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TYPES OF BANKRUPTCY
Chapter 7: Complete Liquidation - Allows the debtor to discharge most unsecured non-priority debts
while retaining exempt property such as a homestead. It can be used to reduce monthly payments
thereby increasing available income to pay monthly mortgage amounts. It usually takes 3 - 5 months after
filing for the discharge to be completed.
Chapter 13: Reorganization - Available to debtors with a certain income level. It allows a debtor to keep a
property and create a schedule of payments to cure the delinquent amounts owed on a mortgage over a
nd
period of 3-5 years. It also provides a mechanism to strip a 2 mortgage when there is no equity attached
to the mortgage and “cram down” secured debt on non-residential property.
Chapter 11: Reorganization – A Chapter 11 bankruptcy is for businesses and yields similar results to a
Chapter 13 bankruptcy. It is often utilized by business debtors who have too much debt to file a Chapter
13 bankruptcy. An attorney well versed in bankruptcy law should be consulted regarding a Chapter 11
bankruptcy.
Consult an attorney about your options. Information is also available at:
• Bankruptcy Court website: See links for “Filing Without an Attorney” and “Bankruptcy Basics.” at
https://www.uscourts.gov/services-forms/bankruptcy .
• Legal Information: www.washingtonlawhelp.org
• NJP CLEAR: 1-888-201-1014 (legal advice/referral for low-income residents outside King County)
• United Way 211: dial 2-1-1 (legal referrals for low-income King County residents)
• National Consumer Law Center: www.nclc.org
• Northwest Consumer Law Center: 206-805-1722 (legal referrals for low income Washington
residents)
How to find a lawyer licensed to practice law in Washington:
Washington State Bar Association: 1-800-945-8722 or www.wsba.org/ (lawyer directory)
Clark County King County
Southwest Washington Lawyer Referral Service King County Lawyer Referral Service
(360) 695-0599 (206) 267-7010
Kitsap County Lewis County
Kitsap County Lawyer Referral Service Lewis County Lawyer Referral Program
(360) 373-2426 (360) 748-0430
Pierce County Snohomish County
Tacoma-Pierce County Bar Lawyer Referral Snohomish County Bar Referral Service
(253) 383-3432 (425) 388-3018
Spokane County
Spokane County Bar’s Online Lawyer Referral
Service www.spokanebar.org/
The King County Bar Association sponsors two specialty legal clinics focused on bankruptcy and consumer
debt related issues: the downtown Debt Clinic in Belltown and the South Seattle Debt Clinic in South
Seattle. To make an appointment for either clinic, call (206) 267-7070 from 9 a.m. to noon, Tuesday -
Thursday. In order to increase the likelihood of being able to reserve a spot at either clinic, KCBA advises
to call as close to 9:00 a.m. on Tuesday as possible.
January 2020 | Page 53
