Washington Bankruptcy Laws
Washington, as many other states, allows the option of either the federally mandated exemptions or the state specific exemptions from Washington state law, which are:
Homestead
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Up to $40,000 |
Wages |
Up to 75% earned but unpaid |
Personal Property |
Home and yard appliances to $2,700, books to $1,500, clothing to $1,000, motor vehicle up to $2,500 or $5,000 for two |
Pensions |
ERISA-qualified, IRAs |
Public Benefits |
Crime victims, worker’s compensation, unemployment and child welfare |
Tools of the Trade |
Any single trade equipment items up to $5,000 |
Insurance |
Full group/cooperative insurance |
Miscellaneous |
Burial plots, health aids, child support and alimony, $2,000 any personal property and $200 in a bank account |
When a decision is reached on the most effective mode of bankruptcy, a petition must be filed to the bankruptcy court. To file a petition, all of a debtor’s possessions must be inventoried. For those filing for Chapter 7 bankruptcy, this must be a meticulous process in order to avoid bankruptcy fraud, and a “means test” must also be passed in order to gain access to Chapter 7. A response is received, generally, in 20 to 40 days, and if successful, creditors will be notified immediately. The following meeting between a bankruptcy trustee, the debtor and their creditors, where for those filing for Chapter 13 bankruptcy, a repayment plan is arranged. This is the most important aspect of the bankruptcy process for Chapter 13 filers, aside from completion of the arranged plan.
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