Filing Chapter 7 Bankruptcy in Washington (2026)
Reviewed by DocDraft Legal Team · Washington · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Washington. Washington is a choice state: it did not opt out, so you may elect either the federal 11 U.S.C. 522(d) exemptions or the Washington state exemptions, whichever protects more of your property. You pick one full set; you cannot combine them. This page explains Washington's homestead exemption under RCW 6.13.030, which since a 2021 amendment equals the greater of $125,000 or your county's prior-year median single-family home sale price, along with the vehicle and wildcard figures, the means-test median income, and the two federal bankruptcy courts where Washingtonians file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does Washington use state or federal bankruptcy exemptions?
Washington is a choice state. It did not opt out of the federal system, so under 11 U.S.C. 522(b) and RCW 6.15.050 you may elect either the federal 522(d) exemptions or the Washington state exemptions. You choose one full set, whichever protects more of your property, and you cannot mix the two.
Can I keep my house if I file Chapter 7 in Washington?
Often yes. Under RCW 6.13.030, since a 2021 amendment Washington's homestead exemption is the greater of $125,000 or your county's median single-family home sale price for the preceding calendar year. If your home equity fits within that county-based figure, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Washington?
Usually yes if your equity is modest. Under RCW 6.15.010, Washington exempts up to $15,000 of equity across a maximum of two motor vehicles combined. If your vehicle equity is at or below that figure, the car is protected. Equity above the limit may be reachable by the trustee unless another exemption covers it.
What is the income limit to file Chapter 7 in Washington?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Washington are $88,585 for one earner, $107,100 for two, $131,737 for three, and $156,567 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Washington's Federal-or-State Choice and the County-Median RCW 6.13.030 Homestead
Washington is a bankruptcy choice state. It did not opt out of the federal exemptions, so under 11 U.S.C. 522(b) and RCW 6.15.050 a debtor filing here may elect either the federal 11 U.S.C. 522(d) set or Washington's state exemptions, whichever is more favorable, but must take one full set and cannot combine them. Washington's headline protection is its homestead under RCW 6.13.030, which a 2021 amendment (2021 c 290) tied to local housing prices: the exemption equals the greater of $125,000 or the county median sale price of a single-family home in the preceding calendar year, using data from the Washington Center for Real Estate Research. In high-cost counties this can protect far more than the flat federal homestead. Washington also exempts up to $15,000 of equity across a maximum of two motor vehicles combined under RCW 6.15.010, plus a wildcard of $3,000 in any personal property (with a $1,500 cap on cash) under the same section. Washingtonians file in one of two federal bankruptcy courts: the U.S. Bankruptcy Court for the Eastern District of Washington or the Western District of Washington, based on where they have lived for most of the prior 180 days.
Relevant Laws
Washington Homestead Exemption (RCW 6.13.030)
Sets the homestead exemption at the greater of $125,000 or the county median sale price of a single-family home in the preceding calendar year, as amended in 2021. This county-based figure is the exemption that lets many Washington homeowners keep their house in Chapter 7.
Washington Federal Exemption Choice (RCW 6.15.050)
Washington did not opt out of the federal exemptions. Consistent with 11 U.S.C. 522(b), a debtor filing in Washington may elect either the federal 522(d) exemptions or the Washington state set, taking one full set rather than combining them.
Washington Personal Property, Vehicle, and Wildcard Exemptions (RCW 6.15.010)
Exempts up to $15,000 of equity across a maximum of two motor vehicles combined, household goods, tools of the trade up to $10,000, and a wildcard of $3,000 in any personal property with a $1,500 cap on cash.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b) lets a state opt out of the federal 522(d) exemptions, which Washington has not done, so Washington filers may choose federal or state, and section 707(b) sets the means test measured against state median income.
Regional Variances
Washington Chapter 7 Exemption Table
Homestead
RCW 6.13.030: the greater of $125,000 or your county's median sale price for a single-family home in the preceding calendar year, using Washington Center for Real Estate Research data. Amended in 2021 to track local housing prices, so the protected amount varies by county. Or elect the federal homestead under 11 U.S.C. 522(d)(1).
Motor vehicle
RCW 6.15.010: up to $15,000 of equity across a maximum of two motor vehicles combined. Equity above the figure may be reachable by the trustee unless covered by the wildcard. Filers may instead elect the federal vehicle exemption under 522(d)(2).
Wildcard
RCW 6.15.010: up to $3,000 in any personal property, with no more than $1,500 of that in cash or bank deposits. It protects assets no specific exemption covers. Filers needing a larger portable amount sometimes elect the federal 522(d)(5) wildcard instead.
Personal property and tools of trade
RCW 6.15.010 exempts household goods, furniture, appliances, and apparel, plus tools of the trade, professional books, and instruments up to $10,000. These protect the everyday property and work equipment a debtor needs to continue earning a living.
Wages
RCW 6.27.150 exempts from garnishment the greater of 80 percent of disposable weekly earnings or 50 times the state minimum hourly wage. Earnings already withheld for child support are treated separately. This wage protection continues to shield income during and after a Chapter 7 case.
Retirement
RCW 6.15.020 broadly exempts retirement plans, IRAs, and pension benefits from creditors. ERISA-qualified plans are also excluded from the bankruptcy estate under federal law, so most tax-qualified retirement savings stay protected regardless of whether you elect the state or federal exemption set.
Suggested Compliance Checklist
Confirm the current Washington means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Washington median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $88,585 for one, $107,100 for two, $131,737 for three, and $156,567 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your Washington district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Choose federal or Washington exemptions and value your assets
Before preparing your schedules days after startingDecide between the federal 11 U.S.C. 522(d) set and the Washington set under RCW 6.13.030 and RCW 6.15.010. Look up your county's median home price for the homestead comparison and value your vehicle and personal property so you can match assets to whichever set protects more. You must choose one full set.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Eastern or Western District of Washington, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Washington means-test median income | Check your household size against the U.S. Trustee Washington median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $88,585 for one, $107,100 for two, $131,737 for three, and $156,567 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your Washington district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Choose federal or Washington exemptions and value your assets | Decide between the federal 11 U.S.C. 522(d) set and the Washington set under RCW 6.13.030 and RCW 6.15.010. Look up your county's median home price for the homestead comparison and value your vehicle and personal property so you can match assets to whichever set protects more. You must choose one full set. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Eastern or Western District of Washington, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under RCW 6.13.030, since the 2021 amendment Washington's homestead exemption is the greater of $125,000 or your county's median sale price for a single-family home in the preceding calendar year, using Washington Center for Real Estate Research data. In expensive counties this can shield well over $125,000 of home equity, which is why the figure varies by where you live.
Under RCW 6.15.010, Washington exempts up to $15,000 of equity across a maximum of two motor vehicles combined. If your vehicles' combined equity is at or below that figure, they are protected. Equity above $15,000 may be reachable by the trustee unless you cover it with the wildcard or elect the federal exemption set instead.
Under RCW 6.15.010, Washington provides a wildcard of up to $3,000 in any personal property, but no more than $1,500 of that may be cash or bank deposits. It lets you protect assets that no specific exemption covers. Filers who need a larger portable exemption sometimes elect the federal 522(d) set instead.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Largely yes. Under RCW 6.27.150 Washington shields the greater of 80 percent of disposable weekly earnings or 50 times the state minimum wage from garnishment, and RCW 6.15.020 broadly exempts retirement plans, IRAs, and pensions. ERISA-qualified plans are also excluded from the bankruptcy estate under federal law, so most retirement savings stay protected.
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