Going through a bankruptcy can put a lot of strain on the entire family. In addition to facing significant debts and needing to change your lifestyle, going through extreme changes such as the loss of home, cars and clothes can feel like too much to bear for many families.
If you are worried about the possessions that you may have to give up due to bankruptcy, it is important to understand how the law works in Washington. There are many ways that you can act to maximize the bankruptcy exemptions that you will be entitled to.
Choose the right type of bankruptcy for you
Every bankruptcy chapter is different, so you should consider how the different options will affect your financial situation. Generally speaking, Chapter 7 bankruptcy involves a high amount of asset liquidation, whereas Chapter 13 allows you to keep more property while embarking on a debt repayment plan.
File jointly with your spouse
If you file a joint bankruptcy with your spouse, you will likely be able to benefit from double the exemptions. However, before filing jointly, it is important to consider how this will enable you to benefit from debt discharges.
Understand Washington state exemptions
You should make sure that you understand how the Washington state bankruptcy exemptions allow you to keep your property. This will help you maximize the property that you keep.
Filing for bankruptcy is never an easy action to take. However, by preparing adequately and understanding the law, you will be able to get debt relief and improve the quality of life for you and your family.