Can a Creditor Take My Car, Home, or Belongings?

This article is being revised and edited. Please check back soon to read the final version. 

If a creditor has a court judgment (a court decision saying you owe money) against you, they may try to collect the money you owe. This could include taking money from your paycheck or bank account—or, in some cases, trying to take your belongings, your car, or even your home. This process is sometimes called property seizure. 

But Oregon law protects certain property that you need to live, work, and stay housed. These protections exist so that even if you owe money, you aren’t left without basic needs.  

What kinds of property are protected from garnishment?

Oregon law protects some of your most important belongings — especially the things you need to live or work.

If your property is protected, a creditor cannot take it—even if they have a court judgment.

The following types of property are generally protected: 

• Tools of the trade: Equipment you need for your job is protected, up to a certain value. 

• Household goods: Items you need to live, like furniture and appliances, are protected. 

• Vehicles: Starting January 1, 2025, if your vehicle is worth $10,000 or less, it cannot be taken to pay a debt. (Note: This doesn’t apply to repossession by a lender if you’re behind on a car loan) 

What happens if a creditor tries to take my property? 

If the property is not protected by Oregon laws, a creditor can ask the sheriff to take it (seize it). 

The sheriff can then sell that property in a public auction called a Sheriff’s Sale. The money from the sale goes toward paying the debt listed in the court judgment.

What Is a Sheriff’s Sale? 

A Sheriff’s Sale is a public auction run by the local sheriff’s office. It’s used to sell seized property and pay off court-ordered debts.

Here’s what you need to know: 

1. You must get advance notice. Before the sale, you should receive a written notice. This gives you time to respond—especially if you believe something is wrong, like if they’re trying to sell protected property.

2. Protected property can’t be sold. Items that are protected under Oregon law cannot be sold in a Sheriff’s Sale.

3. You can challenge the garnishment. If they try to sell protected property, you can file a Challenge to Garnishment to stop the sale. Learn more about how to challenge a garnishment that's trying to take your protected property. 

Can they take my home? 

Sometimes—but there are important protections. 

If you own and live in your home,  Oregon law protects some or all of its value — this is called your equity. Whether or not a creditor can force the sale of your home depends on how much equity you have. 

 Equity is the value of your home minus what you still owe on it (like your mortgage). 

Here is a simple example how equity works: 

• Your home is worth $250,000 

• You owe $150,000 on your mortgage  

• Your equity is $100,000 

Creditors can’t make you sell your home to pay a judgment unless your equity is more than the protected limit. If your equity is less than that amount, your home is safe. 

How Much of My Home Equity Is Protected? 

As of January 1, 2025, the protected amount is:

• Individual Homeowners: Up to $150,000. 

• Joint homeowners (if you own the home with another person): Up to $300,000. 

Starting July 1,2025, these amounts will change each year based on the cost of living. If the cost of living goes up (or down) the protected amount of home equity will also. 

This protection is called the homestead exemption. 

Going back to the example above: Because your $100,000 in equity is under the protected limit—whether you're an individual or joint homeowner—your home would be fully protected as of January 1, 2025. That means the creditor cannot force a sale to pay the debt.

Does the home protection also cover mobile homes or floating homes? 

Yes. The homestead exemption applies to many types of homes, including: 

• Mobile homes

• Manufactured homes  

• Residential trailers 

• Floating homes (houseboats) 

To qualify as a protected floating home, it must be: 

• Moored to a pier or pilings, and 

• Used mainly as a place to live (not as a boat) 

As long as your home meets this definition and your equity is under the protected amount, it is safe from garnishment.

Summary 

Creditors can’t take everything—even if they have a court judgment against you. Oregon law protects the things you need to live, work, and stay housed.

If a creditor is trying to take property you believe is protected:

• Learn your rights
• Act quickly
• And try to get legal help if you need it 

You can use the Legal Help Directory to find free or low-cost legal services in your area.