Getting Started

• You must complete a pre-bankruptcy credit counseling session with a federally approved agency before submitting any paperwork, notes the United States Bankruptcy Court Western District of Washington. Once you complete this session, you or an attorney can fill out bankruptcy filing papers; the information required includes your income figures, information about any assets, full information about all debts and responses to questions such as whether you've filed bankruptcy before.
  
  

Choosing a Bankruptcy Type

• Chapter 7 allows permanent forgiveness of most types of debts, but comes along with an income qualification process. As of 2011, a single Washington state resident could earn up to $51,344 a year and automatically qualify to declare Chapter 7. Families of three could earn up to $72,533 annually. Those earning more than these income figures must either prove through a federally designed means testing formula that they cannot reasonably repay debts and support their families or partially repay their obligations under Chapter 13.
  
  

Asset Considerations

• You risk losing at least some assets when you file bankruptcy in Washington, especially Chapter 7, warns the Bankruptcy Action website. As of 2011, Washington state residents can preserve up to $125,000 in real estate equity regardless of bankruptcy status. Other asset exemptions include $2,700 of household goods, $2,000 of general personal property, $2,500 of motor vehicle equity and up to $100 in cash or bank accounts.
  
  

Ineligible Debts

• Some types of debts cannot be included in your bankruptcy case. Court fines, legal damages resulting from criminal acts such as drunken driving or fraud, debts incurred right before filing bankruptcy and child support and alimony are all ineligible for bankruptcy relief. Back tax bills are only eligible if they were incurred more than three years ago. In almost all cases, federally issued student loans are also ineligible for bankruptcy debt relief. Rare exceptions may be made if a Washington bankruptcy judge accepts your claims of permanent disability or your college has since closed.