{"id":286881,"date":"2021-04-23T07:18:00","date_gmt":"2021-04-23T12:18:00","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/washington-bankruptcy-exemptions-and-law.html"},"modified":"2026-08-03T09:39:04","modified_gmt":"2026-08-03T14:39:04","slug":"washington-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/washington-bankruptcy-exemptions-and-law.html","title":{"rendered":"Washington Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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Washington Bankruptcy Exemptions and Law<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Washington <\/span>bankruptcy<\/span> laws<\/span> allow residents to eliminate eligible unsecured debts<\/span> or restructure their financial obligations while protecting vital assets from liquidation<\/span>. Operating under the federal bankruptcy code<\/span>, this system lets debtors select either federal exemptions<\/span> or Washington <\/span>state<\/span> exemptions<\/span> to shield their property, such as a primary home, motor vehicle, or personal belongings.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Washington state<\/span> residents who need debt relief<\/span> and a fresh start<\/span> have the option of filing for bankruptcy. Washington law allows you to eliminate some debts and protect assets while paying off creditors. Depending on the type of bankruptcy you choose, you may be able to keep most of your property while paying your debts, leaving you with a clean slate after the remainder are discharged.<\/p>\n

Washington <\/span>Bankruptcy<\/span> Law<\/span><\/h2>\n

Under federal law<\/span>, the U.S. Bankruptcy Code<\/span><\/a> governs bankruptcy. Most states have their own list of exemptions that state residents can use to protect their assets from creditors. Washington allows residents to choose between\u00a0federal\u00a0and\u00a0state exemptions<\/span>\u00a0when\u00a0filing for\u00a0bankruptcy.<\/p>\n

To file for bankruptcy using Washington <\/span>state<\/span> exemptions<\/span>, debtors must have lived in the state for 730 days (two years). Otherwise, you must file through the state where you lived before moving to Washington. Filers always have the option of using federal exemptions<\/span>.<\/p>\n

You must also complete a credit counseling<\/span> course within 180 days of filing your bankruptcy petition<\/span>. There is a list of approved courses at the Department of Justice Bankruptcy Trustee<\/span> website<\/a>. After the bankruptcy is discharged, you must also take a financial management course.<\/p>\n

Washington Consumer Bankruptcy<\/h2>\n

The type of bankruptcy you file determines the assets you can keep and how long your bankruptcy discharge takes. Two types of consumer bankruptcy are the most commonly used. The one you choose depends on your income and whether you have non-exempt assets<\/span> you want to keep.<\/p>\n

Chapter 7 Bankruptcy<\/span><\/h3>\n

In a Chapter 7 bankruptcy<\/span><\/a>, also called a liquidation<\/span> bankruptcy<\/span>, the bankruptcy trustee<\/span> takes charge of your property. They\u2019ll sell any non-exempt assets<\/span> to pay your creditors, while you keep all exempt assets and property.<\/p>\n

To qualify for a Chapter 7, you must pass a means test<\/span><\/a>. If your income is below Washington\u2019s median annual income, you automatically qualify for a Chapter 7. If not, the courts look at your total debt and disposable income. If your debt load is higher than you can reasonably pay, you may still qualify for a Chapter 7.<\/p>\n

Chapter 13 Bankruptcy<\/span><\/h3>\n

A Chapter 13 bankruptcy<\/span><\/a>, or reorganization bankruptcy, lets people who have a steady income create a repayment plan<\/span> for their debts. Under a Chapter 13, debtors work with the trustee to consolidate their debts and pay them off over a period of three to five years. At the end of the repayment period, any remaining debts may be discharged by the court.<\/p>\n

Chapter 13 bankruptcies<\/span> are preferred by debtors who have valuable non-exempt assets<\/span> and people who have fallen behind on mortgages because of other unsecured debt<\/span> and need to erase dischargeable debt<\/span> while keeping their property. To qualify, you must have a steady income and enough disposable income to make regular monthly payments<\/span> to your creditors while meeting all your living expenses.<\/p>\n

Automatic Stay<\/span><\/h3>\n

As soon as you file either of these bankruptcy petitions<\/span>, an automatic stay<\/span><\/a> goes into effect. The stay halts all creditor collection activities, including foreclosures<\/span>, wage garnishment<\/span>, and lawsuits.<\/p>\n

The stay is not permanent. A creditor can file a Motion for Relief from the Automatic Stay<\/span> to bypass it. In a Chapter 7, the stay gives debtors some breathing room to begin the bankruptcy process<\/span>. In a Chapter 13, the stay lasts throughout the repayment period as long as you remain current on your payments.<\/p>\n

The stay will not stop all creditor actions or prevent wage garnishment<\/span> for child support<\/span> and alimony<\/span>. It provides some space to begin the bankruptcy process<\/span> and ends harassing phone calls and emails.<\/p>\n

Washington <\/span>Bankruptcy<\/span> Exemptions<\/span><\/h2>\n

Washington exemptions<\/span><\/a> allow debtors to protect their property up to the value listed in the statutes. These values are amended periodically. Debtors should consider consulting a bankruptcy lawyer<\/span><\/a> when filing for bankruptcy to ensure they receive all of the exemptions they qualify for. Washington lets married couples<\/span> filing jointly double the state exemptions<\/span> for their exempt property.<\/p>\n

Homestead Exemption<\/span><\/h3>\n

Washington\u2019s homestead exemption<\/span><\/a> applies to any \u201creal or personal property<\/span> \u2026 used as a residence.\u201d The value of the homestead exemption<\/span> is the greater of the following:<\/p>\n