Bankruptcy in Alaska (2026): Exemptions & Means Test

Bankruptcy is federal law, but the property you can protect when you file in Alaska turns on the exemptions you claim. Alaska is one of the minority of states that lets filers choose between the state exemption list and the federal bankruptcy exemptions, so picking the more favorable set is a key decision. This guide explains Alaska's exemptions, the Chapter 7 means test, and where cases are filed, with figures dated so you can confirm they are current.

This is general legal information, not legal advice, and it does not predict the result of any individual case. Exemption amounts and median-income figures change periodically, so verify the current numbers before relying on them.

Federal vs. Alaska exemptions: a choice state

Exemptions decide which property you keep in bankruptcy. Federal law allows each state either to require its own exemptions or to let filers choose, and Alaska lets filers choose. According to the U.S. Bankruptcy Court for the District of Alaska, debtors who file in Alaska may take either the state exemptions or the federal exemptions on Schedule C, but they may not mix the two lists.

That choice is valuable. Some filers do better under the Alaska list (for example, the higher state homestead), while others prefer the federal set in 11 U.S.C. 522(d), which includes a flexible wildcard. Comparing both lists against your specific assets is usually the first planning step in an Alaska case.

Alaska homestead exemption

The homestead exemption protects equity in your principal residence. Under AS 09.38.010, the Alaska homestead exemption is $72,900. Alaska periodically adjusts its exemption dollar amounts by regulation (8 AAC 95), and the bankruptcy court publishes the current figures, so confirm the amount in effect on your filing date.

A key limit: the Alaska state homestead is not doubled for a married couple filing jointly. Spouses are entitled to a single state homestead amount, split between them. By contrast, the federal homestead exemption is doubled for joint filers, which is one reason couples compare the two lists. If you are unmarried but own your home jointly with someone else, you can generally claim only your proportional share.

Motor-vehicle, wildcard, and other exemptions

Alaska's motor-vehicle exemption is $4,050 under AS 09.38.020, but it is available only if the vehicle's full value is $27,000 or less. If the car is worth more than that ceiling, the state vehicle exemption does not apply, which makes the federal vehicle exemption worth comparing for a more valuable car.

Alaska's state exemption list has no wildcard. AS 09.38.055 makes only an enumerated set of exemptions available in a bankruptcy case, and none of them is a residual catch-all. The wildcard an Alaska filer can use is the federal one, 11 U.S.C. 522(d)(5): $1,675 plus any unused portion of the federal homestead exemption up to $15,800, for a maximum of $17,475, which can be applied to almost any property, including cash. Because the two lists cannot be mixed, claiming it means taking the federal set instead of the Alaska figures, including the $72,900 state homestead. The Alaska list instead exempts a personal-property aggregate (around $4,050), tools of the trade (about $3,780), jewelry (about $1,350), and pets (about $1,350), with weekly net wages protected under AS 09.38.030. These adjusted figures change by regulation, so check the current court schedule before relying on them.

The Chapter 7 means test in Alaska

The means test decides whether a Chapter 7 filing is presumed abusive. It first compares your household's current monthly income, annualized, with the median family income for your household size in Alaska. At or below the median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7; above it, a second disposable-income calculation determines whether the presumption of abuse arises.

The U.S. Trustee Program publishes and periodically updates the median figures. For cases filed on or after April 1, 2026, the Alaska medians are $85,817 for a household of one, $112,548 for two, $112,548 for three, and $142,136 for four, with $11,100 added for each additional person above four. Alaska's medians are among the highest in the country, and they update roughly twice a year, so check the current table at justice.gov/ust for your filing date.

Chapter 7 vs. Chapter 13 in Alaska

Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, and most qualifying debts are discharged, often within a few months. With Alaska's choice of exemption sets, many filers protect all or nearly all of their property by selecting the more favorable list.

Chapter 13 is a reorganization built around a three-to-five-year repayment plan, which can cure a mortgage default and let you keep a home or stop foreclosure. In either chapter, filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection calls, lawsuits, wage garnishment, and foreclosure while the case is pending.

Where you file in Alaska

Alaska is a single federal judicial district, so every Alaska bankruptcy is filed in the U.S. Bankruptcy Court for the District of Alaska, which sits in Anchorage and handles cases statewide. There is no separate district to choose among.

Before filing, you must complete a credit-counseling course from an approved provider, and a personal financial-management course is required before you receive a discharge. The court's local rules and forms govern the mechanics of an Alaska filing.

What bankruptcy can and cannot do

Bankruptcy discharges many common debts, including credit cards, medical bills, and personal loans. It does not erase everything. Child support and alimony, most recent taxes, and most student loans generally survive a discharge, and creditors can challenge debts tied to fraud.

Because Alaska lets you choose between two exemption systems, the choice can meaningfully change what you keep, and the analysis is fact-specific. Before you file, get a free bankruptcy evaluation from an Alaska lawyer comparing the two lists against your assets (attorney advertising). The figures here are current as of the dates noted; confirm the latest amounts before relying on them.

Frequently Asked Questions

Does Alaska use state or federal bankruptcy exemptions?

Alaska lets you choose. A debtor filing in Alaska may take either the Alaska state exemptions or the federal exemptions in 11 U.S.C. 522(d) on Schedule C, but not both lists. The District of Alaska confirms this either-or rule, which makes comparing the two sets against your assets an important first step.

What is the homestead exemption in Alaska?

Alaska's homestead exemption is $72,900 under AS 09.38.010. Unlike the federal homestead, it is not doubled for a married couple filing jointly; spouses share a single state homestead amount. Alaska adjusts its exemption figures by regulation, so confirm the current amount on your filing date.

What is the Alaska median income for the means test?

For cases filed on or after April 1, 2026, the U.S. Trustee Program lists Alaska's median family income as $85,817 for one person, $112,548 for two, $112,548 for three, and $142,136 for four, adding $11,100 per additional person. These figures update periodically, so verify the current table at justice.gov/ust.

Will I lose my house or car if I file bankruptcy in Alaska?

It depends on equity and which exemption set you choose. Alaska protects up to $72,900 of home equity and up to $4,050 of vehicle equity (only if the car's value is $27,000 or less), while the federal list may protect more in some situations. Equity above the applicable limits can be at risk in Chapter 7, and Chapter 13 can help you keep secured property by repaying over time.

What is the wildcard exemption in Alaska?

Alaska's own exemption list has no wildcard. The wildcard an Alaska filer can use is the federal one in 11 U.S.C. 522(d)(5), which the District of Alaska lists as $1,675 plus any unused portion of the federal homestead exemption up to $15,800, for a maximum of $17,475, applied to almost any property including cash. Because you cannot mix the two lists, claiming it means electing the federal exemptions and giving up the Alaska amounts, including the $72,900 state homestead.

Where do I file bankruptcy in Alaska?

Alaska is a single federal district, so all cases are filed in the U.S. Bankruptcy Court for the District of Alaska, based in Anchorage and serving the whole state. A credit-counseling course is required before filing and a financial-management course before discharge.

What debts cannot be discharged in Alaska bankruptcy?

Bankruptcy generally cannot erase child support and alimony, most recent tax debt, and most student loans, and creditors can challenge debts arising from fraud. Most credit-card balances, medical bills, and personal loans are typically dischargeable in Chapter 7 or Chapter 13.

What is the difference between Chapter 7 and Chapter 13 in Alaska?

Chapter 7 discharges qualifying debts in a few months, though a trustee can sell non-exempt property. Chapter 13 sets up a three-to-five-year repayment plan that can cure a mortgage default and protect property. Both invoke the automatic stay under 11 U.S.C. 362, which halts most collection and foreclosure when you file.