The District of Columbia Homestead Exemption

Learn about the homestead bankruptcy exemption in Washington D.C.

By , Attorney University of the Pacific McGeorge School of Law
Updated 3/14/2025

If you're considering filing for bankruptcy in the District of Columbia, the District of Columbia homestead exemption will help you protect the equity in your home. This article explains how much the District of Columbia homestead exemption is and how to apply it when you want to keep your house in your bankruptcy case.



How Much Is the District of Columbia's Homestead Exemption?

The District of Columbia lets filers use either the federal or its exemption system. However, you can't mix exemptions from both lists, so you'll want to select the system that will protect your most important assets. We've listed both exemption amounts below and included links to extensive federal and state exemption lists to help you decide which set will work best.

Federal Homestead Exemption

District of Columbia Homestead Exemption

Homestead exemption amount

$31,575

Unlimited

Can spouses who file a joint bankruptcy double the exemption?

$63,150 is available to spouses who co-own property.

Not applicable

Homestead exemption law

11 U.S.C. § 522(d)(1) (statute doesn't include updated exemption amount)

D.C. Code Ann. § 15-501(1)(14)

Other information

Amounts will adjust on April 1, 2028.

Amounts adjust periodically.

Compare other federal and state exemptions.

Federal Bankruptcy Exemptions

LegalConsumer.com

Federal Nonbankruptcy Exemptions


Protecting Property With the District of Columbia Homestead Exemption

In the District of Columbia, the homestead exemption applies to real property, including your home or condominium, or your interest or your dependents' interest in a co-op in which you or your dependents reside. The District of Columbia homestead exemption can also be used to protect your interest in a burial plot purchased for you or your dependents.

If you hold property as tenancy by entirety with your spouse: If one spouse files for bankruptcy—not both—the bankruptcy trustee might be prevented from using the property equity to pay off debts. However, this is a tricky area of law. Talk with a local bankruptcy attorney before filing to ensure that you don't lose valuable property.

Other Requirements for Keeping a Home in Bankruptcy

If you can't protect all of your home equity, you might not be able to keep your home. Although this likely won't be a problem in the District of Columbia given its generous homestead exemption, it's a good idea to understand what happens when a property has nonexempt equity and the other requirements you must meet in bankruptcy.

Typically, the Chapter 7 trustee appointed to your case would sell the house, return the exemption amount to you, pay off the mortgage, and pay creditors with the amount remaining after deducting the trustee's fee.

In Chapter 13, the trustee doesn't sell property, so you could keep it. However, that doesn't mean Chapter 13 filers get a break regarding how much equity they can retain. Instead, you'd need to pay creditors the value of the nonexempt equity through the Chapter 13 plan.

But that isn't all. Keeping your home requires being current on the mortgage when filing for Chapter 7. Otherwise, you could lose it to the lender through foreclosure, possibly even during the Chapter 7 case. If you're behind on payments when filing for Chapter 13, you have an option not available in Chapter 7. You can catch up on the payments over time through the plan.

Learn about other requirements you must meet in Your Home in Chapter 7 and Your Home in Chapter 13. Also, find out why filing for Chapter 13 is better than Chapter 7 when you're behind on payments and don't want to lose your house.

Claiming the Homestead Exemption

When completing your bankruptcy forms, you'll do the following:

Because your home is likely your most valuable asset, consider consulting with a bankruptcy lawyer to ensure you can protect it in bankruptcy.

Where to Find the Homestead Exemption Statute

You'll find the District of Columbia homestead exemption in D.C. Code Ann. § 15-501(1)(14) on the D.C. Law Library website. Learn about finding state statutes in Laws and Legal Research.

When You Can Use Bankruptcy Exemptions

You can file for bankruptcy in the District of Columbia after living there for over 180 days. However, you must live in the District of Columbia for at least 730 days before filing to use the current state's exemptions. Otherwise, you'd use the previous state's exemptions.

If you lived in multiple states during the two years before filing for bankruptcy, you'd use the exemptions of the state you lived in for the majority of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).)

Also, you must own your home in the exemption state for at least 40 months before bankruptcy to avoid the homestead exemption being capped by federal law at $214,000 (amount adjusts on April 1, 2028). Homestead exemption use is also precluded when a filer engages in certain felonious or fraudulent acts. (11 USC §§ 522(p), (q).)

Learn more about filing for bankruptcy after moving to a new state and timing your bankruptcy case. Also, spouses can double some exemption amounts if both parties own the property, but not all of them. Learn about other filing considerations for spouses.

Need More Bankruptcy Help?

Did you know Nolo has made the law accessible for over fifty years? It's true, and we wholeheartedly encourage research and learning. You can find many more helpful bankruptcy articles on Nolo's bankruptcy homepage. Information needed to complete the official downloadable bankruptcy forms is on the Department of Justice U.S. Trustee Program website.

However, online articles and resources can't address all bankruptcy issues and aren't written with the facts of your particular case in mind. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

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