In the Evergreen State—from the global tech giants of Seattle and Bellevue to the agricultural and manufacturing hubs of Spokane and the Tri-Cities—revenue recovery is a high-stakes legal game. As of January 1, 2026, Washington has the most aggressive consumer protection laws in the nation. With the enactment of ESSB 5480, reporting medical debt to credit bureaus is not just restricted—it is prohibited and can lead to the debt being legally voided. You don’t just need a collector; you need a Washington-licensed strategist who knows how to navigate the $17.03 minimum wage shield and the strict 6-year statute of limitations to protect your cash flow without inviting a lawsuit.
Nexa provides 100% reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation/bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant.
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The Washington Legal Landscape
Washington rewards creditors who act quickly but punishes those who violate the state’s complex “Credit Reporting Void” rules.
| Rule Category | 2026 Washington Standard | Nexa Strategy |
| Written Contracts | 6-Year Statute | We revive high-value B2B debt from as far back as 2020. |
| Accounts Receivable | 6-Year Statute | Full recovery window via RCW 4.16.040(2). |
| Medical Debt | 6-Year Statute | Reporting is BANNED; debt possibly voided if reported. |
| Wage Garnishment | 20% Cap (Consumer) | We account for the massive $17.03/hr wage floor. |
| Mechanic’s Liens | 90-Day Filing Window | High-speed demand triggers via RCW 60.04.091. |
Critical Washington Rules for 2026:
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The ESSB 5480 Medical Ban: Effective mid-2025 and into 2026, reporting medical debt to credit agencies is prohibited. If an agency reports it, the debt is void and unenforceable. Nexa utilizes Judicial Mediation and Bank Levies to recover funds while shielding your practice from these “debt-killing” violations.
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The “Grey Area” Warning: While Washington law (SB 5480) bans medical reporting, late 2025 federal shifts have created a “grey area” regarding national preemption. Nexa uses a “Mediation-First” model to ensure you get paid without becoming a legal test case.
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The Highest Wage Floors: As of Jan 1, 2026, Washington’s minimum wage is $17.03/hr (with Seattle at $20.76/hr). Under RCW 6.27.150, we only garnish consumer debt if a debtor earns more than $596.05/week (35x min wage). We verify these thresholds to ensure your legal spend is profitable.
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90-Day Lien Cliff: For construction and trades, you have only 90 days from the last day of labor to record a lien. Nexa triggers demand mediation within 30 days to secure payment before you lose your secured status.
Cost-Effectiveness: The Nexa Advantage
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Fixed-Fee Recovery ($15/account): Ideal for early-stage B2B and medical. Debtors pay 100% directly to you.
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Contingency Fee Service (20%–40%): Performance-based recovery. No Recovery, No Fee.
Industries We Serve in Washington
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Healthcare, Dental & Medical: 100% HIPAA-compliant. We manage the ESSB 5480 transition, helping practices in the Providence and MultiCare footprints recover funds via judicial remediation rather than risky credit reporting.
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Manufacturing & Logistics: B2B recovery for aerospace and maritime suppliers. We handle high-value freight brokerage and warehousing disputes for the Port of Seattle and Port of Tacoma.
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Colleges & Universities: From the UW System to private colleges, we manage tuition recovery with a student-first mediation approach that preserves institutional reputation.
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K-12 Private & Charter Schools: Diplomatic recovery for unpaid enrollment fees, tailored for Washington’s independent school community.
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Accountants & CPA Firms: Recovery of professional service fees. We understand the local tax cycle and ensure you get paid without damaging client rapport.
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Banks & Credit Unions: Expert handling of delinquent consumer loans using Washington’s 10-year judgment renewal window and aggressive bank levy filters.
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Construction & Trades: Revenue recovery for HVAC and general contractors (Experts in RCW 60.04 Mechanic’s Liens and 90-day filings).
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B2B Commercial, Restoration & Waste Management: High-speed recovery for service providers who need cash flow restored immediately to manage the high Pacific Northwest overhead.
Recent Washington Recovery Results
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Seattle-Area Specialty Surgical Center ($98,000): A multi-specialty group recovered this amount in 65 days using a 2026-compliant “Judicial Mediation” strategy after credit reporting was prohibited.
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Bellevue Tech Logistics Firm ($62,000): Resolved a high-value unpaid industrial invoice in 22 days by utilizing Washington’s 6-year written contract statute to secure a pre-legal settlement.
Frequently Asked Questions (FAQ)
1. Is it true medical debt is voided if reported to a credit bureau?
Yes. Under Washington’s ESSB 5480, medical debt reported to a credit agency is void and unenforceable. Nexa uses Bank Levies and Property Liens to maintain leverage without risking the validity of your debt.
2. How long do I have to collect a debt in Washington?
For most written and oral contracts, the statute of limitations is 6 years. Nexa provides a free audit to identify which of your aging accounts are still legally collectable.
3. What is the limit on wage garnishment in 2026?
We can garnish up to 20% of disposable income for consumer debt, provided the debtor earns above the protected floor ($596.05/week state-wide; higher in Seattle).
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