If you file for Chapter 7 bankruptcy in Washington, you can protect some or all of your property with Washington’s bankruptcy exemptions. The bankruptcy exemptions in Washington also play a role in Chapter 13 bankruptcy. Read on to learn about what property is covered by Washington’s bankruptcy exemptions.
For a general overview of bankruptcy exemptions, visit the Bankruptcy Exemption topic page.
Washington Allows Debtors to Choose Between State and Federal Exemptions
Washington is one of the few states that allows debtors to choose between state and federal bankruptcy exemptions. This means that bankruptcy filers may examine both sets of exemptions and select the set that better protects their assets.
Common Washington Exemptions
Here are some of the most common exemptions available under Washington law:
Bank deposits are exempt up to $100. Wash. Rev. Code Ann. § 6.15.010.
Building materials are exempt except for debts due for the purchase of those materials. Wash. Rev. Code Ann. § 60.04.201.
Cemeteries and Burial Property
Burial lots, if used exclusively for burial purposes, are 100% exempt. Wash. Rev. Code Ann. §§ 68.20.120, 68.24.220.
Fraternal Benefit Society Benefits
All fraternal benefit society benefits are 100% exempt. Wash. Rev. Code Ann. § 48.36A.180.
Homestead or Residential Property
The homestead exemption protects a certain amount of equity in a debtor’s home or principal residence. Under Washington law, homeowners may exempt up to $125,000 of their home or other property covered by the homestead exemption.
If a debtor is married, the homestead may consist of the community property or the separate property of either spouse, provided that the same property is not claimed separately by each debtor with the effect of increasing the exemption in excess of $125,000. Wash. Rev. Code Ann. §§ 6.13.010, 6.13.020, 6.13.030, 6.13.040, 6.13.070, 6.13.080; Wash. Const. art. XIX, § 1.
For more details about how the homestead exemption works in Washington, visit The Washington Homestead Exemption.
A debtor may exempt insurance proceeds on exempt property, life insurance proceeds, disability insurance proceeds, group life insurance proceeds, and annuities. Wash. Rev. Code Ann. §§ 6.15.030, 48.18.400, 48.18.410, 48.18.420, 48.18.430.
A debtor may exempt up to $3,250 in one motor vehicle that is used for personal transportation or to maintain employment. A married couple may exempt two motor vehicles not to exceed $6,500. Wash. Rev. Code Ann. § 6.15.010(c).
To learn more about the Washington Motor Vehicle exemption, visit The Washington Motor Vehicle Exemption in Bankruptcy.
Interest in a partnership is exempt to the extent that it can be claimed under existing exemption laws. Wash. Rev. Code Ann. § 25.05.215.
Pension and Retirement Benefits
A debtor may exempt pension and retirement benefits except such benefits that remain subject to claims under support orders. This exemption applies to IRAs. Wash. Rev. Code Ann. §§ 6.15.020, 41.28.200.
You may exempt the following personal property:
- up to $3,500 in wearing apparel
- up to $3,500 in private libraries
- household goods, appliances, and furniture (not to exceed $6,500 per individual or $13,000 per married couple, with no single item to exceed $750)
- child support
- health aids
- health savings account and medical savings account deposits (6.15.020)
- personal injury recovery and/or proceeds, not to exceed $20,000 per individual, and
- loss of future earning recoveries (to the extent reasonably necessary for support).
Wash. Rev. Code Ann. § 6.15.010.
Work release earnings in the possession of an employer or prison officer are exempt. Wash. Rev. Code Ann. § 72.65.060.
Certain public grants and assistance are exempt. Wash. Rev. Code Ann. §§ 74.08.210, 74.13.070.
A debtor may exempt up to $10,000 in tools, instruments, and materials used to carry on his or her trade. Special exemptions are available for farmers, physicians, attorneys, and clergymen. Wash. Rev. Code Ann. § 6.15.010.
Trust, Escrows and Deposit Accounts
Spendthrift trusts and other properties are 100% exempt. Wash. Rev. Code Ann. § 6.15.010.
A debtor may exempt 100% of all unemployment compensation, provided that such funds are not commingled with nonexempt funds. Wash. Rev. Code Ann. § 50.40.020.
A debtor may exempt the following amount of his or her wages (except to enforce court awarded support orders):
- 75% of his or her disposable earnings; or
- 30 times the federal minimum hourly wage per week (whichever is greater).
Wash. Rev. Code Ann. § 6.27.150.
All workers compensation is 100% exempt. Wash. Rev. Code Ann. § 51.32.040.
You may exempt $3,000 worth of any type of personal property. But of that $3,000, you may not exempt more than $1,500 total of cash, bank deposits, bonds, stocks, and securities.
Confirming the Status of Washington’s Bankruptcy Exemptions
Washington’s exemption amounts are adjusted periodically. To make sure you have the most recent figures, be sure to check for any updates at the official website of the Washington State Legislature at www.leg.wa.gov.
For a list of other common exemptions in Washington, see Washington Bankruptcy Exemptions.
For additional information on how to research and find the latest exemption amounts, see our Legal Research Center.