Chapter 7 vs. Chapter 13 in Central Washington: Which Fits Your Situation?

If you’re struggling to keep up with bills in Moses Lake, Wenatchee, or the surrounding Central Washington communities, you may be considering bankruptcy as a way to find relief. The two most common options for individuals are Chapter 7 and Chapter 13 bankruptcy. While both can provide a path forward, they work very differently—and choosing the right one depends on your unique circumstances.

What Is Chapter 7 Bankruptcy?

Often referred to as a “liquidation bankruptcy,” Chapter 7 is designed to give people a fresh start by discharging most unsecured debts. This includes:

• Credit cards
• Medical bills
• Personal loans

In most cases, you can keep essentials like your home, car, or personal belongings if they fall under Washington’s bankruptcy exemptions. Chapter 7 typically takes only a few months from filing to discharge, making it the faster route for those who qualify.

Best suited for:

• Those overwhelmed by credit cards, medical bills, repossessions and collections
• Those facing bank account and wage garnishments

Frankly, Chapter 7 is suitable for most people, even those with good-paying jobs and pensions – much has changed legally in the past few years to ease Chapter 7 qualification standards. Nowadays, even many higher-income earners can still qualify for Chapter 7 to wipe out debts. Surprisingly, people with tremendous amounts of home equity and valuable vehicles/RVs can still file for Chapter 7 and keep their home/vehicles/RVs.

What Is Chapter 13 Bankruptcy?

Chapter 13 is often called a “wage earner’s plan.” Instead of wiping away debt right away, it creates a 3- to 5-year repayment plan that allows you to catch up on missed payments while keeping your assets.

This can be especially helpful if you’re behind on:

• Mortgage payments and facing foreclosure
• Car loans with the threat of repossession
• Tax debts that need to be repaid

Chapter 13 stops creditor actions immediately through the automatic stay, giving you breathing room to reorganize your finances.

Best suited for:

• Homeowners who want to save their house from foreclosure
• Individuals with steady income who can afford monthly payments
• People with debts that cannot be fully discharged in Chapter 7

Which Chapter Is Right for You?

Every financial situation is different. The right choice depends on factors like your income, the type of debts you owe, and whether keeping property such as a home or vehicle is your top priority.

Mr. MaGee can help anyone living in Washington to file a Chapter 7 or Chapter 13 bankruptcy as both Chapter 7 and Chapter 13 offer powerful tools. The key is to carefully review your situation and understand what each option means for your future.

Take the First Step Toward Relief

Financial stress can feel overwhelming, but you don’t have to face it alone. At Central Washington Lawyers, PLLC, attorney James MaGee has helped many local residents take control of their debt and move forward with confidence.

📞 Call us today at 509-581-4090 to schedule a consultation and discuss whether Chapter 7 or Chapter 13 bankruptcy is the right solution for you.