Van Camp & Deissner Law Offices, 1707 W. Broadway Ave.,  Spokane, WA 99201

BANKRUPTCY Who can file? Many folks get in trouble with debts, often through no fault of their own. Bankruptcy can help, giving you a fresh start. Anyone can file bankruptcy, if they can't pay their creditors -- even if they have a lot of assets. There are two types of consumer bankruptcies that we handle: Chapter 7, available only if you do not have sufficient regular income to make some payment on your debts over 3 years; this form cannot save a house that is in arrears. It simply wipes out all thedebts. Chapter 13, where you make payments over 3 years, may be able to save a house in arrears on the mortgage. You will only qualify to do one form of bankruptcy or the other. Determining which one is tricky, so give us a call. Types of Bankruptcy: Official form 1002 Everyone who files must read the official form, part of which follows: NOTICE TO INDIVIDUAL CONSUMER DEBTOR The purpose of this notice is to acquaint you with the four chapters of the federal Bankruptcy Code under which you may file a bankruptcy petition. The bankruptcy law is complicated and not easily described. Therefore, you should seek the advice of an attorney to learn of your rights and responsibilities under the law should you decide to file a petition with the court. Court employees are prohibited from giving you legal advice. CHAPTER 7: Liquidation ($209 fee) 1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to p ay their existing debts. 2. Under chapter 7 a trustee takes possession of all your property. You may claim certain of your property as exempt under governing law. The trustee then liquidates the property and uses the proceeds to pay your creditors according to priorities of the Bankruptcy Code. 3. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, your discharge may be denied by the court, and the purpose for which you filed the bankruptcy petition will be defeated. 4. Even if you receive a discharge, there are some debts that are not discharged under the law. Therefore, you may still be responsible for such debts as certain taxes and student loans, alimony and support payments, criminal restitution and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs. 5. Under certain circumstances you may keep property that you have purchased subject to valid security interest. Your attorney can explain the options that are available to you. CHAPTER 13: Repayment of All or Part of the Debts of an Individual ($194 fee) 1. Chapter 13 is designed for individuals with regular income who are temporarily unable to pay their debts but would like to pay them in installments over a period of time. You are only eligible for chapter 13 if your debts to not exceed certain dollar amounts set forth in the Bankruptcy Code. 2. Under chapter 13 you must file a plan with the court to repay your creditors all or part of the money that you owe them, using your future earnings. Usually, the period allowed by the court to repay your debts is three years, but no more than five years. Your plan must be approved by the court before it can take effect. 3. Under chapter 13, unlike chapter 7, you may keep all your property, both exempt and non-exempt, as long as you continue to make payments under the plan. 4. After completion of payments under your plan, your debts are discharged except alimony and support payments, student loans, certain debts including criminal fines and restitution and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs, and long term secured obligations. What Happens once I decide to file? First you'll spend some quality time with Don Shaw, getting the information we need input into the computer to generate forms. You will meet with Dustin Deissner to determine which type of bankruptcy you qualify for, and what will happen with the plan.  Then we file the papers:  if all goes well, you will have to attend one meeting at the Federal COurthouse, and then you will be done except for making payments. What do I need? When you get to consult with us, we will need all your financial information including all creditors' names & addresses.  You might want to pull a credit report. We also need all your information about your earnings and all major transactions in the last couple of years. Plan on spending some time with Don Shaw to prepare the paperwork! Give us a call and we will be happy to discuss your options.

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