Filing Bankruptcy in Washington: Means Test, Exemptions and Courts

Washington has 2 federal bankruptcy court districts, each with its own U.S. Bankruptcy Court: Eastern District of Washington (https://www.waeb.uscourts.gov/); Western District of Washington (https://www.wawb.uscourts.gov/).

Median family income for Washington: 1 person $88,585; 2 people $107,100; 3 people $131,737; 4 people $156,567; add $11,100 for each additional person beyond 4. These figures apply to bankruptcy cases filed on or after July 15, 2026.

Washington has not opted out of the federal bankruptcy exemptions, so filers may choose either Washington's state exemptions or the federal exemption list in 11 U.S.C. 522(d). Washington's exemption statute itself refers to a debtor exempting property "under the bankruptcy exemption provisions of 11 U.S.C. Sec. 522(d)." Spouses who file separate cases within six months of each other cannot split the systems: if one spouse uses the federal exemptions, the other may not claim Washington's personal property exemptions.

The homestead exemption is the greater of $125,000 or the county median sale price of a single-family home in the preceding calendar year (courts use data from the Washington Center for Real Estate Research). There is no dollar limit when the creditor is another state collecting income tax on Washington residents' pension or retirement benefits. The statute sets no acreage limit.

A motor vehicle up to $15,000 in total value. Each spouse is entitled to his or her own exemption.

In a bankruptcy case, any other personal property (except wages) up to $10,000 in value, measured as of the date the bankruptcy petition is filed. Outside bankruptcy, the comparable exemption is limited to $3,000.

Pensions, annuities, retirement and disability allowances and other rights under employee benefit plans, including 401(a) and 403(a) plans, 403(b) accounts, traditional and Roth IRAs, Keogh plans, and health and medical savings accounts, are exempt from execution, attachment, garnishment or seizure, and such plans are treated as spendthrift trusts. Federal government pensions received by Washington residents are also exempt. Exceptions include child support collection and court orders for support or qualified domestic relations orders. Washington public employee pension systems are covered by their own statutes and are excluded from this definition.

Wages and other regular pay for personal services cannot be claimed under the general personal property exemptions, but may be claimed as exempt in bankruptcy to the same extent as under Washington's garnishment statutes. Those statutes protect each week's earnings at the greatest of 35 times the federal minimum hourly wage or 75% of disposable earnings; for consumer debt, the greater of 35 times the state minimum hourly wage or 80% of disposable earnings; and for private student loan debt, the greater of 50 times the highest applicable minimum wage or 85% of disposable earnings.

Eastern District of Washington: the court offers eSR (Electronic Self Representation), a free online tool that helps individuals in the district prepare a Chapter 7 petition; the case is not filed until the court receives the follow-up items listed in the confirmation email (signature pages, the Social Security number statement, credit counseling certificate, and a fee installment or waiver application if needed). Payment advices are filed with local form LF 1007-1 Declaration Regarding Payments. The court's "Filing without an Attorney" page also lists the CLEAR legal aid intake line (Northwest Justice Project) and WashingtonLawHelp. Western District of Washington: the "Filing Without an Attorney" section explains that individuals may represent themselves but must follow all laws, rules and procedures, that corporations and partnerships need an attorney, and that the Clerk's Office cannot give legal advice; it links to bankruptcy basics, credit counseling, fee waiver poverty guidelines and the requirement to provide a list of creditors. Parties without an attorney can submit documents through the court's Online Drop Box (up to 5 submissions a day) and sign up for email notices (DeBN).

Eastern District of Washington: under LBR 2016-1(e) (version dated February 24, 2025, in the local rules set dated 2026-07-17), a chapter 13 attorney may elect an Agreed Flat Fee, supported by a Flat Fee Agreement (LF 2016E), that may not exceed $5,000 in a consumer case or $6,000 in a business case (as defined in 11 U.S.C. 1304(a)); it compensates all ordinary, necessary and reasonably foreseeable services and expenses (excluding filing fees and credit counseling/education fees), including the petition, schedules, plan and amendments, the meeting of creditors and confirmation hearings, and common issues such as objections to confirmation, stay relief motions, claim objections and routine motions to dismiss. Approval is included in the confirmation order. The amounts increase every 3 years beginning April 1, 2028 by the CPI-U, rounded to the nearest $25. Western District of Washington: under LBR 2016-1(e)(1), attorneys representing chapter 13 debtors may be awarded fees of up to $5,000 (or such other amount as may be set by general order) (the "presumptive fee") without first filing a written application; the fee compensates all services through entry of the order confirming the plan, including listed tasks such as filing the plan, attending the section 341 meeting and reviewing claims. Fees above the presumptive fee require an application with itemized time records.