Having more bills than you have income puts a significant strain on your finances. When you can’t pay the bills you’re supposed to pay, you may start to get mail, phone calls, texts or in-person visits from debt collectors. There may be a point where you realize that something must be done to reclaim your financial future.
One option that’s present is filing for bankruptcy. If you choose this, you may wonder how it will affect your assets because the bankruptcy court can seize assets to liquidate and pay off debts. Fortunately, there are some assets that are exempt from this property. Understanding the exemptions may help you to make a decision you feel is in your best interest.
Washington bankruptcy exemptions
Washington has state-level exemptions that filers can utilize. These include:
- Homestead exemption: $125,000 for a single filer or $250,000 for a married couple
- Wage exemption: Up to 35 times the federal hourly wage or 75% of weekly disposable income
- Personal property exemption: Phone, computer, printer, prescribed health aids, clothing for personal use, limited household goods and family keepsakes
- Motor vehicle exemption: Equity of up to $3,250 for a single filer, one additional vehicle with that exemption for a married couple
- Wildcard exemption: Up to $3,000, but certain assets have limits, including $1,500 in cash
- Tools of the trade exemption: Up to $10,000 in things you use for your profession
Some other exemptions include public benefits, such as unemployment, Social Security and workers’ compensation benefits. Pension and retirement benefits are also exempt.
Anyone filing for bankruptcy should ensure that they understand the process, including what property exemptions are present. This can be challenging, particularly in complex cases. Seeking assistance from someone familiar with the bankruptcy process may be beneficial for anyone who’s considering seeking bankruptcy protection.