What To Do When You Can't Afford Your Garnishment
If money is being taken from your paycheck or bank account to pay a debt, this is called a garnishment. A garnishment can add a lot of stress and make it hard to cover basic needs. Go here for an overview of how garnishment works.
As overwhelming as it might feel, there are ways to reduce or stop garnishment. Depending on your situation, you may be able to negotiate a deal, challenge the garnishment, cancel the court judgment, or file for bankruptcy.
Continue reading or use the links below to jump to the section that fits your situation.
Jump to a section:
- Option 1: Try to make a deal with the business or person you owe
- Option 2: Challenge the garnishment in court
- Option 3: Stop garnishment by filing for bankruptcy
- Option 4: Try to cancel the court decision that says you owe money
- How to get help
Option 1: Try to make a deal with the business or person you owe
Consider talking directly with the business or person you owe money to. They may agree to pause or lower the garnishment if you set up a repayment plan. They might also agree to accept a smaller amount all at once to settle the debt.
They don't have to agree, but it's worth asking, especially if you have something to offer.
If you do come to an agreement, be sure to get it in writing.
Option 2: Challenge the garnishment in court
This is the main legal tool you can use to stop or reduce a garnishment in Oregon. But it only works in certain situations.
In Oregon, the law protects a portion of your paycheck and bank account from garnishment. Some types of payments, like Social Security or veterans' benefits, are protected completely.
A challenge to garnishment tells the court that something is wrong with the garnishment. This usually means they are trying to take money that is protected by law, or they are taking more than allowed.
- You cannot file a challenge just because the garnishment is causing financial hardship.
- The court can only stop a garnishment if the money is legally protected.
Examples of protected income include:
- The protected portion of your paycheck
- Social Security, disability, VA benefits, unemployment benefits, and others
- Child support or spousal support you receive
Learn more about protections for your money here.
How to file a challenge to garnishment:
- Submit a form to the court and send a copy to the person or business you owe.
- You may have to go to court and explain why the money is protected.
- If the debt collector already has your money, it is especially important to act quickly.
- Bring any documents that show the money is protected by law.
Learn how to file a challenge to garnishment here.
What to do if they are going after something you own:
If someone is trying to take something you own—like a car, furniture, or other belongings—the process is different.
- You must file a challenge to execution with the court.
- This is a separate legal process for stopping a debt collector from taking or selling off your property.
Learn more about protections for property here.
Important deadlines:
There are short timelines for challenging a garnishment:
- If your wages are being garnished: You have 120 days from the date of the garnishment notice to file your challenge.
- If your bank account or property is being garnished: You have 30 days from the date of the garnishment notice to file.
Option 3: Stop garnishment by filing for bankruptcy
Filing for bankruptcy usually stops garnishments right away.
When you file for bankruptcy, debt collectors must immediately stop garnishing your money or trying to collect the debt, as long as the debt is covered by the bankruptcy.
Bankruptcy is a big step. It can hurt your credit and make it harder to borrow money later. But it may be worth considering if:
• You have multiple debts or garnishments
• You can't afford to pay what's being taken
• Other options haven't worked
Learn more about bankruptcy and whether it makes sense for you.
Option 4: Try to cancel the court decision that says you owe money
This is different from challenging the garnishment, which is covered in the previous section.
Before someone can garnish your paycheck or bank account, they must sue you in court and win.
- The court's decision is called a judgment.
- If you don't respond to the lawsuit or miss your court date, the court may decide automatically for the other side. This is called a default judgment.
In rare cases, you can ask the court to set aside (which means to cancel) a judgment or default judgment.
This only works in a few specific situations, such as:
- You were never told about the lawsuit, and you have a valid reason why you shouldn’t have to pay (called a defense)
- The wrong person was sued (it's not your debt)
- The business or person suing you broke the law or made a serious mistake
If the court agrees to cancel the judgment, the garnishment must stop.
This is not easy to do. You will usually need strong proof, and you may need legal help to file the right papers.
Learn more about court decisions related to debt.
Learn more about what debt collectors are not allowed to do.
How to get help
If you're struggling with a garnishment, considering bankruptcy, have questions about a lawsuit against you, or have other questions about debt, help may be available.
Use the Legal Help Directory to find free or low-cost legal services in your area.