Washington: Credit, Debt & Bankruptcy

Federal law sets a floor everywhere: the FDCPA, the FCRA, and the Bankruptcy Code. Washington then builds well above that floor in one place that matters enormously if a paycheck is on the line.

Most states let a judgment creditor reach a quarter of disposable earnings. Washington wrote a separate, more protective rule just for consumer debt — and it puts the calculation in writing on the notice the debtor receives.

Your official Washington resources

These are the state-level starting points most Washington residents dealing with debt need.

• Washington Law Help — the statewide legal aid site maintained by the Northwest Justice Project. Its debt section covers dealing with debt, getting sued over debt, and collection agencies, with a Spanish version of the same material.
• Washington State Attorney General — Credit & Debt — consumer information on credit reports, collection agencies, repossession, and credit freezes, plus the state's complaint portal.
• Washington State Bar Association — Finding Legal Help — the bar's public page. It says plainly that the WSBA does not provide legal advice or referrals to private attorneys, then routes people to the programs that do.
• U.S. Bankruptcy Courts — Washington has two federal districts: Western, serving the area west of the Cascade Mountains with courthouses in Seattle and Tacoma, and Eastern, with clerk's offices in Spokane and Yakima.

If you need	Official starting point
To respond to a debt lawsuit	Washington Law Help.
To report a collector or a credit repair company	Washington Attorney General complaint portal.
Free or low-cost legal help	CLEAR, through the WSBA public page.
Bankruptcy forms and local rules	Your district's bankruptcy court site.

Debt lawsuits in Washington

A collector that sues and wins gets a judgment, and a judgment is what unlocks garnishment and bank levies. Everything else follows from whether the case is answered.

This guide does not state a single statewide number of days to respond. The deadline is printed on the summons and complaint that were actually served, and that document controls. Washington Law Help publishes a dedicated section on getting sued over debt for exactly this reason.

Missing the deadline lets the creditor ask for a default judgment. Responding instead forces the creditor to prove the debt is real, correctly calculated, and still within the limitations period.

Start with what to do when you are sued for a debt and the debt lawsuit response checklist. Then confirm the specific deadline and local procedure with the court clerk or with legal aid.

Statute of limitations basics

Washington splits the clock by the kind of obligation.

RCW 4.16.040 gives six years to sue on a contract in writing, on a liability arising out of a written agreement, and on an account receivable. The statute defines an account receivable broadly: any obligation for payment incurred in the ordinary course of the claimant's business or profession, whether or not earned by performance.

RCW 4.16.080 gives three years to sue on a contract or liability that is not in writing and does not arise out of a written instrument — with an express exception pointing back to the account-receivable rule.

That exception matters. The six-year account-receivable category sweeps in a lot of ordinary consumer billing, so the three-year rule is narrower than it first looks.

An expired period does not apply itself. It is generally a defense a person has to raise. Read how the statute of limitations on debt works before making any decision about an old account. This guide does not state a Washington rule for what restarts a clock — confirm that with an attorney or legal aid.

Wage garnishment and protected income

Here is where Washington separates itself. Federal law in 15 U.S.C. §1673 protects the greater of 75 percent of disposable earnings or 30 times the federal minimum hourly wage. RCW 6.27.150 sets several rules instead of one:

Type of judgment	Exempt amount, the greater of
Consumer debt	80% of disposable earnings, or 35 times the state minimum hourly wage.
Private student loan debt	85% of disposable earnings, or 50 times the highest minimum wage in the state.
General rule for other debts	75% of disposable earnings, or 35 times the federal minimum hourly wage.
Spousal maintenance order	50% of disposable earnings.

The consumer-debt row is the one most credit card and medical debt cases land in, and it uses the state minimum wage rather than the federal one. Washington's minimum wage is set by state law and changes, so the dollar result changes with it.

The state's official notice form repeats the same math in plain language. Washington Courts form WPF GARN 01.0450, Notice of Garnishment and of Your Rights, tells the debtor that for consumer debt the exempt amount is the greater of 80 percent of disposable earnings or 35 times the state minimum hourly wage.

That same notice explains how to claim an exemption. Fill out the enclosed claim form and mail or deliver it. If the plaintiff does not object, the property claimed as exempt must be released no later than 10 days after the plaintiff receives the form. If the plaintiff does object, the law requires a hearing no later than 14 days after that.

Bank accounts get separate treatment. The notice lists benefit funds: TANF, SSI, Social Security, veterans' benefits, unemployment pay, and a federally qualified pension, IRA, or 401(k). An account holding only that money may be claimed as fully exempt. It may be partly exempt even when other money was mixed in. Our wage garnishment guide covers the federal baseline and how exemption claims generally work.

Bankruptcy in Washington

Bankruptcy is federal, but it runs through local courts. The Western District covers the area west of the Cascades from Oregon to the Canadian border, with courthouses in Seattle and Tacoma. The Eastern District covers the rest, with clerk's offices in Spokane and Yakima.

Washington did not opt out of the federal exemption menu. The Western District's own exemptions page states it directly: a debtor can choose to use either the state exemptions or the federal exemptions, but cannot mix and match between the two. It adds that a filer may lose property by using the wrong set, and that a married couple filing together doubles the exemptions.

There is a residency condition. To claim an exemption under Washington law, the court says the debtor must have been domiciled in Washington for the 730 days immediately before filing. Otherwise the law of an earlier state of domicile is used.

Washington's personal property exemptions live in RCW 6.15.010 and were amended recently, so the dollar figures are worth confirming with the court, legal aid, or a bankruptcy attorney rather than any static article.

For the big picture, start with our bankruptcy hub, the Chapter 7 guide, and filing without a lawyer. If bankruptcy is one option among several, debt relief options compares the paths.

Free and low-cost legal help

Many Washington residents qualify for free help and never use it. The WSBA's public page routes people to CLEAR. The name stands for Coordinated Legal Education, Advice and Referral, and it helps low-income residents with civil legal problems. The bar lists a toll-free line at 888-201-1014 for callers outside King County. Callers inside King County are sent to the 211 Legal Referral and Information Hotline.

Washington Law Help hosts the self-help guides and forms behind those calls. Many counties also run volunteer lawyer programs. County bar associations in Clark, King, San Juan, Snohomish, Pierce, and Thurston counties run their own referral services. Nationally, the LSC legal aid finder covers every state.

Common mistakes to avoid

A few errors show up again and again.

• ✕Using the federal 25 percent garnishment figure to plan a budget. For consumer debt Washington exempts the greater of 80 percent of disposable earnings or 35 times the state minimum hourly wage.
• ✕Ignoring the garnishment notice because the math looks fixed. The state form explains how to file an exemption claim, and it sets deadlines on the creditor to release funds or get a hearing.
• ✕Assuming an old bill is past the three-year clock. Washington gives six years to sue on an account receivable, which is defined broadly in RCW 4.16.040.
• ✕Mixing benefit money with other deposits and assuming the account is still fully protected. The state notice says such an account may be only partly exempt.
• ✕Guessing at bankruptcy exemptions. Washington filers choose the state set or the federal set but cannot mix them, and a 730-day residency rule decides which state's law applies.
• ✕Paying a credit services organization up front. In Washington that is only allowed if the company holds a $10,000 surety bond and a trust account.

Credit repair companies in Washington: registration, bond, and how to check

Washington regulates credit repair firms under the Credit Services Organizations Act, chapter 19.134 RCW. There is no state license or registry to search, but the rules are strict.

A credit services organization may not take any money before the agreed work is fully done. There is one way around that. The company must hold a $10,000 surety bond from a surety admitted to do business in Washington. It must also keep a trust account at a federally insured bank or savings and loan in the state (RCW 19.134.020). The bond runs to the state and to consumers. A consumer can sue on it, including in small claims court.

The Act was strengthened in 2023. A credit services organization may not file a dispute, or tell a consumer to file one, without a good faith belief that it is accurate. It must send a monthly statement of the work it did. And it may not write to a credit bureau, creditor, collector, or regulator without the consumer's prior written say-so (RCW 19.134.020).

Contracts must be in writing, dated, and signed. The consumer can cancel before midnight of the fifth day after the transaction, with a refund within ten days (RCW 19.134.060). A violation is a gross misdemeanor. It is also an unfair business practice under the Consumer Protection Act (RCW 19.134.070).

The statute even prints the notice a company has to give. It says no one has the right to have accurate, current, and verifiable information taken off a credit report. Not the consumer, and not any credit repair company.

How to check a company: ask for the name and address of the surety company, which RCW 19.134.050 requires in the information statement, then search the CFPB complaint database.

How to complain: the Washington Attorney General's complaint portal — the same address the statute itself directs companies to print — and the CFPB.

The federal floor everywhere: the Credit Repair Organizations Act (15 U.S.C. §1679) bans advance fees, requires a written contract, and gives a three-business-day right to cancel. How to vet an offer is on credit repair services.

Finding a bankruptcy attorney in Washington

Washington has two federal bankruptcy districts — Western and Eastern — and a case is filed in the one serving the county where the filer lives. Each district site posts local rules, local forms, and pro se information.

The state bar does not refer people to private attorneys itself. Its Finding Legal Help page says so directly and instead lists county bar association referral services in Clark, King, San Juan, Snohomish, Pierce, and Thurston counties, along with volunteer lawyer programs. Because those services set their own fees, this guide does not quote a consultation price.

If income is limited, start with CLEAR at 888-201-1014 outside King County, or 211 inside it. The LSC legal aid locator finds the funded program for any address. The NACBA member directory lists consumer bankruptcy attorneys by ZIP code. The ordered path and the questions to ask before paying are on how to find a bankruptcy attorney near you.

Frequently asked questions

Can my wages be garnished in Washington for credit card debt?

Yes, with a judgment, but Washington shields more than federal law does. RCW 6.27.150 exempts, for a consumer-debt garnishment, the greater of 80 percent of disposable earnings or 35 times the state minimum hourly wage. Federal law protects only 75 percent or 30 times the federal minimum wage, so the Washington calculation leaves a larger amount untouched.

What is Washington's statute of limitations on credit card debt?

RCW 4.16.040 gives six years to sue on a contract in writing and on an account receivable, which the statute defines as any obligation for payment incurred in the ordinary course of the claimant's business or profession. RCW 4.16.080 gives three years for a contract not in writing, but it expressly carves out the account-receivable category, so the six-year clock covers a lot of consumer billing.

How do I claim a garnishment exemption in Washington?

The state's Notice of Garnishment and of Your Rights tells the debtor to fill out the enclosed claim form and mail or deliver it. If the plaintiff does not object, the funds or property claimed as exempt must be released no later than 10 days after the plaintiff receives the form. If the plaintiff objects, the law requires a hearing no later than 14 days after that.

Is my bank account protected in Washington if it holds Social Security?

The state garnishment notice lists benefit funds: TANF, SSI, Social Security, veterans' benefits, unemployment pay, and a federally qualified pension, IRA, or 401(k). An account holding only that money may be claimed as fully exempt. The notice says such an account may be only partly exempt if money from other sources went into it.

How long do I have to respond to a debt lawsuit in Washington?

This guide does not state a single statewide number of days. The deadline is printed on the summons and complaint actually served, and that document controls. Washington Law Help publishes a section on getting sued over debt, and the court clerk can explain filing procedure without giving legal advice.

Can Washington bankruptcy filers use the federal exemptions?

Yes. The Western District's exemptions page states that a debtor can choose either the state exemptions or the federal exemptions but cannot mix and match between the two. To use Washington's set, the court says the debtor must have been domiciled in Washington for the 730 days immediately before filing.

Where do I find legal aid in Washington?

CLEAR, the Coordinated Legal Education, Advice and Referral program, assists low-income Washington residents with civil legal problems at 888-201-1014 outside King County, with callers inside King County directed to the 211 Legal Referral and Information Hotline. Washington Law Help, maintained by the Northwest Justice Project, hosts the self-help guides and forms.

What happens if I do not respond to a debt lawsuit in Washington?

Missing the deadline on the summons lets the creditor ask for a default judgment, and a judgment is what unlocks wage garnishment and bank account garnishment. Responding instead forces the creditor to prove the debt is real, correctly calculated, and still within the limitations period.

Do credit repair companies have to be registered in Washington?

No. Chapter 19.134 RCW has no state license or registry. It does bar a company from taking money before the work is fully done, unless it holds a $10,000 surety bond and a trust account in Washington. It also requires a written contract with a five-day right to cancel. A violation is a gross misdemeanor and an unfair business practice, and federal CROA rules apply on top.

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