The Washington bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Washington. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In Washington, you also have the choice of using the federal exemption statutes instead of your Washington exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Washington you may also use certain federal exemptions in addition to your Washington exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | Real property or mobile home to $40,000 ( no limit if seeking to discharge debt based on failure to pay a state income tax assessed on retirement benefits received while a resident of Washington, 6.15.030) Must file homestead declaration before sale of home if property unimproved or home unoccupied |
6.13.010,6.13.030 6.15.040 |
Personal Property | Appliances, furniture, household goods & home yard equipment to $2700 total (no limit on any property located within Washington if seeking to discharge debt based on failure to pay a state income tax assessed on retirement benefits received while a resident of Washington, 6.15.025) Books to $1500 Burial plots sold by nonprofit cemetery association Clothing, no more than $1000 in furs, jewelry, ornaments Food and fuel for comfortable maintenance Keepsakes & pictures 1 motor vehicle for each individual to $2500 total (2 motor vehicles as community property of spouses two motor vehicles to $5000 total) Professionally prescribed health Personal bodily injury payments- |
6.15.010(3) (a) 6.15.010(2) 68.20.120 6.15.010(1) 6.15.010(3) (a) 6.15.010(2) 6.15.010(3) ( c) 6.15.010(3)(e) 6.15.010(3)(f) |
Insuranc | Annuity contract proceeds to $250 per month Disability proceeds, avails or benefits Fire insurance proceeds for destroyed exemption Fraternal benefit society benefits Group life insurance policy or proceeds Life insurance proceeds or avails if beneficiary is not the insured | 48.18.430 48.18.400 6.15.030 48.36A.180 48.18.420 48.18.410 |
Miscellaneous | Property of business partnership | 25.04.250 |
Pensions | City employees ERISA-qualified benefits IRAs Public employees State patrol officers Volunteer firefighters | 41.28.200 6.15.020 6.15.020 41.40.380 43.43.310 41.24.240 |
Public Benefits | Child welfare Crime victims’ compensation General assistance Industrial insurance (workers’ compensation) Old-age assistance Unemployment compensation Child Support | 74.13.070 7.68.070, 51.32.040 74.04.280 51.32.040 74.08.210 50.40.020 6.15.010(3)(d) |
Tools of Trade | Farm trucks, stock, tools, seed, equipment & supplies of farmer to $5000 total Library, office furniture, office equipment & supplies of physician, surgeon, clergy or other professional to $5000 total Tools & materials used in another’s trade to $5000 |
6.15.010(4) (a) 6.15.010(4) (b) 6.15.010(4) ( c) |
Wages | Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors |
6.27.150 |
Wild Card | $2000 of any personal property (no more than $200 in cash, bank deposits, bonds, stocks & securities) | 6.15.010(3) (b) |
For more information on filing bankruptcy in Washington explore Washington Bankruptcy Law.
