Washington Bankruptcy Laws

The state of Washington is divided into two bankruptcy districts: Washington Eastern Bankruptcy Court and Washington Western Bankruptcy Court. Washington chapter 7 bankruptcy laws,  Washington chapter 13 bankruptcy laws and chap 11 BK laws have changed dramatically since October, 2005--the date the Bankruptcy Abuse Prevention and Consumer Protection Act was signed into law. The process for filing chapter 7 bankruptcies is longer, more complicated and more expensive than it was under the old laws. Check with Seattle bankruptcy lawyers and other Washington bankruptcy lawyers to find out how the new bankruptcy laws can affect your case.

Find a Bankruptcy Lawyer in Washington with our debt relief directory and get a free BK evalution for a loan modification, chapter 7, 11, 13 or debt settlement that could lead to a fresh start. Find out from a local attorney if bankruptcy is the best for your situation.

Washington Bankruptcy Exemptions
According to Lawyers.com, in Washington , you have the choice of using either the federal exemption statutes or the Washington exemptions.

If you choose the federal exemptions, you can keep:

• Your home, including co-op or mobile home, to $20,200
• Life insurance payments for person you depended on, needed for support
• Life insurance policy with loan value, in accrued dividends or interest to $10,775
• Unmatured life insurance contract, except credit insurance policy
• Alimony, child support needed for support
• Pensions and Retirement Benefits, ERISA - qualified benefits needed for support
• $525 per item in any household goods up to a total of $10,775
• Health Aids
• Jewelry to $1,350
• Lost earnings payments
• Your motor vehicle to $3,225
• Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits
• Tools of trade up to $20,200
• Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption

If you choose the Washington exemptions, you can generally keep:

• Your home, if you do not have more than $40,000 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages)
• One motor vehicle for an individual, if you do not have more than $2,500 in equity (today's value less costs of sale less payoff balances on all liens and mortgages); you may exempt two motor vehicles for a community, up to $5,000 in equity
• Clothes, but not more than $1,000 in value in furs, jewelry and personal ornaments for any individual
• Books, up to $1,500 in value
• Family pictures and keepsakes
• Household goods, appliances, furniture and home and yard equipment up to $2,700 in value for an individual or $5,400 for the community
• Food and fuel for comfortable maintenance
• Other personal property, up to $2,000 in total value, including $200 in cash and $200 in bank accounts, savings and loan accounts, stocks, bonds or other securities
• Traceable past due, current, or future child support paid by or owed to the debtor
• Professionally prescribed health aids
• Personal injury awards, not including pain and suffering or compensation for actual pecuniary loss, up to $16,150, or the right to or proceeds of a payment for loss of future earnings of the debtor or a person upon whom the debtor was dependent as reasonably necessary for support
• Tools of the trade, up to $5,000 in value
• ERISA-qualified pension benefits
• Public employee pensions, including city employees, state patrol officers and volunteer firefighters
• Individual retirement accounts and annuities
• General assistance, old age assistance and child welfare benefits
• Crime victims', workers' compensation and unemployment benefits
• Child support
• Disability proceeds, avails or benefits
• Life insurance proceeds or avails as long as the beneficiary is not the insured
• Group life insurance policy or proceeds
• Annuity contract proceeds, up to $250 per month
• Fraternal benefit society benefits
• Property of a business partnership
• At least 75% of your earned but unpaid wages; the bankruptcy judge may authorize more for low-income debtors
• Library, office furniture and equipment and supplies of physician, surgeon, clergy or other professional to a total of $5,000
• Tools and materials used in another's trade up to $5,000
• $2,000 of any personal property, but no more than $200 in cash, bank deposits, bonds, stocks and securities

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.