Filing Bankruptcy In Washington State

Learn How Filing Bankruptcy In Washington State Can Affect Your Credit And What All Of Your Options Are

Credit counseling is now the law

The 2005 Bankruptcy Act now requires everyone who files for bankruptcy to undergo credit counseling within six months before filing and to complete a financial management instructional course after filing bankruptcy. The cost for filing a Chapter 7 bankruptcy is $274. This fee may not be waived but you may be able to pay it in installments. The fee of $189 for a Chapter 13 bankruptcy can not be waived.

Will filing for bankruptcy affect your credit?

Bankruptcy will probably not make things any worse. The fact that you've filed a bankruptcy can appear on your credit record for ten years; however bankruptcy wipes out old debts. This means you're likely to be in a better financial position. You may even be able to get new credit. To begin with, you might use a bank or debit card to perform activities for which you normally would use a credit card. You may also get a secured credit card which is backed by your own bank account.

Public utilities cannot, under Washington state law, refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service.

Did you lose your driver's license?

If you lost your license solely because you couldn't pay court-ordered damages caused in an accident, bankruptcy will actually allow you to get your license back.

If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt. Likewise, your spouse will still be liable for any joint debts.