Washington Bankruptcy Guide

Complete guide to filing bankruptcy in Washington State, including current median income requirements, Washington's generous homestead exemption up to $125,000, bankruptcy court information for both Washington districts, and how to find qualified bankruptcy attorneys throughout Washington State.

Washington Median Income for Bankruptcy (2026)

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

Household Size	Annual Median Income	Monthly Median Income
1 person	$72,276	$6,023
2 people	$90,090	$7,508
3 people	$102,997	$8,583
4 people	$120,606	$10,051
5 people	$129,606	$10,801
6 people	$138,606	$11,551

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

Calculate Your Washington Eligibility

Washington Bankruptcy Exemptions

Washington does not allow bankruptcy filers to choose federal exemptions. All Washington bankruptcy filers must use Washington state exemptions. However, Washington has some of the most generous exemptions in the nation, particularly for homesteads and personal property.

Washington Homestead Exemption

Up to $125,000.

Washington's homestead exemption protects up to $125,000 of equity in your primary residence. This is one of the most generous homestead exemptions in the country and was significantly increased in recent years to provide better protection for Washington homeowners facing rising property values.

The exemption applies to real property including houses, condominiums, mobile homes, houseboats, and co-ops that serve as your principal residence. The property must be your principal residence at the time of filing bankruptcy.

Washington's generous homestead exemption means that many homeowners can keep their homes in Chapter 7 bankruptcy even with substantial equity. For homeowners in expensive markets like Seattle, Bellevue, or Tacoma, this exemption provides crucial protection.

Washington Vehicle Exemption

Up to $3,250 per vehicle (two vehicles if married filing jointly).

Washington allows you to protect up to $3,250 of equity in one motor vehicle. If you are married and filing jointly, each spouse can claim a vehicle exemption, protecting up to $3,250 in two different vehicles (total $6,500).

If you owe more than your vehicle is worth or have equity within this limit, you can typically keep it by continuing to make loan payments through a reaffirmation agreement in Chapter 7 or through your payment plan in Chapter 13.

Washington State Exemptions

Washington bankruptcy exemptions include:

• Homestead: $125,000
• Vehicle: $3,250 per vehicle (one per person, two total if married filing jointly)
• Household Goods and Furnishings: $6,500 per person ($13,000 if married)
• Jewelry: $3,500 per person ($7,000 if married)
• Wearing Apparel: $3,500 per person ($7,000 if married)
• Books and Electronic Media: $3,500 per person ($7,000 if married)
• Tools of Trade: $10,000
• Wildcard: $3,000 of any personal property
• Wages: Certain amounts of earned but unpaid wages
• Bank Deposits: $500 per person ($1,000 if married) in any bank accounts

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, veteran's benefits, disability benefits, public assistance, child support
• Life Insurance: Life insurance proceeds if beneficiary is not the estate; unmatured life insurance policies
• Health Aids: All medically prescribed health aids
• Education Savings: Washington 529 education savings plan (Guaranteed Education Tuition program)
• Personal Injury Awards: Personal injury compensation up to $20,000
• Keepsakes and Heirlooms: $3,500 per person ($7,000 if married)

Filing Bankruptcy in Washington

Chapter 7 Bankruptcy in Washington

Chapter 7 bankruptcy is commonly filed throughout Washington State. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in Washington, you must pass the means test by having income below the Washington median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Washington's generous exemptions, especially the $125,000 homestead exemption, provide excellent protection for most assets. Many Washington filers can keep their homes, vehicles, and personal property while obtaining a fresh financial start through Chapter 7.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Washington

Chapter 13 bankruptcy allows Washington residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in Washington if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect (particularly if you have more than $125,000 in home equity in expensive markets like Seattle or Bellevue), or if you have priority debts like recent taxes or past-due child support. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Courts in Washington

Washington is divided into two federal bankruptcy court districts:

Western District of Washington

Main Courthouses: Seattle, Tacoma

Covers western Washington including Seattle, Tacoma, Bellevue, Everett, Olympia, Bellingham, and all of Puget Sound. This is the larger and busier of Washington's two bankruptcy districts, serving the most populated region of the state.

Court divisions: Seattle Division (King, Snohomish, Skagit, Whatcom, Island, San Juan counties and others) and Tacoma Division (Pierce, Thurston, Mason, Grays Harbor, Pacific, Lewis counties and others).

The Western District handles the vast majority of Washington bankruptcy cases due to the population concentration in the Seattle-Tacoma metropolitan area.

Eastern District of Washington

Main Courthouses: Spokane, Yakima

Covers eastern Washington including Spokane, Yakima, Kennewick, Pasco, Richland (Tri-Cities), Wenatchee, Walla Walla, and all of eastern Washington. This district serves the agricultural and less populated regions of the state.

Court divisions: Spokane Division (Spokane County and northeastern Washington) and Yakima Division (Yakima, Benton, Franklin counties and south-central Washington).

You must file in the district where you have lived for the greater part of the 180 days before filing. The Cascade Mountains roughly divide the two districts, with western Washington filing in Seattle/Tacoma and eastern Washington filing in Spokane/Yakima.

Washington Residency Requirements

To use Washington bankruptcy exemptions, you must have been domiciled (legally residing) in Washington for at least 730 days (2 years) before filing. If you've lived in Washington 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.

Washington does not allow the choice of federal exemptions, so once you meet the residency requirement, you must use Washington state exemptions (which are quite generous).

Find a Washington Bankruptcy Attorney

Most Washington bankruptcy attorneys offer free initial consultations. Given the complexity of bankruptcy law and Washington's specific exemption rules, consulting with an experienced Washington bankruptcy attorney is highly recommended.

What a Washington Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Maximize Washington exemptions to protect your assets
• Evaluate whether your home equity is protected under Washington's $125,000 homestead
• Calculate whether you qualify for Chapter 7 using the Washington means test
• Navigate Washington-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in Washington

Chapter 7 bankruptcy attorney fees in Washington vary by location:

• Seattle, Bellevue, Eastside: $1,500 to $2,200 plus $338 filing fee
• Tacoma, Everett, Olympia: $1,200 to $1,800 plus $338 filing fee
• Spokane area: $1,100 to $1,600 plus $338 filing fee
• Tri-Cities, Yakima, Bellingham: $1,000 to $1,500 plus $338 filing fee
• Other Washington cities and rural areas: $900 to $1,400 plus $338 filing fee

Chapter 13 attorney fees typically range from $3,500 to $5,000 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Seattle-area attorney fees tend to be higher due to the region's high cost of living. Many Washington attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

Washington-Specific Bankruptcy FAQs

Can I keep my house in Washington bankruptcy?

Most Washington homeowners can keep their homes. Washington's $125,000 homestead exemption is one of the most generous in the nation. If you have $125,000 or less in equity, your home is fully protected in Chapter 7. Even in expensive markets like Seattle or Bellevue, many homeowners fall within this limit due to mortgages. If your equity exceeds $125,000, you may need to file Chapter 13 to keep your home.

Can I keep my car in Washington bankruptcy?

Yes, in most cases. Washington allows you to exempt up to $3,250 of equity in one motor vehicle. If you're married filing jointly, each spouse can claim the exemption for separate vehicles (total $6,500 protection for two cars). If you owe more than your car is worth or have equity within this limit, you can typically keep it by continuing to make payments.

Does Washington allow federal bankruptcy exemptions?

No, Washington is one of the states that opted out of the federal exemption system. All Washington filers must use Washington state exemptions. However, this is rarely a disadvantage because Washington's state exemptions are generally more generous than federal exemptions, especially the $125,000 homestead exemption compared to the federal $27,900 homestead.

How does Washington's community property law affect bankruptcy?

Washington is a community property state, meaning most assets and debts acquired during marriage are owned equally by both spouses. This can affect bankruptcy in several ways: (1) community debts may be discharged even if only one spouse files, (2) community property may be used to satisfy either spouse's debts, (3) exemption planning may differ for married couples. An experienced Washington bankruptcy attorney can navigate these complexities.

What happens to my houseboat or floating home in bankruptcy?

Washington's homestead exemption applies to houseboats and floating homes used as principal residences, particularly common in Seattle's Lake Union area. If your houseboat serves as your primary home, you can claim the $125,000 homestead exemption just like a traditional house. The exemption covers the floating structure but not the moorage lease separately.

Can I protect my Seattle-area condo in bankruptcy?

Yes. Condominiums qualify for Washington's $125,000 homestead exemption if used as your primary residence. Many Seattle-area condo owners can fully protect their equity. However, you remain responsible for HOA fees after filing. In Chapter 7, pre-filing HOA arrears are discharged, but post-filing fees continue. In Chapter 13, you can catch up on HOA arrears through your payment plan.

How does bankruptcy affect Washington State benefits?

Washington State benefits including DSHS (Department of Social and Health Services) assistance, WorkFirst, food assistance, and disability benefits are fully protected in bankruptcy and cannot be taken by creditors. These benefits are not considered income for means test purposes in most cases.

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