File For Bankruptcy In Spokane

Filing For Bankruptcy In Spokane

Filing for Bankruptcy in Spokane, Riverfront Park Spokane

When the Bankruptcy Code was changed in 2006 many people believed it became more difficult to file for bankruptcy or that they would have to pay all their debts in full.  I still hear these reasons when people tell me how long they have suffered with crushing debt. The 2006 amendments did not make it more difficult to file for bankruptcy in Spokane or anywhere in Washington state for that matter.

Post 2006 Bankruptcy

After the changes in 2006, your income is compared to a state wide average, a process known as Means Testing.  If your income is below the state wide average you are generally still eligible to file for Chapter 7 which cancels most unsecured debts. 

State wide averaging includes the Seattle side of the state where incomes are higher. Most families in Spokane fall well below that state wide average. Today, the state wide average for a family of four in Washington is $84,786.00 per year.  If you make less than that amount, and your legitimate expenses exceed your income every month, you can still file for Chapter 7 bankruptcy and have most of your debts canceled.

What To Do

Protect yourself, your property and your paycheck and have some peace of mind. If you are in Spokane or close to Spokane, contact our office at 509.838.4458 or fill out our bankruptcy intake form on our website for a quick evaluation of your situation and let’s see if filing for bankruptcy is right for you or if there are other alternatives.

Civil Rights and Bankruptcy Laws

Bankruptcy is a Civic Right

Many people who come to me for advice on bankruptcy feel ashamed and question the morality of discharging debts.  Most people are very concerned about how they are perceived. Even in distress, disability, old age, or in situations no one could control they don’t want to be seen as someone who doesn’t pay their debts. But Bankruptcy is your right.

We the People US Constitution

What they may not know is that the United States Constitution specifically instructs Congress to make bankruptcy laws.

Section. 8.

The Congress shall have Power  . . .;

To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

Civic Rights Free Citizens form Oppression

This is an important civil right because the practice at the time of the American Revolution was to put honest debtors who couldn’t pay into prison, until they or their families could buy their freedom.  The United States of America was established to free its citizens of many forms of oppression, including debtors’ prisons.

Congress has established and maintained uniform bankruptcy laws, including the current Bankruptcy Code, adopted in the mid 80’s and last significantly amended in 2006.  The over-arching policy of the law is stated by Congress as giving debtors a “fresh start” and creditors an “even playing field.”

Lenders, especially credit card companies, take the certainty of bankruptcies into account in setting interest rates. Once a bankruptcy is filed, the debtor becomes a consumer again who buys goods and pays taxes and is a benefit to the economy. The bankruptcy laws therefore, promote the social goals of helping honest debtors out of poverty, preventing homelessness and creating a productive employed citizenry.

Each case of bankruptcy has its own unique considerations, but for the average citizen overwhelmed by matters out of his or her control, it is a basic civil right.  Contact a knowledgeable bankruptcy attorney to discuss your case at www.stevenschneiderlaw.com.