Losing a Collection Tool – Legislature Hamstrings Prejudgment Writs

Let’s say Mr. X owes you an overdue balance under a contract in Washington. Let’s say that debt is unsecured, e.g. a past-due promissory note with no collateral. Until a few weeks ago, that unsecured debt was actually… kind of secured? Yes. Under RCW 6.25.030(10) and RCW 6.26.010(1), you could sue Mr. X and immediately ask the court to give you prejudgment writs of attachment and garnishment.

What are prejudgment writs of attachment and garnishment? They are orders from the court to the sheriff to seize a debtor’s property – “attachment” for real and personal property, and “garnishment” for financial accounts and wages. In a normal breach-of-contract collection, you would need to litigate against Mr. X, and eventually obtain a judgment, before you could seize his assets. But with prejudgment writs, if you show the court that you are more likely to eventually win the case than lose, you can seize Mr. X’s assets (i.e. attach and garnish) much faster, oftentimes shortly after filing the lawsuit.

Unfortunately for creditors (and fortunately for debtors), the Washington legislature just amended the statute to omit subsection (10), which allowed prejudgment writs for contract debts. Effective July 23, 2023, creditors have a more limited scope of facts under which they may obtain prejudgment writs. Those circumstances are now mainly limited to out-of-state debtors, or debtors who committed fraud or are about to abscond with assets.

But creditors, take heart! The law still puts plenty of debt collection tools in our toolbelt. If we can help, please call (425) 776-4100, or email info@beresfordlaw.com.