Washington Bankruptcy Exemptions
WASHINGTON BANKRUPTCY EXEMPTION LAWS
Washington Bankruptcy Exemption laws allow you to keep certain assets while filing bankruptcy. If you are making payments on an asset that you wish to claim as exempt from the Trustee, you must still continue to make the payments on the asset.
Residents of the State of Washington are fortunate because they may choose either the Federal Exemptions, or the State of Washington Exemptions, depending on which is more advantageous. Generally speaking, the Federal Exemptions are more generous to the consumer than the State exemptions, with the exception of the Washington State bankruptcy homestead exemption, which is now $125,000, as opposed to the Federal Exemption, which is $40,000 for a married couple. Washington bankruptcy exemptions for “tools of the trade” are more generous than the federal exemptions.
If there is a mortgage on real estate, the outstanding balance is deducted from the fair market value of the property to determine how much equity the owner has in the property. The Washington State Bankruptcy Exemption amounts listed above apply to equity. Usually, the trustee will use the assessed valuation from the County Assessor to determine the fair market value of the property.
WASHINGTON BANKRUPTCY EXEMPTION ADVICE
Robert J. Reynolds P.S. has been advising individuals on their choice of Washington bankruptcy exemptions for 40 years and we are well qualified to assist you in this crucial decision. You can have confidence that we will assist you in keeping as much of your property as possible.