Bankruptcy in Washington
If you’re buried in debt in Washington and can’t see a way out, you’re not alone—and there is help.
Bankruptcy is not a failure—it’s a tool designed to help people regain financial stability. Filing can put an immediate stop to creditor harassment, wage garnishments, and lawsuits.
In Washington, exemptions allow you to shield key assets like your home, car, and retirement accounts. But every situation is different, and choosing the wrong path can have long-term consequences.
We’re here to make each step easier. Our service connects Washington residents with experienced bankruptcy attorneys who understand the law and can help you move forward with clarity.
Types of Bankruptcy in Washington
Bankruptcy is a legal process designed to help individuals and businesses take control of their finances when debt becomes unmanageable. It can eliminate some or all of what you owe, offering a path toward a fresh start. In WA, you’ll need to show that a genuine financial hardship prevents you from keeping up with your current obligations.
That said, not every debt can be erased. Obligations like child support, certain taxes, alimony, and most student loans usually remain. If you’re falling behind, you may be eligible to file under Chapter 7, 11, or 13—each with its own rules and requirements.
In Washington, bankruptcy cases are handled by the U.S. Bankruptcy Court for the Western District of Washington and the Eastern District of Washington. These courts have locations in cities including Seattle, Tacoma, Spokane, and Yakima.
Chapter 7 Bankruptcy
For many people, Chapter 7 bankruptcy offers a straightforward path to financial recovery. It allows you to discharge certain debts and start fresh, free from the weight of overdue bills and collection calls.
But it’s not a decision to rush into. Before filing, take a close look at your income and whether you’re truly unable to pay off your obligations. A bankruptcy attorney in Washington can help you determine whether a liquidation plan fits your circumstances and long-term goals.
Chapter 7 is often the right fit for individuals with little or no reliable income. While it can erase unsecured debts, you may be required to give up certain assets that aren’t protected by exemptions. Once your case is filed, an automatic stay kicks in, temporarily halting most collection actions like foreclosure or wage garnishment.
If you’re considering Chapter 7 bankruptcy in Washington, the means test is a crucial step in determining your eligibility. This test compares your household income to the state’s median income for a household of your size. As of 2025, the median annual income thresholds in Washington are:
- 1 person: $85,482
- 2 people: $102,797
- 3 people: $124,869
- 4 people: $145,341
- 5 people: $156,441
- 6 people: $167,541
- 7 people: $178,641
- 8 people: $189,741
- 9 people: $200,841
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is typically more involved than other forms of debt relief. Accordingly, it is most often used by businesses or individuals with complex financial obligations. It allows you to reorganize what you owe through a court-approved plan, often lasting anywhere from four to 18 months, though the timeframe can vary.
Filing for Chapter 11 is a detailed process that requires full financial disclosure and a realistic plan to repay what you owe. Whether you’re a business or an individual, you’ll need to show the court that your reorganization plan is feasible and supported by accurate, up-to-date documentation.
The paperwork begins with a petition and must include several supporting forms that outline your income, debts, assets, and contracts. These typically include:
- Voluntary Petition for Chapter 11
- Schedules of Assets and Liabilities
- Statement of Financial Affairs
- Schedule of Current Income and Expenditures
- List of Executory Contracts and Unexpired Leases
- Complete List of Creditors and Claim Amounts
- Disclosure Statement explaining the reorganization plan
- Proposed Plan of Reorganization
Chapter 13 Bankruptcy
Chapter 13 bankruptcy—commonly known as a wage earner’s plan—is designed for people who have regular income but need help catching up on debt. In WA, once you file, the court assigns a trustee to review your financial information, including your income, assets, and debts, to determine how much you can realistically repay.
Instead of wiping out debt immediately, Chapter 13 lets you reorganize it through a three to five-year repayment plan. The structure of that plan depends on the assets you want to keep and how reliable your income is. In some cases, the court may discharge remaining balances once the plan is completed.
The Bankruptcy Process in Washington
If your debt is growing faster than you can pay it down and there’s no way to catch up within five years, it may be time to act. Bankruptcy isn’t an easy choice, but it can limit long-term damage, give you breathing room, and put you on a path to regain control.
To start the process in Washington, you’ll need to collect detailed financial records. That includes your income, regular expenses, outstanding debts, and a full list of your assets. This documentation is essential—the court uses it to evaluate your eligibility and determine how your case will proceed. Missing or incomplete information can delay your case or even lead to a denial, so accuracy is key.
If you’re filing for bankruptcy in Washington, understanding the state’s exemption laws is crucial to protecting your assets. Washington allows you to choose between federal and state exemptions, but you can’t mix and match. The right choice depends on your specific financial situation and the assets you wish to protect.
Here’s a breakdown of key Washington state exemptions:
- Homestead Exemption: Protects equity in your primary residence up to the greater of $125,000 or the median home value in your county.
- Motor Vehicle Exemption: Exempts up to $15,000 of equity in one motor vehicle.
- Wildcard Exemption: Allows you to exempt up to $10,000 of personal property, with certain limitations on cash and bank accounts.
- Tools of the Trade: Exempts up to $15,000 in tools, instruments, and materials necessary for your profession or trade.
- Personal Property: Includes exemptions for clothing (up to $3,500 for furs, jewelry, and personal ornaments), household goods and furnishings (up to $6,500), and prescribed health aids.
- Retirement Accounts: Most tax-exempt retirement accounts, such as 401(k)s and IRAs, are fully exempt under federal law.
Work With an Experienced Washington Lawyer
If you’re a Washington resident overwhelmed by debt, bankruptcy may offer the structure and protection you need to regain financial control. Whether you’re considering Chapter 7, 11, or 13, the process can stop aggressive collections, protect key assets, and give you space to rebuild. With strong exemption options under Washington law, many filers can keep essential property while working toward a fresh start.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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