Bankruptcy Exemptions in Washington
What property you can keep in bankruptcy in Washington: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: 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). RCW 6.15.050(8)
| State or federal exemptions | 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. No Washington statute read prohibits use of the federal exemptions; the choice comes from 11 U.S.C. 522(b). The fields below describe Washington's state exemptions. Source: RCW 6.15.050(8) |
|---|---|
| Homestead exemption | 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. The county median figure changes each year and is not published in the statute. Source: RCW 6.13.030 |
| Car exemption | A motor vehicle up to $15,000 in total value. Each spouse is entitled to his or her own exemption. Source: RCW 6.15.010(1)(d)(iv) |
| Wildcard 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. Each spouse is entitled to his or her own exemptions under RCW 6.15.010(1)(d) and (3). Source: RCW 6.15.010(1)(d)(ii) |
| Retirement accounts | 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. The page shows a version effective until June 30, 2029 and a version effective June 30, 2029; both contain these protections. Source: RCW 6.15.020 |
| Wages | 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. Garnishment exemption amounts: https://app.leg.wa.gov/RCW/default.aspx?cite=6.27.150 Source: RCW 6.15.050(1); RCW 6.27.150 |
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FAQ
Can you use the federal bankruptcy exemptions in Washington?
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.
How much home equity is protected in bankruptcy in Washington?
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.
Can I keep my car in bankruptcy in Washington?
A motor vehicle up to $15,000 in total value. Each spouse is entitled to his or her own exemption.
Does Washington have a wildcard 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.
Are retirement accounts protected in bankruptcy in Washington?
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.
Are wages protected in bankruptcy in Washington?
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.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.