Is my personal injury settlement protected in a Washington bankruptcy?

Yes. Under RCW 6.15.010 as amended effective July 1, 2025, personal injury proceeds are exempt without a dollar cap in Washington bankruptcy cases. If you were injured in an accident and received (or expect) a settlement, filing bankruptcy in Washington does not hand that money to your creditors.

This is a major advantage over the federal exemption set, which caps the personal bodily injury exemption at $31,575 (plus a separate exemption for loss of future earnings to the extent reasonably necessary).

You must still disclose any pending or potential injury claim in your bankruptcy schedules — hiding a claim can cost you both the claim and your discharge. Our firm handles both bankruptcy and personal injury, so we coordinate the two correctly.