Bankruptcy in Washington (2026): Exemptions & Means Test

Washington is one of the states that gives bankruptcy filers a choice between two sets of exemptions, and it has an unusually generous homestead because the amount floats with local home prices. Washington has not opted out of the federal bankruptcy exemptions, so a filer may use either the Washington state exemptions or the federal list in 11 U.S.C. 522(d), whichever protects more property, but cannot mix the two. The figures below are current as of mid-2026, and you should confirm the latest amounts before relying on them.

This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.

Does Washington use state or federal bankruptcy exemptions?

Washington gives filers a choice. The state has not exercised the opt-out authority in 11 U.S.C. 522(b)(2), so a Washington debtor may elect either the Washington state exemptions or the federal exemptions in 11 U.S.C. 522(d). You cannot mix categories from the two systems; you choose one list and apply it to all of your property.

In practice, the decision usually turns on home equity. Washington's state homestead is far larger than the federal homestead in most counties, so homeowners with equity typically choose the state exemptions, while renters or filers with little property sometimes find the federal set, which includes a flexible wildcard, more useful. Either way, federal nonbankruptcy protections like Social Security continue to apply.

Washington homestead exemption and the county-median rule

Washington's homestead is the distinctive feature of filing here. Under RCW 6.13.030, the homestead exemption is the greater of two figures: $125,000, or the county median sale price of a single-family home in the preceding calendar year for the county where the home sits. There is no fixed statewide number above the floor; the protected amount depends on local home prices.

That design makes the homestead effectively high in expensive counties. In a high-cost county such as King County, the county median sale price can be several hundred thousand dollars, so a filer there may protect far more equity than the $125,000 floor. In a lower-cost rural county, the median may be at or near the floor, and $125,000 still applies as the minimum. When a court needs the county median figure, the statute directs it to use data from the Washington Center for Real Estate Research, or a successor entity, so the number is anchored to a published source rather than guesswork.

Two points often surprise filers. First, because the figure floats, the same statute can protect very different amounts in different counties, so the value must be checked for the specific county and year. Second, in bankruptcy the exemption is measured on the petition date, and post-petition appreciation in the exempt interest generally stays protected, which can matter in a rising market.

Vehicle, wildcard, and personal-property exemptions

Washington's state list is broad and was modernized in recent years:

• Motor vehicle: up to $15,000 of aggregate equity in one motor vehicle under RCW 6.15.010.
• Wildcard: in a bankruptcy case, up to $10,000 of any other personal property (excluding personal earnings), which can be applied to assets that have no specific category, under RCW 6.15.010.
• Household goods, appliances, furniture, and home and yard equipment: up to $6,500 in value under RCW 6.15.010.
• Tools of trade: tools, instruments, materials, and supplies used to carry on a trade, up to $15,000 under RCW 6.15.010.
• Furs, jewelry, and personal ornaments: up to $3,500 under RCW 6.15.010.
• Wages: under RCW 6.27, most disposable earnings are protected from garnishment, and wages are claimed as exempt in bankruptcy to the same extent allowed under the garnishment statutes.
• Health aids, child support, and certain personal-injury proceeds are also protected.

The Chapter 7 means test in Washington

The means test screens who can file Chapter 7. It first compares your household's current monthly income, annualized, against the median family income for a Washington household of the same size. If your income is at or below the Washington median, you generally clear this step. If it is above, you complete the longer calculation that deducts allowed living expenses to see whether you have disposable income that should fund a Chapter 13 plan.

The U.S. Trustee Program publishes the median figures. For cases filed on or after April 1, 2026, the Washington median family income is:

Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026, and the U.S. Trustee Program revises them about twice a year, so confirm the figures for your filing date.

Chapter 7 vs. Chapter 13 in Washington

Chapter 7 is a liquidation in which a trustee may sell non-exempt property to pay creditors. Because Washington's homestead floats with county home prices and the personal-property exemptions are generous, many filers keep everything they own, and most remaining unsecured debt like credit cards and medical bills is discharged within a few months.

Chapter 13 is a reorganization for people with regular income. You keep your property and repay part or all of your debt over three to five years. It is often used by homeowners who are behind on a mortgage, because the plan can cure the arrears over time and stop a foreclosure, and by filers whose income is above the median.

In both chapters, filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection activity, including foreclosure, wage garnishment, repossession, and collection calls.

Where you file bankruptcy in Washington

Washington has two federal bankruptcy districts. The U.S. Bankruptcy Court for the Western District of Washington covers the Puget Sound region and the western part of the state, with locations in Seattle and Tacoma. The U.S. Bankruptcy Court for the Eastern District of Washington covers the eastern part of the state, with locations in Spokane and Yakima. You file in the district where you have lived for the greater part of the last 180 days. Federal law requires approved credit counseling before you file and a debtor-education course before discharge.

What bankruptcy can and cannot do

Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a mortgage or car loan continue if you keep the collateral and keep paying.

Because Washington lets you choose between two exemption systems and its homestead depends on county home prices, the choice of exemptions can meaningfully change what you keep. Many people consult a licensed Washington bankruptcy attorney before filing.