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A Major Victory in Washington: Court Upholds RCW 6.15.010(1)(d)(viii) and Overrules Trustee's Objections to Our Clients' Exemption

We are proud to share a significant win for our clients — and for debtors across the State of Washington. On July 31, 2026, the United States Bankruptcy Court for the Eastern District of Washington entered an order overruling a chapter 7 trustee's objections to our clients' claim of exemption, upholding the constitutionality of Washington's bankruptcy-specific personal injury exemption, RCW 6.15.010(1)(d)(viii). (In re Parker, Case No. 25-02208-FPC7, ECF No. 47)

The Dispute: Can Washington Protect Personal Injury Claims in Bankruptcy?

Our clients filed a chapter 7 bankruptcy petition and claimed as exempt a pending personal injury claim under the Camp Lejeune Justice Act of 2022, relying on Washington's exemption statute. The chapter 7 trustee filed three separate objections, ultimately arguing that RCW 6.15.010(1)(d)(viii) — which allows debtors in a bankruptcy case to exempt the proceeds of a personal injury claim without a dollar cap — may be unconstitutional because it is a bankruptcy-specific exemption. The trustee contended the statute violated the Supremacy Clause and the Bankruptcy Clause of the United States Constitution.

The stakes were high. The constitutional challenge was serious enough that the Court certified the question to the Washington Attorney General under 28 U.S.C. § 2403(b).

Our Argument: The RCW Is Constitutional and Protects Washington Debtors

Our office, through associate attorney Celina Cardenas, stood firm on behalf of our clients. We argued that Washington's exemption scheme is exactly what Congress contemplated: Section 522(b) of the Bankruptcy Code expressly permits states to opt out of the federal exemption scheme and define their own exemptions. We maintained that RCW 6.15.010(1)(d)(viii) is constitutional, valid, and enforceable — not just for our clients, but for all similarly-situated debtors who file for bankruptcy in Washington.

The Court's Ruling

The Honorable Frederick P. Corbit agreed. After supplemental briefing and review of the record, the Court held that RCW 6.15.010(1)(d)(viii) is constitutional because it applies uniformly to all debtors who petition for bankruptcy in Washington. Drawing on authority such as Sticka v. Applebaum (9th Cir. BAP) and Richardson v. Schafer (6th Cir.), the Court explained that the Constitution does not prohibit states from creating exemption schemes that distinguish between debtors who have filed for bankruptcy and those who have not — because, as the Supreme Court put it long ago, "uniformity is geographical, and not personal."

The result: the trustee's objections were overruled, and our clients were held entitled to exempt their personal injury claim in full under RCW 6.15.010(1)(d)(viii).

Why This Matters for Washington Debtors

Personal injury claims can be protected. Washington debtors in bankruptcy may exempt the proceeds of a personal injury claim under RCW 6.15.010(1)(d)(viii), which imposes no dollar cap (subject to certain liens and subrogation claims).
The statute survived a constitutional challenge. This ruling gives Washington debtors and practitioners meaningful guidance that this powerful exemption stands on solid constitutional ground.
A fresh start should not cost you your recovery. Filing for bankruptcy should not force injured people to surrender compensation meant to make them whole.

Congratulations to Celina Cardenas

Celina Cardenas, associate attorney at Majors Law Group, P.C. — Celina Cardenas, Associate Attorney

This case was filed and litigated by our associate, Celina Cardenas, who did an amazing job navigating three trustee objections, a constitutional certification to the Washington Attorney General, and supplemental briefing before the Court. We are incredibly proud of her advocacy and of the outcome she secured for our clients.

Facing a Trustee Objection or Considering Bankruptcy in Washington?

If you have a pending personal injury claim and are considering bankruptcy in Washington, the exemptions you choose can make an enormous difference. Majors Law Group, P.C. handles bankruptcy cases across the Eastern and Western Districts of Washington. Call us at (855) 603-3300 or start your case online for a free consultation.

Every case is unique, and outcomes depend on the specific facts and law involved. This post is for general informational purposes and is not legal advice.