plan.

• 5

  Begin making payments to the trustee, either biweekly or monthly, once the trustee approves the plan. if your income for the six months before you filed is below the Washington state median, you'll only have to make payments for three years; otherwise you'll get a five-year plan.