If you file for Bankruptcy in Washington, you'll have two different options. You may file Chapter 7 if you qualify. Chapter 7 will completely erase some of your debts, but you will still have to pay things like back taxes, alimony, and any debts incurred by fraud. Under Chapter 13, few of your debts will be erased, but you will be given time to repay your debts. Some debts may even be forgiven. With both, you will be expected to liquidate many of your assets. However, you won't have to sell your home if it is worth less than $20,200.