Can Washington ESD unemployment benefits be garnished for debts?

It's credit card debt from before I lost my job. So that should be protected then?

Yes, regular credit card debt cannot garnish unemployment benefits in Washington. The creditor would need to wait until you're employed again.

Good point about responding to court papers. I definitely don't want to ignore anything legal.

Yeah ignoring court stuff is never a good idea even if your benefits are protected

That's really helpful to know the specific law. I was worried about my medical bills but sounds like those are protected too.

Correct, medical debt falls under general consumer debt protection. Just make sure you're not mixing unemployment funds with other money in your bank account.

Wait why does it matter if you mix the money? Once it's in your account isn't it all the same?

How long did it take to get through with that service? I've been trying to call Washington ESD for days.

Much faster than calling directly. I got through to an agent within an hour instead of spending days trying to call.

Good for you! It's important to know your rights. Too many people get scared and agree to payment plans they can't afford.

exactly! they try to scare you but the law is on our side for once

That's smart. I should probably set up a separate account just for my unemployment payments.

I did this after my benefits got frozen when my bank couldn't tell what money was protected. Separate account makes everything clearer.

Exactly. It's called 'tracing' - you need to be able to show which funds are protected unemployment benefits versus other income.

Federal tax debt is different. The IRS can potentially garnish unemployment benefits, though they usually try other collection methods first.

Ugh that's what I was afraid of. Guess I need to work out a payment plan with them.

Definitely contact the IRS about a payment plan. They're usually willing to work with people who are unemployed and show good faith effort to pay.

Yeah child support and spousal support are the big exceptions. Those obligations don't pause just because you're unemployed.

Makes sense though. Kids still need to eat even if the parent is out of work.

Federal student loans can potentially garnish unemployment benefits, but they usually go after tax refunds and wages first. Private student loans typically cannot garnish UI benefits in Washington.

Mine are federal loans so I guess I need to be careful. Thanks for the clarification.

Look into income-driven repayment plans if you haven't already. With unemployment income your payments might be $0.

Just remember to keep good records and don't ignore any court paperwork. The protections are strong but you still need to respond appropriately to legal notices.

Definitely. I'm going to respond to the notice and let them know the funds are protected unemployment benefits.

Once you're employed again, yes, they can garnish your wages for any valid debts, including ones that accrued during unemployment. The protection only applies to the actual unemployment benefits.

That's what I figured. So it's really just a temporary protection while you're receiving UI benefits.

Right, it's not debt forgiveness, just protection of the unemployment benefits themselves. The debt doesn't go away.

Was it worth it? I'm getting frustrated with trying to call them directly.

Totally worth it for me. Got my questions answered in one call instead of wasting days trying to get through the regular way.

This happened to me! Bank froze my account and I had to provide documentation to prove the funds were protected UI benefits. Was a huge hassle.

Exactly why I always recommend the separate account approach. Saves so much headache later.

I'm definitely going to set up a separate account this week. Thanks for all the advice everyone.

Those programs ended in 2021, but yes, they had the same garnishment protections as regular unemployment benefits while they were active.

Good to know. I still had some questions about money I received back then.

Agreed, their website could be much clearer about garnishment protections. Most people don't know to look up RCW 50.40.020.

Yeah most people aren't lawyers and shouldn't have to research statutes just to understand their basic rights.

This is exactly why I ended up using Claimyr - sometimes you just need to talk to a real person who knows the rules instead of trying to interpret legal language.

Glad this was helpful! It's one of those things that can really stress people out when they don't know their rights.

Same here. I feel so much better knowing my UI benefits are protected from my credit card debt. Thanks everyone for the detailed explanations.