WASHINGTON BANKRUPTCY LAW

Washington Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Washington Bankruptcy Statistics: In 2009, over 30,000 bankruptcies were filed in the state of Washington. Business bankruptcies accounted for 1,158 and personal bankruptcies accounted for 30,379 or more than 96.33% of Washington Bankruptcies.

Washington State Bankruptcy Exemptions:

Homestead

If the residence consists of real estate, manufactured home, mobile home, or improvements to any of these the exception is limited to $125,000. If the residence is a form of personal property other than listed above, the exception is limited to a significantly lower $15,000.

If the debt is a result of failure to pay income taxes on a Washington pension or a retirement plan, then there is no limit on the homestead exemption.

Personal Property

The following items are entirely exempt when filing for bankruptcy in Washington:

1. All past child support due to the debtor.
2. All professionally prescribed health aids to debtor or the debtors dependents
3. Burial plots, only when sold by a nonprofit cemetery association

The following exemptions are subject to limitations:

1. Clothing up to $1,000 per individual
2. Books up to $1500 per individual
3. Damages recovered in a personal injury claim of the debtor or of someone on who the debtor depends up to $16,150
4. Damages recovered for loss of future earnings of the debtor or of someone on who the debtor depends – to the extent necessary for support
5. Qualifying college prepayment programs – the program is exempt at the value it would have been before all the payments made in the two years before filing for bankruptcy.

The following exemptions have different limitations for a single person and a married couple:

1. Household goods, including but not limited to appliances, furniture; fuel and home and yard equipment up to $2,700 for an individual and $5,400 for a married couple.
2. Motor vehicle - a single vehicle for an individual up to $2,500 or two vehicles for a married couple up to $5,000 in combined value

Insurance

The following insurance policies are exempt when filing bankruptcy in Washington:

1. Life insurance proceeds or avails, if beneficiary is not the insured
2. Group life insurance policy or proceeds
3. Annuity contract proceeds up to $250 per month
4. Disability proceeds, avails or benefits
5. Fire insurance proceeds for destroyed exemption
6. Fraternal benefit society benefits

Pension

In a Washington bankruptcy, the following individuals’ and their survivor’s pensions are exempt:

1. City employees
2. Public employees
3. State patrol officers
4. Volunteer firefighters

The following pension types are exempt:

1. ERISA-qualified pensions
2. IRAs

Public Benefits

The following public benefits are exempt when filing bankruptcy in Washington:

1. General assistance
2. Child welfare
3. Child Support
4. Crime victims’ compensation
5. Old-age assistance
6. Industrial insurance (workers’ compensation)
7. Unemployment compensation

Miscellaneous

When the debtor is a partner in a business, the property of the business is exempt.

Wages

Wages up to 35 times the federal limit or 75% of the disposable earnings of the debtor, whichever is greater is exempt when filing bankruptcy in Washington. A judge may be authorized to increase the amount for low-income debtors.

Tools of the Trade

The following exemptions can be claimed only by a farmer for up to $5,000:

1. Farm trucks
2. Farm stock
3. Farm tools
4. Farm equipment
5. Supplies and seed

The following exemptions can be claimed by medical doctors, attorneys, clergymen or other professionals for up to $5,000:

1. Books
2. Office furniture
3. Office equipment and supplies

All other debtors can exempt $5,000 for materials and instruments used to continue their trade.

Wildcard

When filing for bankruptcy in Washington State, another $2,000 in personal property may be exempt in accordance with the following conditions:

1. Only $200 may be in cash
2. Only $200 may be in bank accounts, stocks, bonds and securities.

Federal Bankruptcy Exemptions: Yes

Washington Bankruptcy Courts:

United States Bankruptcy Court in the Eastern District of Washington has jurisdiction in the following counties: Adams, Asotin, Benton, Chelan, Columbia, Douglas, Ferry. Franklin, Garfield, Grant, Kittitas, Klickitat, Lincoln, Okanogan, Pend Oreille, Spokane, Stevens, Walla Walla, Whitman, Yakima.

United States Bankruptcy Court in the Western District of Washington has jurisdiction in the following counties: Clallam, Clark, Cowlitz, Grays Harbor, Island, Jefferson, King, Kitsap, Lewis, Mason, Pacific, Pierce, Skagit, Skamania, Snohomish, Thurston, Whakiakum, Whatcom.