Collecting money judgments in Washington is subject to some unique provisions that do not apply in other states. Take wage garnishment, for example. It can be an effective tool for judgment collection. But in Washington state, wage garnishment is subject to restrictions that make it one of the slowest forms of collection in the industry.
Judgment Collectors works with clients in Washington and a dozen other states. We would be happy to take a look at any outstanding judgments you are working on. Contact us to learn more. In the meantime, let us take a closer look at wage garnishment and how it applies to collecting Washington money judgments.
The Basics of Wage Garnishment
Wage garnishment is a tool for forcibly collecting money from an uncooperative individual. It is fairly common in the judgment collection space. But it’s also a tool that can be utilized to collect back taxes, child support and maintenance payments, and even small claims awards.
The principle is fairly simple. A writ of garnishment is produced by the court and then delivered to a local official with the authority to carry out the writ. The writ is delivered to the defendant’s employer who, upon receipt, is compelled to withhold a certain amount from the defendant’s paycheck and forward it to the creditor or a legal representative.
Washington’s Twist on Garnishment
What makes wage garnishment in Washington unique? There are two provisions in state law that may or may not apply in other states. For starters, Washington’s statute is written to protect 75% of a defendant’s disposable income. That means a judgment creditor can only garnish 25%.
The key here is disposable income. This is income that the defendant does not need to pay basic expenses. From his weekly paycheck, he covers rent/mortgage payments, car payments, food, utilities, etc. Whatever amount is left over is considered disposable income. A judgment creditor can take only 25% of that amount.
The other provision is that an employer cannot terminate a defendant simply because a judgment creditor garnishes or attempts to garnish his wages a single time. Termination is possible if the defendant’s wages are subject to garnishment three or more times within a 12-month period.
Why Creditors Choose Garnishment
Garnishment is a slow and tedious way to collect sizable money judgments. So why do Washington creditors choose this tool? The most common reason is reliability. Even though it takes time, garnishment guarantees a creditor will get paid as long as the defendant keeps working. And if a defendant gets a promotion or a new job resulting in a raise, the garnishment amount should increase.
Other judgment creditors agree to garnishment because there is no guarantee they will get paid any other way. They would rather take small amounts over a long period of time than risk getting nothing by pursuing other forms of collection.
A third reason for choosing garnishment is that it makes things easy on the defendant. Sometimes it is best not to antagonize a defendant willing to go along with garnishment. In such cases, garnishment amounts to an unofficial payment plan both parties agree to. It’s simple, easy, and not at all aggressive.
Creditors Have to Weigh the Options
Garnishment is not the only judgment collection tool in Washington. There are others worthy of consideration. For the creditor, it’s a matter of weighing all the options along with the risks and benefits each one brings to bear. The decision might not be an easy one. Then again, there is nothing easy about collecting a money judgment. That’s why Judgment Collectors exists as a business.