Washington
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:
| Household size | Washington median annual income |
|---|---|
| 1 | $88,585 |
| 2 | $107,100 |
| 3 | $131,737 |
| 4 | $156,567 |
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.
Frequently Asked Questions
Does Washington use state or federal bankruptcy exemptions?
Washington lets filers choose. It has not opted out of the federal exemptions, so a debtor may use either the Washington state exemptions or the federal list in 11 U.S.C. 522(d), but cannot combine the two. Homeowners with equity usually choose the state exemptions because the state homestead is larger in most counties.
What is the homestead exemption in Washington?
Under RCW 6.13.030, Washington's homestead is the greater of $125,000 or the county median sale price of a single-family home for the prior calendar year in the county where the home sits. So $125,000 is the statewide floor, but the protected amount can be much higher in expensive counties such as King County. Courts use Washington Center for Real Estate Research data for the county median.
Why does the Washington homestead vary by county?
The statute ties the homestead to local home prices, setting it at the greater of $125,000 or the county median sale price of a single-family home. Because median prices differ widely across the state, the exemption protects far more equity in high-cost counties than in lower-cost ones, while never dropping below the $125,000 floor.
What is the Washington median income for the means test?
For cases filed on or after April 1, 2026, the Washington median family income is $88,585 for 1 person, $107,100 for 2, $131,737 for 3, and $156,567 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.
How much car equity can I protect in a Washington bankruptcy?
Washington exempts up to $15,000 of aggregate equity in one motor vehicle under RCW 6.15.010. If a vehicle has more equity, the $10,000 bankruptcy wildcard can sometimes be applied to the excess, depending on what else needs protection.
Will I lose my house if I file bankruptcy in Washington?
Washington's homestead protects at least $125,000 of equity, and more in high-cost counties because it tracks the county median home price, so many homeowners keep their homes in Chapter 7 if they stay current on the mortgage. A homeowner whose equity exceeds the county figure should consider whether Chapter 13 is a better fit.
Where do I file for bankruptcy in Washington?
Washington has two districts. The Western District of Washington covers the Seattle and Tacoma area and the western part of the state, and the Eastern District covers Spokane, Yakima, and the eastern part. You file in the district where you have lived for most of the past 180 days, after completing approved credit counseling.
What debts cannot be discharged in a Washington bankruptcy?
Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud or willful injury generally are not discharged. Most credit-card and medical debt usually is.
Overwhelmed by debt in Washington? Get a free bankruptcy consultation
Bankruptcy can stop foreclosure, wage garnishment, and creditor calls, and which debts you can clear and what property you keep depend on Washington's exemptions. Get a free, confidential consultation with a Washington bankruptcy attorney to understand your options. There is no obligation.
Sources and References
- RCW 6.13.030, Washington homestead exemption (greater of $125,000 or county median single-family sale price for the prior year, using Washington Center for Real Estate Research data)(app.leg.wa.gov).gov
- RCW 6.15.010, Washington personal-property exemptions including $15,000 motor vehicle, $10,000 bankruptcy wildcard, $6,500 household goods, and $15,000 tools of trade(app.leg.wa.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, federal bankruptcy exemptions available to Washington filers who choose them, and the 522(b)(2) opt-out authority Washington did not exercise(law.cornell.edu)
- U.S. Bankruptcy Court for the Western District of Washington (Seattle and Tacoma)(wawb.uscourts.gov).gov
- U.S. Bankruptcy Court for the Eastern District of Washington (Spokane and Yakima)(waeb.uscourts.gov).gov