Alliance Settlement helps Washington residents negotiate unsecured debts like credit cards, personal loans and medical bills down to an amount they can afford. Before you decide, it helps to know how Washington handles lawsuits, garnishment and old debts.
| Washington debt facts at a glance | |
|---|---|
| Statute of limitations (credit cards) | 6 years |
| Wage garnishment for consumer debt | Up to 20% |
| Notable protection | Debt Adjusting Act |
How long can creditors sue in Washington?
Washington's statute of limitations on credit card debt is 6 years. An expired statute of limitations is a defense you usually have to raise in court, so never ignore a lawsuit, even on an old debt.
Can creditors garnish your wages in Washington?
Washington limits garnishment for consumer debt to the lesser of 20% or the amount above 35 times the state minimum wage. Garnishment requires a court judgment first, which is one reason resolving debts before a lawsuit matters.
Other Washington consumer protections
Washington's Debt Adjusting Act caps fees and bars keeping fees until creditors are notified.
How debt relief companies are regulated in Washington
Washington regulates debt adjusting by statute. Under federal rules, debt settlement companies that sell services by phone can’t charge fees until they’ve settled or changed at least one of your debts and you’ve made a payment under that agreement. Ask any company how it is licensed or authorized to serve Washington residents, and get every term in writing.
How debt settlement works with Alliance Settlement
- Talk to us. A no-obligation call to understand your situation.
- One monthly deposit. Instead of juggling several payments, you set aside one program deposit.
- Creditor negotiations. We work account by account toward reduced payoffs.
- Written settlements. You approve each settlement before it’s paid, and receive written confirmation.
Settlement isn’t right for everyone. It can affect your credit and may have tax consequences on forgiven amounts. Learn more in does debt settlement hurt your credit?, or get a free consultation.
Frequently asked questions
How long can a creditor sue me for credit card debt in Washington?
Washington's statute of limitations on credit card debt is 6 years. Keep in mind the clock limits lawsuits, not collection calls or credit reporting. Before paying on an old account, find out whether it's past the deadline.
Can my wages be garnished for credit card debt in Washington?
Washington limits garnishment for consumer debt to the lesser of 20% or the amount above 35 times the state minimum wage.
Will debt settlement hurt my credit?
Usually yes at first, mostly because of missed payments during the program, but scores often begin to recover after accounts are resolved. Read our guide: does debt settlement hurt your credit?
Does Alliance Settlement work with Washington residents?
Yes. Alliance Settlement works with clients throughout Washington, including Seattle, Spokane, Tacoma and Vancouver, by phone and online.
This page provides general information, not legal or tax advice. Laws change; consult a qualified professional about your situation.