Federal and State Bankruptcy exemptions are Devastatingly different and only one can be chosen.

The amount of property that can be exempted in a bankruptcy process (exempted means you are entitled to keep it) depends on the assets (property) you own and whether you are filing jointly or individually and can be affected if you have not lived in Washington more than several years possibly. Both Washington’s community property law and Washington’s exemptions may be possibly more beneficial than the Federal exemptions. Which one should be chosen in your case requires specific knowledge about your case. Attorney Richard D. Granvold will advise you whether any assets are not fully protected! If fully protected under Federal Exemptions, you will NOT care or have to understand Washington State exemptions. However, in case you want to know, the exemptions are partial set forth below.

    Below is Washington States exemptions; which one is best for you will be discussed with you when all facts are known. Most persons filing are able to keep everything they have equity in and Richard D. Granvold will discuss that with you! Washington’s exemption amounts are adjusted periodically and will change again on 1-1-2025. Most persons filing bankruptcy are able to exempt all property under federal exemptions so you are recommended not to worry about trying to use the state exemption list.. A non – exclusive Washington State list include the common following exemptions in alphabetical order:

  • Annuities (most)
  • Apparel including jewelry, furs, and personal ornaments: $3500 per person
  • Bank Deposits (and stocks, bonds, securities) – up to $2,500 (possibly only $500 only if debt owed to state agencies)
  • Cash on hand: $1,500
  • Cemeteries and Burial Property – if used exclusively for burial purposes, are 100% exempt
  • Child Support: may be deemed non-estate property but listed and then exempted; includes past due, present, and future so long as traceable;
  • Disability insurance proceeds
  • Family Pictures all
  • Family Keepsakes all
  • Farmers $10,000 discuss with attorney
  • Fraternal Benefit Society Benefits
  • Group life insurance proceeds
  • Homestead or Residential Property – Changes every year as new laws passed May 2021 and depends on what county the house is located. Thus, in King County up to $729,600, Pierce $424,300, Snohomish $549,400, Kitsap $495,000, Jefferson $455,900, etc. of their home (or up to $15,000 or more on some personal property used as residence other than real estate or mobile home)
  • Household goods, appliances, and furniture , provisions and fuel (not to exceed $6,500 per individual or possibly $13,000 per married couple if not a creditor of the community, with no single item to exceed $750)
  • Insurance Benefits – insurance proceeds on:
  • Life insurance proceeds
  • Motor Vehicles – up to $3,250 in one motor vehicle for personal transportation or to maintain employment, or a married couple may possibly exempt two motor vehicles not to exceed $6,500 in aggregate value;
  • Other Personal Property (but includes the cash and bank accounts) $3,000
  • Partnership Property
  • Pension and Retirement Benefits – subject to claims under support orders
  • Personal injury recovery and/or proceeds (not including pain and suffering or compensation for actual pecuniary loss, not to exceed $20,000 per individual, and loss of future earning recoveries (to the extent reasonably necessary for support)(some exceptions)
  • Prisoner Property
  • Private library including electronic media: per person $3,500
  • Professionally Prescribed Health Aids
  • Professional and non professional tools of trade: $10,000 including furniture, equipment, supplies , tools, materials
  • Public Assistance – Certain public grants and assistance
  • Tuition units, purchased more than 2 years before bankruptcy filing or court judgment;
  • Unemployment Compensation – 100% of all unemployment compensation, provided that such funds are not commingled with nonexempt funds
  • Wages A debtor may exempt the following amount wages (except to enforce court awarded support orders): 75% of his or her disposable earnings; or 30 times the federal minimum hourly wage per week (whichever is greater).

The above is not an exclusive list and laws change. A consultation with Bankruptcy Attorney Richard D. Granvold will be provided to you in your case on your exemption of properties.