District of Columbia Bankruptcy Exemptions

Federal bankruptcy exemptions available? YES

Though not included in the District of Columbia statutory homestead exemption, a court has held that property owned by a married couple as a tenancy by the entirety is exempt if only one spouse owes the debt.

The references to District of Columbia statutes are to the District of Columbia Code.

Resources:

United States Bankruptcy Court, District of Columbia

Washington DC Bankruptcy Attorneys

DC Bankruptcy Exemptions
Assets	Exemption	State Statute
Homestead	Residence of debtor or debtor’s dependents: all.	15-501(a)(14)
Insurance	Life insurance contract (unmatured) other than credit life insurance: all.	15-501(a)(5)
	Disability benefits: all.	15-501(a)(7); 31-4716.01
	Life insurance payments: all.	15-501(a)(11)
	Other insurance proceeds: up to $200 per month for a maximum of 2 months for the person providing the principal support for a family; up to $60 a month for 2 months for all others.	15-503
	Life insurance proceeds or avails: all.	31-4716
	Group life insurance policy/proceeds: all.	31-4717
	Life insurance proceeds: all if policy has a clause prohibiting the proceeds from being used to pay the creditors of the beneficiary.	31-4719
	Benefits from a fraternal benefit society: all.	31-5315
Miscellaneous	Child support and alimony payments: all.	15-501(a)(7)
Pensions	Federal pension exemptions.
	Judge pensions: all.	11-1570(f)
	Stock bonuses, annuity payments, pensions payments, and profit-sharing plans: all.	15-501(a)(7)
	IRA’s, Keoghs, and other ERISA-qualified benefits: up to maximum tax-deductible contribution.	15-501(a)(9)
	Public school teacher pensions: all.	38-2001.17; 38-2021.17
Personal Property	Motor vehicle: up to $2,575.	15-501(a)(1)
	Household furnishings, appliances, musical instruments, books, clothing, and pets: up to $425 for each item and $8,625 total.	15-501(a)(2)
	Professionally prescribed health aids.	15-501(a)(6)
	Family pictures: all.	15-501(a)(8)
	Family library: up to $400.	15-501(a)(8)
	Recovery for loss, including pain and suffering of the debtor or someone the debtor depends upon: all.	15-501(a)(11)
	Recovery for wrongful death: all.	15-501(a)(11); 16-2703
	Food: enough to last 3 months.	15-501(a)(12)
	Holdings in cooperative association: up to $500.	29-928
	Deposit for a residential condominium: all.	42-1904.09
	Burial and cemetery funds: all.	43-111
	Savings account for higher education: all.	47-4510
Public Benefits	General assistance: all.	4-215.01
	Blind, aged, or disabled aid: all.	4-215.01
	Crime victim’s compensation benefits: all.	4-507(e); 15-501(a)(11)
	Social Security benefits: all.	15-501(a)(7)
	Veterans’ benefits: all.	15-501(a)(7)
	Workers’ compensation benefits: all.	32-1517
	Unemployment compensation benefits: all.	51-118
Tools of Your Trade	Seal and documents of notary public: all.	1-1206
	Tools needed for trade or business: up to $1,625.	15-501(a)(4)
	Furniture, tools, and library of artist or professional: up to $300.	15-501(a)(13)
	Tools of mechanic: up to $200.	15-503(b)
Wages	Recovery for loss of future earnings: all.	15-501(a)(11)(E)
	Earnings other than wages, such as pensions and retirement funds: up to $200 per month for head of family; up to $60 per month for 2 months for those not head of family.	15-503
	Wages earned but not yet paid: at least 75% of wages and pension payments. The bankruptcy judge may allow a larger percentage for low-income debtors.	16-572
Wildcard	Any property: up to $850.	15-501(a)(3)
	Any property: up to $8,075 of unused homestead exemption.	15-501(a)(3)

Case Studies: District of Columbia Bankruptcy Exemptions

Case Study 1: Tenancy by the Entirety Exemption

Sarah and John, a married couple in the District of Columbia, faced financial difficulties. When considering bankruptcy, they discovered that their property, held as a tenancy by the entirety, may be exempt from one spouse’s debt. This exemption protected their property during the bankruptcy process.

Case Study 2: Bankruptcy Protection in Washington DC

Mark, a resident of Washington DC, found himself overwhelmed by debt and sought bankruptcy protection. With the guidance of experienced Washington DC bankruptcy attorneys, he successfully filed for bankruptcy, utilizing federal bankruptcy exemptions to safeguard his assets.

Case Study 3: Understanding of District of Columbia Bankruptcy Laws

Lisa, facing financial challenges in the District of Columbia, sought legal advice to navigate the bankruptcy process. Through consultations with a knowledgeable attorney, she gained a clear understanding of the District of Columbia Code and discovered resources available through the United States Bankruptcy Court.