What is Bankruptcy?



Attorney/Partner Brian Hanis
January 2013

Before diving into the world of bankruptcy, it is best to understand some basics about what it is. There are four types of bankruptcy. The most common bankruptcies, the one your friend or neighbor may have filed, are chapter 7 and chapter 13. So, what are they?

Chapter 7, which is the most common filing, is a liquidation case. Basically, when you file, you list all of your assets and all of your debts. In other words, you turn everything over to the court. After liquidation you receive a discharge, which is an order relieving you of any further liability on your debts, except those debts you are allowed to keep, for example a car payment because you want to keep the car.

Before thinking you lose everything in Bankruptcy, you are granted exemptions to apply towards your property. The property that is not exempted is liquidated. For example, each debtor, under federal exemptions, is granted a $3,450.00 exemption for equity in a vehicle. A very important one is retirement accounts. If they are IRS recognized, (ie. 401(k) or IRA’s) they can be 100% exempted. Before you wipe out your retirement to pay off debt, make sure that you are not ultimately going to file for bankruptcy relief. The purpose of these exemptions is to give you a fresh start by making sure you have some property when you come out of bankruptcy. Otherwise, you are simply going back into debt to by new property.

A Chaper 13 case is a plan payment case. The same process for your property in a chapter 7 is used in a chapter 13. The difference is that you will make a plan payment for a period of time, typically five A Chapter 13years. At the end of that period you are discharged and relieved of any unpaid listed debt, if you make all of the payments.

You may be asking why not just file chapter 7? The first thing to understand is that not everyone can qualify for chapter 7, while most can qualify for chapter 13. The Bankruptcy Code has established that those making above a certain gross income level must file chapter 13. This varies by location and depends on household size. If you make above that income level, you are considered to have expendable income that must be paid into a plan for a time period.

Now, some individuals have decided to voluntarily file for chapter 13. There are many reasons for doing this. For example, they filed a chapter 7 within a certain time period therefore they are not allowed to file again. Another may be someone has fallen behind in house payments. So, they use the chapter 13 as a way to catch up the payments and save the home. In this economy, some have even used it as a means to remove liens on their property under certain conditions, known as a lien strip.

Bankruptcy is an important decision but one that may be considered if you have fallen behind on debt and see no end in sight. Some fear bankruptcy as the end of their financial life. However, those making the right decisions after filing can rebuild their credit. Some have even bought homes again within a few years after filing.

Whatever the reasons, it is always good to discuss with a professional to see how bankruptcy can pertain to your specific situation.

Brian Hanis is a Bankruptcy Attorney with the Kent Law Firm of Hanis Irvine Prothero, PLLC and offers a FREE 30 minute bankruptcy consultation.
For more information call 253-520-5000 or email bhanis@HIPLawfirm.com

2013 Five Star Wealth Manager awarded to Mark Albertson

We are happy to announce that HIP Attorney, Mark Albertsonhas been named A 2013 Five Star Wealth Manager. Congratulations Mark on reaching a level of excellence achieved by fewer than 7 percent of the wealth managers in your area.

Mark’s selection is the result of a rigorous research process that included a regulatory and consumer complaint review, and an evaluation of objective criteria associated with wealth managers who provide quality services to their clients. Mark is being recognized by the largest and most widely published wealth manager award program in North America.

The upcoming April issue of Seattle Magazine will feature Mark Albertson as one of this year’s award recipients.

Mark Prothero panelist at symposium on death penalty

On November 30, 2012, HIP partner Mark Protherowas a panelist at a symposium on the death penalty sponsored by the King County Bar Association and held at the University of Washington School of Law. Several experts on various aspects of capital cases participated, including capital defense attorneys Carl Luer, Mark Laranaga, and Katherine Ross, former King county Prosecutor Chris Bayley, Snohomish County Prosecutor Mark Roe, former Whatcom County Superior Court Judge David Nichols, and Mishi Faruqee, campaign manager for “Safe and Just Alternatives” advocating for the elimination of the death penalty in Washington.

Some thoughts on the legalization of marijuana


On December 6, 2012, the State of Washington made history. Not just state history. Not just national history. I’m talking world history. Galactic history as far as I know. The people of our state say it’s no longer illegal for an adult to smoke pot. Just as Prohibition of alcohol was a failed social policy, we have now said the same is true for the prohibition of marijuana.

In December of 2009, I wrote an article about reducing costs in the criminal justice system (http://www.hiplawfirm.com/articles/Budget_Crisis_Part_2 ). I advocated ending the failed war on drugs for a fairer, more reasonable and cost effective approach. By passing Initiative 502 on election night, the people of our state took a giant step towards this goal by legalizing marijuana. It’s only the first step in what will be an evolving social policy issue with several twists and turns sure to come. On the part of pot users, some discretion is still in order.

“LEGAL” is qualified – Not everything to do with pot is legal. Like alcohol, you have to be 21. You can’t smoke it in public. If you do, you can receive a civil infraction. Outside of medical marijuana growers, you cannot grow it yourself. If over 21, you can have up to an ounce but nobody can legally sell or give it to you. And you can’t give it to anyone else. That could technically be a “delivery” which is different from “possession” and “delivery” of marijuana is still illegal. During the pre-election debate, anti-502 (but pro-legalization) folks complained that one would be guilty of a felony for passing a joint to their friend. While that is technically true, that has always been the case. And in my years of defense work, I never saw anyone charged with “delivery” of marijuana for passing a doobie. Now that the item being passed along is legal, I think the threat of a felony is beyond realism. But, clearly, a medical marijuana patient cannot legally obtain pot and then share with or “deliver” it to his or her friends. That is still illegal, even after yesterday’s historic change.

DUI marijuana – You cannot be operating a motor vehicle while high on marijuana. The police will still need probable cause to pull you over. But any traffic infraction will do, such as forgetting to signal a lane change or going 15 in a 40 mph zone. But now, just like a .08 limit with blood-alcohol, there is a per se limit of 5 nanograms (ng) of active THC in your blood. Some research has shown impairment in driving skills at those levels. This per se limit does not take into account an individual’s tolerance and is unfair for the medical marijuana patients who smoke frequently to relieve pain and other symptoms of their disease or treatment. But the limit had to be set at some amount. If further research shows that the 5ng level is too low, the legislature could make adjustments. To prevent medical marijuana patients from getting caught in the crossfire, an exemption to the 5ng per se limit should be carved into the law.

Besides potential driving impairment, to be on the safe side from a strictly legal standpoint, I would advise people not to smoke pot in their vehicles. The pungent aroma of some recently smoked Willie Nelson Purple Kush could reasonably lead to an officer’s suspicion and a blood test. A routine traffic stop could turn into a DUI, even if your driving wasn’t impaired.

The Feds – The most obvious legal issue is the conflict with federal law. It is true that the federal response is yet unknown. Will the feds swoop in and start arresting and charging Washington pot smokers with federal charges, even though the people of our state say it is legal here? I doubt it. I think it’s fair to assume the feds will continue to bust major grow operations, interstate transport and distribution, and major dealers acting in the void until licensing, regulation, and tax schemes are in place in a year. Hopefully, the feds will continue to leave simple possession alone and see how our social experiment evolves.

The feds have already demonstrated their acceptance of medical marijuana cooperatives and dispensaries that operate within the law. They aren’t just looking the other way. Several months ago, they came in and busted several Puget Sound area dispensaries that were allegedly distributing beyond the medical marijuana bounds. However, they left alone many more who were operating within Washington law, even though technically still illegal under federal law. On this point, members of the Kent City Council, please take note and revisit your ban. The feds won’t mind. Even less so now that we’ve legalized recreational use for adults.

From a legal standpoint, my advice is simple: Be smart. Don’t smoke it in your vehicle and don’t drive when you’re high. It’s only legal to possess if you’re 21 years old or older. Don’t smoke it in public. If you do, you can be fined.

The law will be evolving over the next several years, through the courts and legislatures of our state and country. We are progressing forward. If you want to get high, just be discrete. If you have any questions about the laws involving marijuana, contact a criminal defense lawyer.

Some people like chicken when they sit down to eat. Others prefer a steak.
Some put the pedal to the metal when they drive. Others will ride their brake.
Some like country music on their I-Pod. Others prefer reggae or rock.
Some like to listen to what other people say. Others just like to talk.
Some like road trips for their family vacations. Others prefer a cruise.
Some like their ganja to relax and mellow out. Others prefer their booze.
Some feared being busted with pot. Others thought the law was a joke.
The hypocrisy is now finally over. Adults can legally toke.

Mark Prothero Attorney at Law
Hanis Irvine Prothero, PLLC

Crash! Tips for dealing with an auto accident


The sound of metal crunching against metal is, unfortunately, a dismal sound most of us will hear at some point during our “driving careers”. There are no fast and easy solutions to the myriad of issues that can arise subsequent to the “crash”; however, this article will provide very general guidance on steps that individuals injured in accidents can take to make the inherently painful process as painless as possible.

Call 911
After any collision, no matter how small, call the police. Immediate assistance from emergency personnel is critical to assure that any injuries are appropriately handled. Furthermore, the police will investigate the circumstances surrounding the accident which enables you, the injured person, to have the best possible information available when making a claim.

When being questioned by emergency personnel, do not say that you are “fine” and do not refuse offered medical help, to do so may undermine a future claim. Provide only specific answers to questions asked by the police officers and resist the urge to go “on and on”. If you do not understand a question, DO NOT ANSWER IT.

Remain Calm
The aftermath of an accident can be unnerving. Even the smallest of collisions can feel horrific both emotionally and physically. In short, take a deep breath, relax and remain calm. Do not, for example, begin jabbering away to the other driver(s)/passengers about how the accident is “your fault”. In short, say as little as possible to everyone involved while fully cooperating, as set forth above, with emergency personnel.

Obtain Medical Treatment Immediately
If you are not transported by ambulance to a medical facility, go IMMEDIATELY to the emergency room for treatment. Ensure that you are fully checked out by medical personnel, including requesting X-rays of injured body parts. Follow up the day after the accident with your Primary Care Physician. Always tell your health care provider ALL symptoms you are experiencing; now is NOT the time to be stoic.

Cooperate with Your Insurance Company
Call your auto insurance company and make a claim under your Personal Injury Protection (PIP) coverage, if available. If your insurance company says you do not have PIP coverage, ask your insurance company to send you a letter confirming your waiver, in writing, of said coverage. You will need a PIP waiver letter to obtain coverage under a health insurance policy.

Do not talk to the adverse driver’s insurance carrier.

Consider consulting a Personal Injury Lawyer
No, this is not an advertisement for my services; instead, it is an attempt to make your life easier. There is no such thing as a “simple” auto accident, particularly when you are the person the accident has impacted. The last thing you want is to spend your valuable time navigating the bureaucracy of insurance claims and the medical industrial complex; you can hire an attorney to do that for you. Better yet, most personal injury attorneys will not charge you for their time until they recover money for you (yes, just like those ads you hear on TV).

I hope you don’t need the advice set forth above, but, if you do, take care of yourself, remain calm and feel better soon.

Vanessa Vanderbrug is a Personal Injury Attorney with the Kent Law Firm of Hanis Irvine Prothero, PLLC 253-520-5000, vvanderbrug@HIPLawfirm.com