Chapter 7      &     Chapter 13

Legal Aid & Services You Can Rely On Edmonds & Serving Lynnwood, WA

Legal Services

Kimberly J. MacLeod P.C. files Chapter 7 and Chapter 13 bankruptcies for our clients. Under current bankruptcy law, deciding the chapter of bankruptcy you qualify for and which type will best suit your needs is a complex process, so you should look for an experienced, caring bankruptcy lawyer with the knowledge to guide you.

Man signing a document

If you choose this law firm to help you, please feel free to download the client Questionnaire and Creditor Information documents included on the Home page. These documents include the financial, income, asset and creditor information this office will need you to supply so that we can assist you in:

  1. Determining if a Chapter 7 or Chapter 13 bankruptcy is the correct one for you, and
  2. Representing you in filing the bankruptcy that best suits your financial circumstances.

In general, filing either a Chapter 7 or Chapter 13 bankruptcy will:

  • Eliminate stress related to financial matters
  • Provide you with immediate relief from collection efforts against you, including creditor calls, letters, lawsuits, and garnishments
  • End creditor harassment
Bankruptcy consultation with Lawyer

Understanding Chapter 7 and Chapter 13

Two primary options are available to individuals and families facing unmanageable debt: Chapter 7 and Chapter 13. Each serves a distinct purpose, and the right choice depends on your income, assets, and financial goals. Kim MacLeod works with each client individually to identify which path may best protect their interests.

Chapter 7: A Path to a Fresh Start

Chapter 7 is often referred to as a liquidation bankruptcy filing. It may allow eligible filers to discharge most unsecured debts, including credit card balances, medical bills, and personal loans. The process is typically faster than Chapter 13, and Washington State exemptions can often allow filers to retain most, if not all, of their property. To qualify, filers generally must pass a means test that evaluates income relative to household size and state median income levels.


Chapter 7 may be appropriate when:

  ▸ Your income does not cover your monthly unsecured debt obligations.

   ▸ You do not have significant non-exempt assets at risk.

   ▸ You are not behind on a mortgage you wish to keep current and save from foreclosure.

   ▸ You need relief from creditor calls, wage garnishment, or collection actions as quickly as possible.

 

Chapter 13: Restructure and Protect What You Own

Chapter 13 offers a structured repayment plan lasting three to five years and may be the better option when you have a home to protect or assets that exceed available exemptions. It can stop foreclosure proceedings and allow you to catch up on missed mortgage payments over time. Unlike Chapter 7, Chapter 13 does not require liquidating assets, making it a common choice for homeowners and small business owners.


Chapter 13 may work well when:



  ▸ You are behind on mortgage payments and want to prevent foreclosure.

   ▸ Your income exceeds the Chapter 7 means test threshold.

   ▸ You have non-exempt assets you want to protect.

   ▸ You owe priority debts, such as back taxes or domestic support obligations, that cannot be discharged under Chapter 7.

 

Which Type of Filing Is Right for You?

The answer depends on a careful review of your specific financial picture. Factors such as the types of debts you carry, the property you own, your income history, and your long-term goals all influence which chapter may be most appropriate. No two bankruptcy cases are alike, and a thorough evaluation is essential before any filing decision is made.

Kim MacLeod reviews each client's full financial situation before making any recommendation. You can learn more about Kim's approach on the Why Choose Kim page or explore the details of the repayment plan process on the Chapter 13 Bankruptcy page.



To discuss whether Chapter 7 or Chapter 13 may be right for your circumstances, contact Kimberly J. MacLeod, P.C. for a free initial consultation. Call 425-673-6300 today.

Contact Kim for a free initial consultation on bankruptcy law options.

You may also call 425-673-6300 to schedule an appointment.