District of Columbia
Bankruptcy in DC (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 16, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 16, 2026. · 4 primary sources cited on this page. How we verify our legal content
The District of Columbia is one of the jurisdictions that lets bankruptcy filers choose: you can use the District's own exemptions or the federal bankruptcy exemptions, whichever protects more of your property. Bankruptcy itself is federal law, but the exemptions that decide what you keep, and the median income that decides which chapter you can use, are set locally. The District's homestead exemption for a principal residence is effectively unlimited, which makes the choice especially important for homeowners. The figures below reflect amounts in effect in 2026, and you should confirm the current numbers before relying on them.
This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.
Does DC use local or federal bankruptcy exemptions?
The District of Columbia is not an opt-out jurisdiction. A debtor who files bankruptcy in DC may elect to use the District's exemptions in D.C. Code 15-501, or the federal bankruptcy exemptions in 11 U.S.C. 522(d). Under 11 U.S.C. 522(b), the federal menu stays available to a debtor whose state or district has not specifically barred it, and the District has never enacted such an opt-out. You choose one complete menu and cannot combine items from both lists.
Two threshold points sit behind the figures below. First, which jurisdiction's exemptions you may claim at all is fixed by 11 U.S.C. 522(b)(3)(A), which points to the place where you were domiciled for the 730 days before filing, or, if you moved during that window, the place where you lived for the greater part of the 180 days before that period. Second, D.C. Code 15-501 is written on its face as the exempt property of the head of a family or householder residing in the District of Columbia, or of a person who earns the major portion of his livelihood in the District while being the head of a family or householder. The section heading is likewise "Exempt property of householder." A filer who does not readily fit that description should confirm with counsel how the section applies before relying on its amounts.
The choice usually turns on home equity. The District's homestead exemption for a principal residence has no dollar cap, so homeowners with meaningful equity almost always choose the local set. Filers who rent or have little home equity sometimes prefer the federal set because of its larger general wildcard. Even a filer who uses the District exemptions can separately claim the federal nonbankruptcy exemptions for things like Social Security and tax-qualified retirement accounts. Married couples filing jointly can generally each claim a full set of whichever system they choose.
DC homestead exemption
The District of Columbia's homestead exemption is the headline protection for homeowners, and it is among the most generous anywhere. Under D.C. Code 15-501(a)(14), a debtor may exempt the aggregate interest in real property used as the residence of the debtor, or in a cooperative that owns property the debtor uses as a residence. The statute sets no dollar limit, so the homestead is effectively unlimited for a principal residence.
There is one major federal limit to know. Under 11 U.S.C. 522(p), a debtor cannot exempt more than $214,000 of interest in a homestead that was acquired during the 1,215-day period (about 40 months) before filing, even in a jurisdiction whose own exemption is unlimited. That figure is the inflation-adjusted amount in effect for cases filed on or after April 1, 2025, and it is revised every three years. Equity you have held longer than 1,215 days is not subject to this cap. A related provision, 11 U.S.C. 522(q), applies the same $214,000 ceiling in certain cases involving specified misconduct.
Homestead protection covers equity, not the full value of the home. Because the District's exemption is unlimited, most DC homeowners can protect all of their home equity in a residence held long enough to clear the 1,215-day window, but recently acquired equity and the 522(p) cap should be analyzed carefully before filing.
Vehicle, wildcard, and personal-property exemptions
Beyond the home, the District protects a range of everyday property under D.C. Code 15-501:
- Motor vehicle: up to $2,575 of equity in one vehicle under (a)(1).
- Household furnishings, goods, clothing, appliances, books, animals, crops, and musical instruments: up to $425 per item and $8,625 in aggregate under (a)(2).
- Wildcard: up to $850 of any property, plus up to $8,075 of any unused portion of the homestead exemption under (a)(3).
- Tools of the trade and business property: up to $1,625 in implements, professional books, or tools of the trade under (a)(4), which also applies to merchants.
- Wages: Section 15-501 contains no wage exemption. Wage garnishment in the District is capped separately by D.C. Code 16-572, which limits an attachment to 25% of the amount by which disposable wages for a week exceed 40 times the District minimum hourly wage.
- Non-wage earnings, insurance, annuity, and pension payments: up to $200 each month under D.C. Code 15-503 for a person who provides the principal support of a family, or up to $60 each month for a person who does not.
- Retirement accounts: tax-qualified plans are protected under the District's exemptions and under federal law regardless of which menu you choose.
The District's dollar figures in 15-501 are largely fixed in the statute, so confirm the current numbers before filing, because the Council can amend them.
The Chapter 7 means test in DC
The means test screens Chapter 7 filings for a presumption of abuse. The first step compares your household's current monthly income, annualized, to the median family income for a District household of the same size. If your income is at or below the District 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. If it is above the median, you complete the longer calculation that subtracts allowed expenses to see whether you have disposable income that should fund a Chapter 13 plan instead.
The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after April 1, 2026, the District of Columbia median family income is:
| Household size | District of Columbia median annual income |
|---|---|
| 1 | $85,391 |
| 2 | $161,397 |
| 3 | $161,397 |
| 4 | $166,598 |
Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026. The U.S. Trustee Program revises the median income data roughly twice a year, so confirm the current numbers for your filing date.
Chapter 7 vs. Chapter 13 in DC
Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, but because the District's exemptions protect most household property and, for a principal residence, all home equity within the federal cap, many Chapter 7 cases are "no-asset" cases where nothing is sold. Most remaining unsecured debt, such as credit cards and medical bills, is discharged in a few months.
Chapter 13 is a reorganization for filers with regular income. You keep your property and repay some or all of what you owe through a three-to-five-year plan. Chapter 13 is often chosen by homeowners who are behind on a mortgage, because the plan can spread out the missed payments and stop a foreclosure while you catch up.
In both chapters, filing triggers the automatic stay under 11 U.S.C. 362. The stay immediately halts most collection activity, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.
Where you file bankruptcy in DC
The District of Columbia is a single federal bankruptcy district. All DC bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Columbia, whose clerk's office is located at 333 Constitution Avenue NW in Washington. Before filing, federal law requires you to complete an approved credit-counseling course, and you must complete a debtor-education course before your debts are discharged.
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 car loan or mortgage continue if you want to keep the collateral and keep paying.
With the 1,215-day homestead cap and two exemption menus in play, get a free bankruptcy evaluation from a DC lawyer on the menu and chapter that fit before you file (attorney advertising).
Frequently Asked Questions
Does DC use local or federal bankruptcy exemptions?
The District lets you choose. It has not opted out of the federal exemptions, so a filer domiciled in DC may use either the District exemptions in D.C. Code 15-501 or the federal bankruptcy exemptions in 11 U.S.C. 522(d). You pick one full menu, not a mix of both.
What is the homestead exemption in DC?
The District's homestead exemption for a principal residence is effectively unlimited under D.C. Code 15-501(a)(14). One federal limit applies: 11 U.S.C. 522(p) caps equity acquired within 1,215 days before filing at $214,000 (for cases filed on or after April 1, 2025), even where local law is unlimited.
What is the DC median income for the means test?
For cases filed on or after April 1, 2026, the District of Columbia median family income is $85,391 for 1 person, $161,397 for 2, $161,397 for 3, and $166,598 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.
Will I lose my house or car if I file bankruptcy in DC?
Often no. The District's unlimited homestead exemption protects all equity in a principal residence (subject to the federal 522(p) cap of $214,000 on equity acquired within 1,215 days before filing), and the vehicle exemption protects up to $2,575 of car equity. Most filers keep their home and car as long as they stay current on the related loans.
How much equity can I protect in my car in DC?
Up to $2,575 of equity in one motor vehicle is exempt under D.C. Code 15-501(a)(1). The wildcard of $850, plus unused homestead under (a)(3), can be applied to additional car equity if available.
Where do I file for bankruptcy in DC?
All District of Columbia bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Columbia, with the clerk's office at 333 Constitution Avenue NW in Washington. You must complete approved credit counseling before filing.
What debts cannot be discharged in a DC bankruptcy?
Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud generally are not discharged. Most credit-card and medical debt usually is.
Does filing bankruptcy stop a foreclosure in DC?
Filing triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection activity, including foreclosure and wage garnishment. Chapter 13 can also let a homeowner cure missed mortgage payments over time.
Updates
Clarified that income at or below the state median means the presumption of abuse does not arise under the Chapter 7 means test, not that a filer qualifies for Chapter 7.
Corrected the wage-exemption citation: D.C. Code 15-501 contains no wage exemption, so the page now cites the 16-572 garnishment cap and the 15-503 earnings exemption, and it now notes the head-of-family or householder qualifier in 15-501 and the 730-day domicile rule that decides which jurisdiction's exemptions apply.
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Fixed the tools-of-the-trade exemption citation: it is D.C. Code 15-501(a)(4), a $1,625 cap on implements/professional books/tools (also covering merchants), not (a)(13), which is actually a narrow $300 cap on a professional's or artist's library and office furniture.
Corrected the Sources box citation for D.C. Code 15-501 to label the tools-of-trade exemption as subsection (a)(4) at $1,625, matching the corrected body text (subsection (a)(13) is the notary-seal exemption, not tools of trade).
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Code of the District of Columbia, Title 15: Judgments and Executions; Fees and Costs. - Chapter 5: Exemptions and Trial of Right to Seized Property. - Subchapter I: Exemptions.
§ 15-501Exempt property of householder; property in transitu; debt for wages.In forcecited in 2 of our articles
(a) The following property of the head of a family or householder residing in the District of Columbia, or of a person who earns the major portion of his livelihood in the District of Columbia, being the head of a family or householder, regardless of his place of residence, is free and exempt from distraint, attachment, levy, or seizure and sale on execution or decree of any court in the District of Columbia: (1) the debtor’s interest, not to exceed $2,575 in value, in one motor vehicle; (2) the debtor’s interest, not to exceed $425 in value, in any particular item or $8,625 in aggregate value in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal family or household use of the debtor or a dependent of the debtor; (3) the debtor’s aggregate interest in any property, not to exceed $850 in value, plus up to $8,075 of any unused amount of the exemption provided under paragraph (14) of this subsection; (4) the debtor’s aggregate interest, not to exceed $1,625 in value, in any implements, professional books, or tools of the trade of the debtor or the trade of a dependent of the…
Official text (excerpt) · last checked 2026-09-06 · Read the full text in our law library · Verify at github.com
Cited in 11 court opinions in our collectionLatest citing opinion in our collection: 2024
Opinions citing this section in our collection:
- Sloan v. Allen (In re Allen) (United States Bankruptcy Court, District of Columbia 2017, 572 B.R. 440)“…is fully encumbered. Accordingly, Allen could not utilize D.C. Code § 15-501 (a)(14) to exempt any value with respec…”
- In re Wade (United States Bankruptcy Court, District of Columbia 2012, 466 B.R. 20)“…irst, the trustee objects that the exemptions claimed under D.C.Code § 15-501(a)(3) are improper to the extent that t…”
- In Re Mordkin (District Court, District of Columbia 2011, 452 B.R. 311)“…erformance under executory employment contract” pursuant to D.C.Code §§ 15-501(a)(3) and 16-572. 1 He has…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: D.C. Homestead Deduction: 2026 Amount, Deadline and How to Apply
§ 15-503Earnings and other income; wearing apparel and tools of certain persons.In force
(a) The earnings (other than wages, as defined in subchapter III of Chapter 5 of Title 16), insurance, annuities, or pension or retirement payments, not otherwise exempted, not to exceed $200 each month, of a person residing in the District of Columbia, or of a person who earns the major portions of his livelihood in the District of Columbia, regardless of place of residence, who provides the principal support of a family, for two months next preceding the issuing of any writ or process against him, from any court or officer of and in the District, are exempt from attachment, levy, seizure, or sale upon the process, and may not be seized, levied on, taken, reached, or sold by process or proceedings of any court, judge, or other officer of and in the District. Where spouses or domestic partners are living together, the aggregate of the earnings, insurance, annuities, and pension or retirement payments of the spouses or domestic partners is the amount which shall be determinative of the exemption of either in cases arising ex contractu.
Official text (excerpt) · last checked 2026-07-30 · Read the full text in our law library · Verify at github.com
Cited in 1 court opinions in our collectionLatest citing opinion in our collection: 2011
Opinions citing this section in our collection:
- In Re Mordkin (District Court, District of Columbia 2011, 452 B.R. 311)“…nambiguous would produce an anomalous result. He pointed to D.C.Code § 15-503(c), which provides: Notwithstand…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
United States Code Title 11
§ 522ExemptionsIn forcecited in 54 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test
§ 362Automatic stayIn forcecited in 54 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Arizona (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test
Code of the District of Columbia, Title 16: Particular Actions, Proceedings and Matters. - Chapter 5: Attachment and Garnishment. - Subchapter III: Attachment and Garnishment of Wages, etc.
§ 16-572Attachment of wages; percentage limitations; priority of attachments.In forcecited in 2 of our articles
Notwithstanding any other provision of subchapter II of this chapter: (A) Where an attachment is levied upon wages due a judgment debtor from an employer-garnishee, the attachment shall become a lien and a continuing levy upon the gross wages due or to become due to the judgment debtor for the amount specified in the attachment to the extent of 25% of the amount by which the judgment debtor's disposable wages for that week exceed 40 times the minimum hourly wage, as prescribed in [§ 32-1003] ("minimum hourly wage"), in effect at the time the wages are payable. (B) In the case of wages for any pay period other than a week, the Mayor shall, by regulation, prescribe a multiple of the minimum hourly wage equivalent in effect to that set forth in subparagraph (A) of this paragraph. (2) The levy shall be a continuing levy until the judgment, interest, and costs thereof are fully satisfied and paid, and in no event may moneys be withheld, by the employer-garnishee from the judgment debtor, in amounts greater than those prescribed by this section. (3) Only one attachment upon the wages of a judgment debtor may be satisfied at one time.
Official text (excerpt) · last checked 2026-07-30 · Read the full text in our law library · Verify at github.com
Cited in 3 court opinions in our collectionLatest citing opinion in our collection: 2011
Opinions citing this section in our collection:
- Rab v. Safeco Insurance Co. of America (District of Columbia Court of Appeals 1989, 556 A.2d 1072)“…he stay was lifted, Safeco’s writ had priority pursuant to D.C. Code § 16-572 since it was the first to be served. R…”
- In Re Mordkin (District Court, District of Columbia 2011, 452 B.R. 311)“…k to the debtor’s exemption pursuant *312 to D.C.Code § 16-572 of certain unpaid compensation. For the…”
- In Re Shorts (District Court, District of Columbia 1985, 63 B.R. 2)“…f Columbia does under local law constitute a judicial lien. D.C.Code § 16-572. Hence, subsection 522(f) may well be o…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: DC Debt Collection Laws: Wage Garnishment, Statute of Limitations, and Repossession
Sources and References
- D.C. Code 15-501, exempt property of householder: unlimited homestead (a)(14), motor vehicle (a)(1) $2,575, household goods (a)(2), wildcard (a)(3), tools of trade (a)(4) $1,625(code.dccouncil.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by family size, cases filed on or after April 1, 2026(justice.gov).gov
- 11 U.S.C. 522, exemptions: state opt-out authority 522(b), federal exemption schedule 522(d), and the homestead cap on recently acquired equity in 522(p)/(q)(law.cornell.edu)
- 11 U.S.C. 522 (Office of the Law Revision Counsel), including subsection (p) the $214,000 cap on homestead equity acquired within 1,215 days before filing(uscode.house.gov).gov
- U.S. Bankruptcy Court for the District of Columbia (333 Constitution Avenue NW, Washington)(dcb.uscourts.gov).gov
- D.C. Code 15-503, earnings and other income: non-wage earnings, insurance, annuity and pension payments exempt up to $200 per month for a person providing the principal support of a family, $60 per month otherwise(code.dccouncil.gov)
- D.C. Code 16-572, attachment of wages: garnishment limited to 25% of the amount by which weekly disposable wages exceed 40 times the District minimum hourly wage(code.dccouncil.gov)
- 11 U.S.C. 522(b)(3)(A), the 730-day domicile rule (with 180-day fallback) that decides which jurisdiction exemptions a debtor may claim(govinfo.gov)
Paid attorney referral. RecordingLaw may receive compensation when you use an attorney-help link. RecordingLaw is not a law firm. Submitting a request does not guarantee that an attorney will accept your case and does not create an attorney-client relationship.