Best Bankruptcy & Debt Lawyers in Tacoma

About Bankruptcy & Debt Law in Tacoma, United States

Bankruptcy and debt law in Tacoma is governed by a combination of federal bankruptcy law and Washington state rules that affect what assets you can keep, how debts are repaid, and which debts can be discharged. All bankruptcy filings are handled in federal bankruptcy court - cases from Tacoma are heard in the Western District of Washington. People use bankruptcy to stop collection actions, halt foreclosures and wage garnishments, and obtain a fresh financial start when debts become unmanageable. Common filing options include Chapter 7 - liquidation of non-exempt assets to pay creditors - and Chapter 13 - a court-approved repayment plan that lets debtors keep property while repaying creditors over time.

Why You May Need a Lawyer

Bankruptcy has many procedural requirements and complex interactions with state laws, exemptions, tax obligations, and secured creditors. You may need a lawyer if you face one or more of the following situations:

- Foreclosure, repossession, or wage garnishment that you want to stop quickly.

- Substantial unsecured debts, such as credit cards and medical bills, where discharge may be possible but qualifications are unclear.

- Owning real estate, business interests, retirement accounts, or other assets where exemption choices matter.

- Recent transactions with family, business partners, or creditors that could be challenged by the trustee as fraudulent transfers.

- Ongoing litigation, tax debts, or child support obligations that may be non-dischargeable or require special handling.

- Needing help to prepare schedules, complete mandatory credit counseling, pass the means test, or represent you at the 341 meeting of creditors.

An experienced bankruptcy attorney can evaluate your financial situation, advise which chapter is likely best, protect exempt property, prepare and file pleadings correctly, negotiate with secured creditors, and represent you in court and at creditor meetings. They can also help avoid common mistakes that can lead to case dismissal or denied discharges.

Local Laws Overview

Key legal aspects to know when considering bankruptcy in Tacoma include the following:

- Federal bankruptcy law sets the basic rules for filing, dischargeable debts, timing, and court procedures. The U.S. Bankruptcy Code defines Chapters 7 and 13 and governs the federal process.

- Washington state statutes and court decisions determine certain exemptions and procedures that affect what property you can keep. Exemptions can protect items such as equity in your home, a portion of wages, retirement accounts, household goods, and tools of the trade. Exemption amounts and eligibility rules can change, so local guidance is important.

- Means test rules compare your household income to state median income for a household of your size to determine Chapter 7 eligibility. If your income is above the median, a more detailed analysis of monthly expenses applies.

- Some debts are typically non-dischargeable under federal law - for example, most domestic support obligations, many tax debts, and most student loans - but local facts and timing can affect dischargeability.

- When filing in Tacoma, cases go through the U.S. Bankruptcy Court for the Western District of Washington. The court follows local rules in addition to federal rules, and trustees assigned to Chapter 7 and Chapter 13 cases operate under the U.S. Trustee Program. Local trustees and judges can have consistent practices that affect deadlines, document formats, and courtroom procedures.

- If you live or do business in Tacoma, local priorities like property taxes, municipal liens, and local creditor practices can influence the outcome of your case, including whether a lien survives the bankruptcy.

- Washington has specific rules about reclaiming exemptions and about how long you must have lived in the state to use Washington exemptions. Residency timing may affect exemption choices and planning.

Frequently Asked Questions

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 generally involves liquidation of non-exempt assets by a trustee to pay creditors and results in a relatively quick discharge of qualifying debts. Chapter 13 involves a court-approved repayment plan over three to five years that lets you keep property while paying unsecured and secured creditors according to the plan. Chapter 7 is often chosen when disposable income is low and there are few assets at risk. Chapter 13 is commonly chosen to stop foreclosure and catch up mortgage arrears while keeping the home.

How do I know if I qualify for Chapter 7 in Tacoma?

Qualification for Chapter 7 depends on a federal means test that compares your current monthly income to the median income for a household of your size in Washington. If your income is below the median, you will likely qualify. If it is above, you must complete a more detailed analysis of allowable expenses and disposable income. Local counsel can help you prepare the means test and determine eligibility.

Can I keep my house or car if I file for bankruptcy?

Possibly. The ability to keep a house or car depends on equity, exemptions, and whether you can continue payments. In Chapter 7, exemptions may protect some or all equity in a home or vehicle. In Chapter 13, you can often keep the property by proposing a repayment plan that addresses arrears. Secured creditors retain rights in collateral, so keeping property usually requires staying current on secured debt or arranging payment through the bankruptcy process.

Will filing bankruptcy stop a foreclosure in Tacoma?

Yes - filing a bankruptcy petition triggers an automatic stay that immediately stops most collection actions, including foreclosure, while the stay remains in effect. In Chapter 13, you can often use the repayment plan to cure mortgage arrears and keep the home. In Chapter 7, the stay can give you time to negotiate or sell the property, but the trustee or lender may seek relief from the stay if the mortgage is significantly undersecured.

Which debts are not dischargeable in bankruptcy?

Certain debts are commonly non-dischargeable, including most child support and alimony, many tax debts depending on timing and type, student loans in most cases, debts incurred by fraud or certain willful misconduct, and criminal restitution. The specifics depend on federal law and case facts. Some tax and student loan debts may be dischargeable under narrow circumstances, but those cases require detailed analysis and often litigation.

How long does a bankruptcy case take in Tacoma?

Timing depends on the chapter filed. Chapter 7 cases are often resolved in about four to six months from filing to discharge, assuming no objections or complications. Chapter 13 cases last the duration of the repayment plan - typically three to five years - and the discharge comes after successful completion of the plan. Complex issues, adversary proceedings, or objections can extend timelines.

What are the immediate consequences of filing bankruptcy?

Immediate consequences include the automatic stay that halts most collection actions, the requirement to disclose all assets and liabilities under penalty of perjury, and public filing of your bankruptcy schedules. You will need to complete required credit counseling before filing and debtor education before receiving a discharge. Filing can affect your credit score, but many find bankruptcy a step toward rebuilding credit over time.

How much does it cost to file bankruptcy in Tacoma?

Costs include court filing fees and attorney fees. Filing fees are set by the federal courts and can change, and attorney fees vary by attorney and case complexity. Low-income filers may be able to pay filing fees in installments or request a fee waiver for Chapter 7 under limited conditions. Discuss fees and payment options with a bankruptcy attorney or legal aid provider.

Can a creditor still contact me after I file?

No - once the automatic stay is in place, creditors must stop most collection communications. If a creditor continues to contact you, that is a violation of the stay and may be a sanctionable act. Keep records of any continued contact and report it to your attorney or the court so the violation can be addressed.

Do I need to tell my spouse or business partner before filing?

If you are married and live together, you must list your spouse and household income on bankruptcy schedules if the debts are joint or state law requires inclusion. Spouses sometimes file jointly for benefits like lower combined attorney costs and a single case. For business owners, business debts and assets must be included if the business is a sole proprietorship. Partnerships and corporations cannot file personal bankruptcy but the business entity may file separately. Consult an attorney about the best strategy for spouses and businesses.

Additional Resources

When you need more information or practical help in Tacoma, consider contacting or researching the following resources and organizations for guidance, forms, or legal assistance:

- U.S. Bankruptcy Court for the Western District of Washington - local clerk and court procedures.

- U.S. Trustee Program - oversight of trustees and bankruptcy administration.

- Washington State Courts and state statutes - for exemption rules and state-specific guidance.

- Pierce County court clerk and local courthouse resources for filings and local procedures.

- Tacoma-Pierce County Bar Association and Washington State Bar Association - directories for local attorneys and referral services.

- Legal aid organizations and pro bono programs such as statewide legal aid clinics and nonprofit consumer counseling groups that provide low-cost or no-cost help.

- Nonprofit credit counseling agencies that provide the mandatory pre-filing credit counseling and post-filing debtor education required in bankruptcy.

- Local law libraries and self-help centers that provide forms and guidance on court procedures.

Next Steps

If you think bankruptcy may be right for you, follow these practical next steps:

- Gather financial documents - recent pay stubs, tax returns, bank statements, a list of creditors and account numbers, property deeds, and any collection notices.

- Complete court-approved credit counseling from an approved agency within the time frame required before filing.

- Schedule a consultation with a bankruptcy attorney to review options, run the means test, and discuss exemptions and local court practice. Ask about fees, what is included, and whether you qualify for legal aid or fee arrangements.

- If you proceed, your attorney will prepare and file the petition and schedules, which triggers the automatic stay and sets the case in motion. If you proceed pro se, ensure you fully understand federal and local rules and file accurate, complete documents.

- Attend the 341 meeting of creditors, comply with trustee requests, and complete the required debtor education before discharge.

Bankruptcy can be a powerful tool for relief, but its benefits and consequences vary with individual circumstances. Seek qualified local legal advice to make informed decisions and to ensure you meet all procedural and timing requirements.