Creditors use a variety of informal and formal means to recover debts. One of the last measures a creditor will resort to is wage garnishment, which is a legal process to have some of your wages withheld to pay a debt.
Federal and Washington state laws provide for wage garnishment. In this blog post, we focus on how Washington garnishment laws work and what you can do if a creditor tries to have your wages garnished.
Stone Rose Law represents clients seeking bankruptcy. To learn more about your choices if you are the subject of a garnishment effort in Washington, call us at (480) 739-2448 or contact us online to speak with an experienced bankruptcy attorney.
What is the Nature of a Wage Garnishment?
A wage garnishment is a court order. Sometimes you may hear it referred to as a wage attachment. The garnishment order directs your employer to withhold a certain amount of money from your pay and to send it to the creditor that obtained the order of garnishment from the court.
With few exceptions, such as past-due tax obligations, past-due federal student loans, or family support obligations like spousal or child support, a creditor cannot have your wages withheld without going to court first to obtain an order of garnishment through a judgment against you.
Washington Garnishment Laws
Washington state’s wage garnishment law is found in the Revised Code of Washington (RCW) Chapter 6.27, along with its subordinate sections. These sections govern specific aspects of garnishment, including:
- The process of obtaining a garnishment judgment and order or garnishment
- Priorities of garnishment debts
- How to calculate the amount of your wages that can be subject to garnishment
We take a closer look at each of these aspects below.
The Washington Wage Garnishment Process
Federal Law vs Washington Law
The first question is whether a federal garnishment law exists that covers the debt in question. If one does, then it applies over Washington laws.
- Federal laws apply to garnishments for child support obligations and spousal support.
- Federally sponsored student loans are also subject to federal garnishment law. This type of garnishment is known as administrative garnishment.
- The United States Treasury’s Internal Revenue Service can garnish your wages to pay back taxes without obtaining a court order of garnishment.
Outside of specific situations in which federal government law controls, Washington garnishment laws apply.
Obtaining a Personal Judgment Against You
If Washington garnishment laws apply, then the first step a creditor must take is to obtain a personal judgment against you that you owe the debt. Examples of creditors who may seek such a personal judgment are credit card issuers, banks and other issuers of personal loans or lines of credit, health care providers, car loan finance companies, and businesses that have provided services to you that are unpaid or otherwise past due.
The process of obtaining a garnishment judgment is generally the same as other lawsuits:
- The creditor files a complaint in a Washington court that has jurisdiction over you and the subject matter of the complaint.
- You will then be served with a copy of the complaint and a summons, which will state how much time you have to file a response to the complaint (usually 20 days if you receive the complaint in person).
- In your response to the complaint, you can raise any legal defenses you may have.
- If you do not reply to the complaint within the time frame of the summons, then the creditor can make a motion in court to obtain an order and judgment of default against you.
- If you respond to the complaint before the summons deadline expires, then the court will set a trial date to consider the garnishment complaint and the arguments you raised in your response.
- If the court decides in your favor based on the evidence and arguments at the hearing, it can rule in your favor and dismiss the complaint.
Obtaining a Wage Garnishment Order
If the court rules in favor of the creditor, then it will issue a final order and court judgment against you and file the judgment with the court clerk.
Can a Creditor Garnish Your Wages Without a Judgment Under Washington Law?
Under RCW 6.26.010, under limited circumstances, a creditor can get a court order to garnish your wages before obtaining a judgment. These situations include:
- If you are not a Washington resident or are about to move out of the state
- If you have concealed yourself so that you cannot be served with a complaint and summons
- If you have removed or are about to remove any of your property from the state to delay or defraud your creditors
Challenging a Wage Garnishment Order
One defense against a garnishment order is to request an exemption from it. To request an exemption, you must file a Claim of Exemption from Wage Garnishment and a financial statement with the levying officer.
What Happens After I File a Wage Garnishment Exemption?
The creditor can effectively agree to your Claim of Exemption by not responding to your request. In this event, the levying officer will tell your employer to stop withholding funds from your paycheck. If the creditor opposes the exemption, then the court will hold a hearing in which you can offer evidence and witnesses to show that you need the funds subject to garnishment.
If the court grants your exemption request, you will receive the funds that have been garnished, and future wage garnishment will cease or be reduced. If the judge rules in favor of your creditor, the wage garnishment will proceed.
Obtaining a Writ of Execution
A creditor who obtains a personal judgment against you on the debt will next request a writ of execution from the court to serve on your employer.
The wage garnishment order provides your employer with all the information it will need to begin garnishing your wages, starting with the first paycheck you receive after 10 days from the date of service of the writ. A wage garnishment usually lasts for 60 days. It can be renewed with a new writ of garnishment if the debt remains unpaid.
Can Your Employer Fire You Because of Wage Garnishment?
Under federal law, your employer can’t discharge you if you have one wage garnishment.
Under RCW 6.27.170, your employer cannot terminate your employment because a creditor garnished or tried to garnish your wages, unless you are served with three or more separate garnishment orders within 12 consecutive months.
What Happens If You Change Jobs?
If you change jobs while wage garnishment is active, then your creditor will request a new writ of garnishment for your new employer.
Priorities of Wage Garnishment Obligations
If multiple creditors obtain wage garnishment judgments and writs of execution against you, then Washington law prioritizes which get paid first if your wages cannot cover them all:
- First Priority – Wage and Earnings Assignment Order for Support
- Second Priority – Earnings Withholding for Support
- Third Priority – Earnings Withholding for Unpaid Taxes
- Fourth Priority – Earnings Withholding for Elder or Dependent Adult Financial Abuse
- Fifth Priority – Earnings Withholding Order (examples are judgments for unsecured debts like credit card balances, personal loans, and medical bills)
If the employer receives more than one writ with the same priority, the first one received will take precedence.
How Much Income is Subject to Garnishment?
Unless otherwise provided below, under RCW 6.27.150, up to 25% of your weekly earnings or 35 times the federal minimum wage amount, whichever is less, is subject to garnishment.
Examples of disposable earnings include:
- Hourly wages or your salary income
- Overtime pay
- Bonuses and commissions
- Vacation pay and sick pay
Examples of mandatory deductions from your disposable earnings include:
- Federal income tax (Washington has no state income tax)
- Medicare and Social Security withholdings
- Mandatory retirement plans
Voluntary deductions from your pay are not considered to be withholdings for calculating disposable income. Examples of voluntary withholdings include health insurance premiums, voluntary retirement accounts, or life insurance.
Garnishment for Consumer Debts
For consumer debt garnishments, much of your disposable earnings can be garnished, which is the lesser of:
- 20% of your weekly disposable earnings, or
- The amount of your weekly disposable earnings exceeds 35 times the federal minimum hourly wage.
Garnishment for Private Student Loan Debts
For private student loan debt, the garnishment limit is the lesser of:
- 15% of your weekly disposable earnings, or
- The amount by which your weekly disposable earnings exceed 50 times the highest minimum hourly wage law in the state at the time the earnings are payable.
Child Support and Spousal Maintenance Debts
All court orders for child support include an automatic income withholding order.
For child support and spousal maintenance, federal law allows up to 50% of your disposable earnings to be garnished for child support if you are supporting another spouse or child, or up to 60% if you are not. An additional 5% of your disposable earnings can be subject to garnishment if you are more than 12 weeks behind in your support obligations.
How To Stop Wage Garnishment Under Washington Wage Garnishment Laws
If a creditor is seeking wage garnishment against you, then you have multiple possible defense options available. Some of these, like responding to the legal complaint and summons and seeking an exemption from garnishment, we have already mentioned above. Here are some other options that you and your Washington bankruptcy attorney may consider.
Pay the Underlying Debt
Paying the debt in full stops a wage garnishment.
If you cannot pay the debt in full, then you may still be able to negotiate with the creditor to settle the debt for a lesser amount. For example, you may be able to offer the creditor a lump sum payment as an accord and satisfaction of the total debt within a short-term time frame of 30 to 60 days.
For example, if the IRS is garnishing your wages because of overdue taxes, you may be able to make an offer in compromise or set up a payment plan.
Challenge the Garnishment
If you believe that an error exists in the way the garnishment process took place, or that your disposable income has been improperly calculated, or that any other problem exists with your garnishment, then you can file an objection with the court.
File for Bankruptcy Relief
Filing for bankruptcy petition under Chapter 7 or Chapter 13 of the United States Bankruptcy Code creates an automatic stay that halts all debt collection efforts by creditors, including wage garnishments by current judgment creditors.
In a Chapter 7 bankruptcy, if the underlying debt is dischargeable, then the creditor cannot restart the wage garnishment when you complete your Chapter 7 bankruptcy case.
A Chapter 13 bankruptcy filing will create a debt repayment plan under which you will repay all or some of your debts over a three-to-five-year period. When your payment plan is complete and your case is closed, then creditors will not be able to garnish your wages over any unpaid sums left from the original debt.
Note, however, that although a bankruptcy filing is effective in stopping wage garnishment, it will not remove any liens connected with secured debts.
Are You Facing Wage Garnishment in Washington?
If you are experiencing mounting debt and one or more of your creditors is threatening you with garnishment, or has already begun garnishment proceedings against you in a Washington court, we recommend you contact a bankruptcy attorney to help you understand your options and protect your legal rights.
You can reach Stone Rose Law at (480) 739-2448 or use our online contact form to speak with an experienced bankruptcy attorney about what you can do in response to a garnishment lawsuit or to put a stop to existing garnishment of your wages.
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