An exemption limit means that any equity above the limit is 'non-exempt'. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $4000 with a lien of $3500 has an equity value of only $500 subject to exemption.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non exempt property to be distributed to creditors.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions doubling the exemptions. Unless otherwise noted in the following exemption list, married couples may double the exemption amount given.
Note: the value of property for bankruptcy exemption purposes has been generally accepted to be the Garage sale value of the property
Washington State Exemptions (for bankruptcy)
Federal exemptions are available
Homestead Real property ro mobile home to $30,000 (no limit if seeking to discharge debts on failure to pay a
state income tax assessed on retirement benefits received while a resident of WA. Must record
homestead declarateion before sale of home if proeprty unimporved or home unoccupied.
*Exemption Applies only to equity value in home not hte homes' total value
Insurance: Disability benefits, proceeds or avails
Fraternal benefit society benefits
Annuity contract proceeds to $250 per month
Fire insurance porceeds for destroyed exemption
Group life insuracne policy or porceeds
Life insurance proceeds or avails if beneficiary is not hte insured.
Miscellaneous Property of business partnership
Pensions City employees
Volunteer firefighters
State patrol officers
ERISA qualified benefits
IRA's
Public Employees
Personal Appliances, furnishings, household goods, home and yard equipment to $2,700 total (no limit on
any property located within WA if seeking to discharge debt based on fairluere to pay a state income
tax assessed on retirement benefits received while a resident of WA.
Burial Plot sold by nonprofit cemetery association.
Books to $1,500
Clothing, no more than $1,000 in furs, jewelry, ornaments
Food and fuel for comfortable maintenance
Keepsakes and pictures
2 motor vehicles to $2,500 total (APPLIES ONLY TO 'EQUITY' IN VEHICLES)
Public AFDC (Aid to Families with Dependant Children)
Benefits Unemployment benefits
Crime victims' compensation
General Assistance
Industrial insurance (workmens' compensation)
Old age assistance
Tools of Farm truscks, stock, tools, seed, equipment and supplies of farmer to $5,000 total
Trade Library, office furntiure, office equipment, and supplies of physicaian, surgeon, attorney, clergy
or other professional to $5,000 total
Tools and materials used in another's trade to $5,000
Wages Minimum 75% of wages earnded but not paid; bankruptcy judge may authorize more for low
income
Wild Card $1,000 of any personal property (no more than $100 in cash, bank deposits, bonds, stocks and
securities
SYSTEM #2
Homestead Real or personal Property including a co-op, used as residence to $15,000; unused portion of
homestead may be applied to any property.
Insurance: Disability or health benefits
Life insurance proceeds or avails needed for support
Unmatured life insurance contract accrued avails to $8,000
Unmatured life insurance policy other than credit
Miscellaneous Alimony, child support needed for support
Pensions ERISA qualified benefits needed for support
Personal Animals, crops, appliances, furnishings, household goods, books, musical
property instruments and clothing to $400 per item
Burial plot to $15,000, in lieu of homestead
Health Aids
Jewelry to $1000
Motor vehicle to $2,400
Personal injury recoveries to $15,000 (not to include pain and suffering or
pecuniary loss
Wrongful death recoveries needed for support
Public Crime victims' compensation
Benefits Public Assistance
Social Security
Unemployment benefits
Veterans' benefits
Tools of Implements, books and tools of trade to $1,500
Wages None
Wild Card $800 of any property
Unused portion of homestead or burial exemption of any property