Chapter 7 Bankruptcy in the Tacoma and Olympia, WA, Area


Chapter 7 is a liquidation type bankruptcy. Subject to a debtor’s exemption rights and secured creditors’ interests, a Chapter 7 trustee is appointed to collect assets of the estate, reduce those assets to cash, and make distributions to creditors. Statutory exemptions are generous, and in many Chapter 7 cases, there are no assets for the Chapter 7 trustee to administer. If requirements have been met, the Court will grant a discharge releasing liability on eligible dischargeable debts. A number of debts cannot be discharged through a Chapter 7 bankruptcy. The Chapter 7 process in most no-asset cases typically takes three to four months from filing to discharge.

7 Common Reasons to File Chapter 7

  1. Debts are of a type that can be discharged through a Chapter 7
  2. To stop garnishment or other creditor collection action
  3. Assets do not appear to be at risk of administration to Chapter 7 trustee
  4. Already current on secured debts or able to promptly cure secured debt defaults
  5. Income would not be sufficient to fund a Chapter 13 repayment plan
  6. Chapter 13 debt limits exceeded
  7. Quick access to a fresh start