Chapter 13 bankruptcy in Washington State is a court-supervised repayment plan that lets you keep your property while paying off some or all of your debts over three to five years. You make one monthly payment to a trustee, who distributes the money to your creditors on a schedule a bankruptcy judge has approved. The moment you file, a federal court order stops foreclosures, wage garnishments, repossessions, and most other collection efforts. When you finish the plan, most of your remaining unsecured debt is wiped out.
Who Can File Chapter 13 in Washington
Chapter 13 is for individuals with a steady income. That income can come from wages, self-employment, Social Security, or any other reliable source. Businesses can’t file; only people can. You also have to fit under two debt ceilings as of the day you file: unsecured debts (credit cards, medical bills, personal loans) must be under $526,700, and secured debts (mortgages, car loans) must be under $1,580,125.1Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor Only debts that are fixed in amount and not dependent on a future event count. If you’re above either cap, your option is Chapter 11, which is more expensive and more complicated.
Income, the Means Test, and Plan Length
How long your plan runs depends on how your income compares to the Washington median for a household of your size. For cases filed through March 31, 2026, the medians are $86,314 for one earner, $104,354 for two people, $128,360 for three, and $152,553 for four, with $11,100 added per additional person.2United States Department of Justice. November 1, 2025 Median Income Table
Below the median, you can propose a three-year plan. Above the median, your plan runs five years, and you must commit all your projected disposable income during that period to paying unsecured creditors.3United States Courts. Chapter 13 Bankruptcy Basics Below-median filers can still choose five years if they need the extra time to catch up on a mortgage or car loan.
What the Automatic Stay Does, and What It Doesn’t
The second your petition is filed, the automatic stay takes effect. It halts almost all collection activity: foreclosure sales, wage garnishments, lawsuits, repossessions, utility shutoffs, and creditor calls.4Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay For many Washington filers, stopping a scheduled foreclosure is the whole reason to choose Chapter 13 in the first place.
The stay has real limits. It only covers debts and actions that existed before you filed, so a landlord suing over rent that comes due after the filing date isn’t blocked. If a landlord already had a court judgment for possession before you filed, the stay won’t undo the eviction. Criminal proceedings, child support enforcement, and some tax audits continue regardless.
Repeat filers get less protection. If you had a case dismissed in the previous year, the stay expires after 30 days unless you ask the court to extend it. If two or more cases were dismissed in the prior year, there’s no automatic stay at all unless you file a motion and prove the new case is in good faith.4Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay Courts presume bad faith in those situations.
Keeping Your Property: Washington Exemptions
In Chapter 13 you keep everything, but exemptions still matter because the value of your non-exempt property sets the floor for what unsecured creditors must receive through the plan. If you own $20,000 in non-exempt property, your plan must pay unsecured creditors at least $20,000 over its life. Washington filers can choose either the state exemption system or the federal bankruptcy exemption set, but you have to pick one or the other for the whole case.5United States Bankruptcy Court. Exemptions (Property You Can Keep)
Washington’s homestead exemption protects equity in your primary residence equal to the greater of $125,000 or the county median sale price of a single-family home from the preceding calendar year.6Washington State Legislature. RCW 6.13.030 – Homestead Exemption Amount In King County or San Juan County, that formula often protects well above $125,000.
Key personal property exemptions under Washington law include:7Washington State Legislature. RCW 6.15.010 – Exempt Property
- Motor vehicle up to $15,000
- Household goods and furniture up to $6,500 per person
- Tools of the trade up to $15,000
- All clothing, with furs, jewelry, and ornaments capped at $3,500 per person
- Private libraries and electronic media up to $3,500
- Cell phone, personal computer, and printer, fully exempt
- A wildcard of up to $10,000 for any other personal property in a bankruptcy case
The wildcard is especially useful because you can apply it to cash, bank accounts, or a tax refund. Whether the state or federal system is better depends on your mix of assets; a homeowner in an expensive county usually does better with Washington’s homestead.
One catch: to use Washington’s exemptions, you must have lived in the state for at least 730 days before filing. If you moved more recently, you use the exemptions from your previous state, or the federal set if your old state doesn’t allow non-residents to claim its exemptions.
How the Repayment Plan Works
The plan is the core document of your case. It says how much you pay each month, how long you pay, and how the money is divided among creditors. You propose it, but a judge has to approve it at a confirmation hearing.8Office of the Law Revision Counsel. 11 USC 1325 – Confirmation of Plan
Debts get paid in a specific order. Priority claims come first: domestic support obligations like child support and alimony, recent tax debts, trustee fees, and attorney fees. These are paid in full. Next come secured debts you want to keep, including mortgage arrears and car loans. Your regular mortgage payment usually continues outside the plan, while past-due amounts are rolled in. Unsecured debts, like credit cards and medical bills, get whatever is left.
Two tests set the minimum for unsecured creditors. The “best interests” test requires that they receive at least what they would have in a Chapter 7 liquidation of your non-exempt property.8Office of the Law Revision Counsel. 11 USC 1325 – Confirmation of Plan If you have no non-exempt property, that floor can be zero. For above-median filers, the second test requires committing all projected disposable income for five years. Many Chapter 13 plans pay unsecured creditors only a fraction of what’s owed, and that’s fine as long as these tests are met.
The court also checks that your plan was proposed in good faith, that you’ve filed all required tax returns, and that you’re current on any post-filing support obligations. Plans most often fail at confirmation because of feasibility: the judge isn’t convinced the proposed payment is realistic.
Stripping a Second Mortgage
Chapter 13 offers a tool homeowners can’t get in Chapter 7. If you have a second mortgage or home equity line, and the balance on your first mortgage alone is more than your home’s current market value, the court can reclassify the junior lien as unsecured debt.9Office of the Law Revision Counsel. 11 USC 506 – Determination of Secured Status The second lender loses its lien, the balance is treated like credit card debt, and any unpaid portion is discharged when you complete the plan. The math has to be clear: if there’s even a dollar of equity beyond the first mortgage, the second lien can’t be stripped.
Debts That Survive the Plan
Some debts are not discharged at the end of Chapter 13. Child support and alimony, most student loans (barring a separate hardship proceeding), debts from drunk-driving injuries, criminal fines and restitution, and certain tax obligations all survive.10Office of the Law Revision Counsel. 11 USC 1328 – Discharge Long-term secured obligations like your ongoing mortgage also continue; the plan only cures the arrears.
Filing the Case
Before you can file, you have to complete a credit counseling course from a provider approved by the U.S. Trustee Program within 180 days before your petition date.11Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor Most providers offer it online or by phone in about an hour. Skip it and your case gets dismissed.12United States Department of Justice. Credit Counseling and Debtor Education Information
Washington has two bankruptcy districts. If you live west of the Cascades, you file in the Western District, with courthouses in Seattle and Tacoma. East of the Cascades, you file in the Eastern District in Spokane.13United States Bankruptcy Court. United States Bankruptcy Court for the Western District of Washington The federal filing fee is $313, and in Chapter 13 you can pay it in installments through the plan. Attorney fees are regulated by the court, and the bulk of them typically get paid through the plan itself rather than up front, which makes Chapter 13 more accessible than it might look.
About a month after filing, you’ll attend the 341 Meeting of Creditors.14United States Department of Justice. Section 341 Meeting of Creditors Creditors rarely come. The Chapter 13 trustee runs it, puts you under oath, and verifies your paperwork. Bring a government photo ID and proof of your Social Security number. The meeting usually runs 10 to 15 minutes.
After that comes the confirmation hearing. The trustee or creditors can object if they think the plan doesn’t meet legal requirements, often arguing about disposable income or unrealistic expenses. If the judge confirms the plan, it binds you and every creditor whether they agreed to it or not. If the judge finds problems, you usually get a chance to amend.
Living Under the Plan
A confirmed plan runs three to five years, and during that time you live under real financial restrictions. You cannot take on new debt without permission from the trustee or the judge. That covers car loans, credit cards, student loans, rent-to-own deals, and even borrowing against your retirement. The only exception is a genuine emergency involving life, health, or property. Borrow without approval and your case can be dismissed. If you have a legitimate need, like replacing a car that breaks down, your attorney files a request explaining the amount, terms, and impact on your plan payments.
Tax refunds get special treatment. Most Chapter 13 trustees in Washington treat them as additional income that should go to creditors, though the specifics vary by district and by the terms of your confirmed plan. You may be required to turn over refunds above a certain threshold. Adjusting your W-4 so you get a smaller refund in the first place leaves less for the trustee to claim.
Before the court will issue your discharge, you also have to complete a second course, the debtor education (or personal financial management) course, after your case is filed.15United States Courts. Credit Counseling and Debtor Education Courses Most people finish it online. Fail to file the certificate and your discharge is blocked even if you made every payment on time.
When the Plan Stops Working
Life changes. Jobs disappear, people get sick, costs appear that nobody predicted three years earlier. Chapter 13 has safety valves.
If your income drops or expenses rise, you can file a motion to modify your confirmed plan. The modified plan has to satisfy the same legal requirements, but payment amount, length, or the distribution to unsecured creditors can change. Creditors whose claims are affected get notice and a chance to object. Courts approve modifications routinely when a debtor shows a real change in circumstances.
If things get bad enough that even a modified plan isn’t feasible, you can ask for a hardship discharge. The court will grant one only if three conditions are all met: your inability to finish is due to circumstances beyond your control, such as a permanent disability; unsecured creditors have already received at least what they’d have gotten in Chapter 7; and further modification isn’t practical.10Office of the Law Revision Counsel. 11 USC 1328 – Discharge A hardship discharge covers fewer debts than a standard completion discharge.
If none of that works, you can convert to Chapter 7 (if you pass the means test) or ask the court to dismiss the case entirely. Dismissal lifts the automatic stay and puts you back where you were before filing, minus whatever the trustee already paid out. Converting to Chapter 7 means a fresh liquidation analysis, and non-exempt property could be sold.
Discharge and What Comes After
When you make your final plan payment, the court issues a discharge order that eliminates your personal liability for most remaining unsecured debts.16United States Courts. Discharge in Bankruptcy – Bankruptcy Basics It won’t touch the non-dischargeable debts described earlier, and long-term obligations like a mortgage continue on their original terms.
The filing itself appears on your credit report for up to 10 years from the filing date.17Consumer Financial Protection Bureau. How Long Does a Bankruptcy Appear on Credit Reports? The practical credit damage usually fades well before that. Many people who complete a Chapter 13 plan qualify for a mortgage within a year or two of discharge, in part because finishing a multi-year repayment plan is something lenders recognize as discipline. The bankruptcy is often less damaging to long-term credit than the years of missed payments, collections, and judgments that came before it.