District of Columbia Bankruptcy Guide

Complete guide to filing bankruptcy in the District of Columbia, including current median income thresholds, DC's generous unlimited homestead exemption, the option to use federal bankruptcy exemptions, information about the U.S. Bankruptcy Court for the District of Columbia, and how to find qualified DC bankruptcy attorneys.

DC Median Income for Bankruptcy (2026)

To automatically qualify for Chapter 7 bankruptcy in Washington DC, your household income must be below these median income levels. If your income exceeds the median, you may still qualify by completing the full means test or you may need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$75,900	$6,325
2 people	$101,213	$8,434
3 people	$115,457	$9,621
4 people	$136,895	$11,408
5 people	$145,895	$12,158
6 people	$154,895	$12,908

Note: For households larger than 4, add $9,000 per additional person. Figures are updated annually by the U.S. Trustee Program.

Calculate Your DC Eligibility

DC Bankruptcy Exemptions

The District of Columbia is one of the jurisdictions that lets filers choose between DC exemptions and the federal bankruptcy exemptions. This choice is valuable — DC offers an unlimited homestead exemption, while federal exemptions provide better protection for other property types. Work with an attorney to determine which set protects more of your property.

DC Homestead Exemption

Unlimited.

DC provides one of the most generous homestead exemptions in the country — protecting all equity in your principal residence regardless of value. This applies to houses, condominiums, and cooperative apartments serving as your primary home. There is no acreage limit (irrelevant in urban DC anyway).

To use DC's unlimited homestead, you must have owned the property for at least 1,215 days (approximately 40 months) before filing. Otherwise, the federal cap on recently-acquired homesteads ($189,050) applies.

Federal Exemption Alternative: The federal homestead exemption is $27,900 ($55,800 for married couples filing jointly). For most DC homeowners, the unlimited DC exemption is dramatically better.

DC Vehicle Exemption

$2,575 per vehicle.

DC's motor vehicle exemption protects up to $2,575 of equity in one motor vehicle. If your vehicle equity exceeds $2,575 under DC exemptions, federal exemptions ($4,450) may serve you better.

DC State Exemptions

DC bankruptcy exemptions include:

• Homestead: Unlimited (principal residence, after 1,215-day ownership)
• Vehicle: $2,575
• Household Goods: $425 per item, $8,625 total
• Jewelry: $575
• Tools of Trade: $1,725
• Wildcard: $850 + up to $8,075 of unused homestead
• Wages: 75% of earned but unpaid wages (or 40 times federal minimum wage per week, whichever is greater)
• Unemployment/Public Benefits: Fully protected
• Insurance: Life insurance proceeds if beneficiary is spouse or dependent

Federal Exemptions (Alternative Choice)

DC filers may choose federal exemptions instead:

• Homestead: $27,900 ($55,800 for married couples)
• Vehicle: $4,450
• Household Goods: $700 per item, up to $14,875 total
• Jewelry: $1,875
• Tools of Trade: $2,800
• Wildcard: $1,475 general + up to $13,950 of unused homestead (total $15,425)

Which Exemptions Should You Choose?

Choose DC exemptions if:

• You own significant home equity — DC's unlimited homestead beats federal's $27,900
• You meet the 1,215-day ownership test
• Your non-home assets are modest

Choose federal exemptions if:

• You rent or have little home equity
• You have significant household goods ($14,875 federal vs $8,625 DC)
• You have a vehicle with more than $2,575 equity ($4,450 federal protection)
• You have significant savings or non-retirement accounts (need larger wildcard)

Most DC homeowners with equity choose DC exemptions because the unlimited homestead dwarfs anything federal offers. DC renters and tenants usually choose federal exemptions for better personal property protection.

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits under federal law
• Public Benefits: Social Security, unemployment, workers' compensation, veterans' benefits, disability, and DC public assistance
• Life Insurance: Life insurance proceeds and cash value if beneficiary is spouse or dependent
• Health Aids: All health aids and medical equipment
• Personal Injury Awards: Personal injury recoveries to the extent needed for support
• Alimony/Support: Protected to the extent needed for support

Filing Bankruptcy in DC

Chapter 7 Bankruptcy in DC

Chapter 7 bankruptcy is widely filed in DC. The process takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and deficiency balances.

DC's higher median income means many filers qualify automatically without the full means test. Filers who exceed the median can still qualify by showing that after allowable expenses (including DC's high housing costs), they have insufficient disposable income to fund a Chapter 13 plan.

The choice between DC and federal exemptions is critical. DC homeowners with equity should strongly consider DC's unlimited homestead, while renters may prefer federal's larger wildcard and personal property allowances. An attorney can run both scenarios.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in DC

Chapter 13 bankruptcy allows DC residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. It's especially useful if you're behind on mortgage or condo payments, if you have non-exempt assets to protect, or if your income is too high for Chapter 7.

DC's high housing costs make Chapter 13 common among homeowners facing foreclosure — the plan can cure mortgage arrears over the full plan period while maintaining current payments.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Court in DC

All DC bankruptcy cases are heard by a single federal court:

U.S. Bankruptcy Court for the District of Columbia

Main Courthouse: E. Barrett Prettyman Courthouse, 333 Constitution Avenue NW, Washington, DC 20001

The DC bankruptcy court is one of the smaller federal bankruptcy courts by caseload but serves one of the most diverse filer populations. The court handles cases for DC residents regardless of ward or neighborhood. Online filing is available for attorneys, and most routine hearings can be attended remotely.

You must have lived in DC for the greater part of the 180 days before filing to file here. Visit the U.S. Courts website for court rules, procedures, and filing guidance.

DC Residency Requirements

To use DC bankruptcy exemptions, you must have been domiciled in DC for at least 730 days (2 years) before filing. If you've lived in DC for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Additionally, to claim DC's unlimited homestead exemption, you must have owned your home for at least 1,215 days (approximately 40 months). For shorter ownership, federal caps on state homestead exemptions apply.

Find a DC Bankruptcy Attorney

Most DC bankruptcy attorneys offer free initial consultations. Given DC's high cost of living, valuable real estate, and the important choice between DC and federal exemptions, working with an experienced local attorney is highly recommended.

What a DC Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter fits your situation
• Compare DC vs. federal exemptions to maximize protection
• Analyze the 1,215-day homestead ownership test
• Calculate whether you pass the DC means test for Chapter 7
• Navigate DC-specific procedures and local court rules
• Prepare and file all bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Address condominium assessments, co-op fees, and DC-specific housing issues

Cost of Filing Bankruptcy in DC

Chapter 7 bankruptcy attorney fees in Washington DC generally range:

• Central DC: $1,500 to $2,500 plus $338 filing fee
• Complex cases (homeowners, business income): $2,500 to $4,000 plus $338 filing fee

Chapter 13 attorney fees typically range from $3,500 to $5,500 plus a $313 filing fee, and are usually paid through the repayment plan rather than upfront.

Many DC attorneys offer payment plans for Chapter 7, and legal aid programs like Bread for the City and DC Legal Aid may assist qualifying low-income residents at no cost.

DC-Specific Bankruptcy FAQs

Can I keep my DC condo in bankruptcy?

Yes, in most cases. If you use DC's unlimited homestead exemption (and meet the 1,215-day ownership test), all your equity is protected regardless of value. You must stay current on mortgage payments and association fees going forward. If you're behind on mortgage or HOA, Chapter 13 can help you catch up.

Can I keep my car in DC bankruptcy?

Usually yes. DC's vehicle exemption is $2,575; federal is $4,450 plus wildcard. Most DC residents with car loans have little equity and can keep their vehicle by staying current on payments through reaffirmation.

Should I choose DC or federal exemptions?

Homeowners with equity should almost always choose DC exemptions — the unlimited homestead is far more valuable than federal's $27,900. Renters should generally choose federal exemptions for better wildcard, household goods, and vehicle protection. A DC bankruptcy attorney can run the numbers both ways.

What is the 1,215-day rule?

Federal law caps a state's unlimited homestead exemption at $189,050 if you acquired the property within 1,215 days (about 40 months) of filing. To claim DC's full unlimited homestead, you must have owned your principal residence for at least 1,215 days before filing.

What if I just moved to DC?

You must live in DC for the greater part of the 180 days before filing to file in DC's bankruptcy court. However, to use DC exemptions, you need 730 days (2 years) of domicile. If you've been in DC less than 2 years, you must use the exemptions of the state where you lived for the 180 days before that 2-year period.

Can federal employees file bankruptcy in DC?

Yes. Federal employment does not prohibit bankruptcy filing, nor can an employer terminate you solely for filing. Some positions with security clearances may require disclosure, and clearance adjudicators evaluate financial irresponsibility — but bankruptcy, used responsibly, can actually resolve financial concerns that would otherwise jeopardize clearance.

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