Garnishment: Can Debt Collectors Take My Paycheck?

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

When a person or business believes you owe them money, they may want to take it directly from your wages or bank account. This process is called “garnishment,” being "garnished," or having your bank account "seized." 

It's important to know that, while it can happen, it shouldn't happen out of the blue. There are several steps a debt collector must complete, including filing a lawsuit against you in court, before they can try to take money directly from your paycheck or account.  

If you’ve been given paperwork saying this is going to happen to you, it may feel stressful and overwhelming. If you don't know why your money is being taken, or if you think you don't actually owe the debt, it can feel confusing and probably infuriating.  

Whether you are dealing with a debt that you agree is valid or a debt you aren’t so certain about, this guide is here to help. 

Below, we explain how the "garnishment" process works, including:

• The legal steps someone must follow before taking your money.
• The different protections for your income and property.
• How to challenge or stop a garnishment if there’s a mistake.  

You will also find links to more detailed articles on specific topics throughout this guide. 

Many of the protections and rules described in the articles apply only to “consumer” debts.  Consumer debts are debts related to personal, family, or household expenses like medical bills, credit card bills, and personal loans. If you are being garnished for a debt that is related to business or work expenses, child or spousal support, a criminal conviction, or back taxes, some of these rules may not apply.

//For more about what is and is not a consumer debt, go here. 

Why can someone take money from my paycheck or bank account?

Before a person or debt collector can take money from your wages or bank account, they must file a lawsuit in court, and a judge must make a ruling that you legally owe the money. 

For more about debt lawsuits, go here.

Then, they must get a legal order called a "Writ of Garnishment." That document tells your employer or bank to send them some of your money until the debt is paid off.

At each of these steps, you are supposed to get paperwork letting you know what is happening. You should receive: 

• A notice of the lawsuit when it is filed and copies of the legal claim against you.
• A copy of the judge's decision when it is made explaining how much you owe and why.
• Copies of the "garnishment" paperwork after it is sent to your employer or bank.

In Oregon, someone can continue to take money from your paycheck or bank account until the debt is fully paid off or a court orders the garnishment to stop.

Why was my money taken without warning?

Someone collecting a debt cannot take money from your wages or bank account without a court declaring that you legally owe the money. 

So, if your money is being withheld or withdrawn and you don’t know why, it could mean one of two things:

1. There was a court decision against you that you didn’t know about, 
2. The garnishment might be improper or illegal.

//For more on what to do if you have money taken for a debt and didn't get notice or you think you don't owe the debt, go here. 

How much of my paycheck can be taken?

No matter how much money you owe, your entire paycheck or bank account should never be taken. 

The law protects part of your income for basic needs. The amount that is protected depends on several things, including how much you earn, how often you are paid, and whether you receive public benefits like social security, disability, unemployment, or veterans' benefits. 

// Learn more about the protections for paychecks, bank accounts, and certain kinds of income here.

Can my personal belongings, vehicle, or home be taken to pay off a debt?

When you owe money and can’t or don't pay it back, the person or company you owe might try to collect the debt by going after your personal property, vehicle, or even your home. This is sometimes called "seizure" or having your property "seized." 

While this is more rare than money being taken directly from your paycheck or bank account, it can happen.  

However, Oregon law protects the essential items you need for daily life and, under certain circumstances, your vehicle and your home.  

// For more about protections related to personal belongings, vehicles, and homes, read the full article here.

Can I stop someone from taking my money or property for a debt?

In some cases, it is possible to reduce the amount of money being taken from you, or stop a garnishment or seizure of your personal property entirely. 

However, you usually can do this only when there has been a significant mistake or because the debt collector broke the rules or the law. 

And there are three main ways to stop or reduce the amount of money from being taken from your paycheck or bank. 

1. Challenge it in court because they are taking too much, or your income or personal items are protected. 

As described above, there are legal limits on how much money can be taken from your paycheck or bank account, including protection for specific types of income like social security and disability. In addition, there are protections for certain personal belongings, vehicles, and some homes. 

You employer or your bank are required to make sure that the amount being taken doesn't violate these rules. But if you believe that the amount being taken is more than the legal limit or includes a protected type of income (like social security) you may be able to ask a court to reduce the amount or stop it altogether. 

Similarly, if a debt collector is trying to take personal items that are in a protected category, or a vehicle or home that should be protected, you may be able to challenge it in court.  

// For more on how to challenge and stop the garnishment of protected money or personal property, go here. 

It's important to remember that you have a short amount of time if you want to challenge the garnishment for one of these reasons, so act quickly! 

Deadlines for challenging garnishment:

• If your paychecks are being garnished: You have 120 days from the date you receive the notice to file a challenge.
• If your bank account, personal items, vehicle, or home has been seized: You have 30 days from the date you are notified to file your challenge. 

2. Challenge the court's decision that you owe the debt.

In some cases, it is possible to get a court to undo the original decision that declared you owe a debt. That court decision authorizes a debt collector to take your money or personal items, and if a court undoes it, the garnishment must stop. 

There are a limited number of reasons why  a court might undo a previous decision. In nearly every case, you need to have proof that the person or business that sued you over the debt committed a serious mistake or violated the law. For example, if they didn't follow the rules for delivering you copies of the court paperwork when they first filed the lawsuit or they lied to the court or presented false information. 

// For more about challenging court decisions related to debt, see this article.

//For more about what debt collectors are not allowed to do, see this article.      

3. Negotiate directly with the other side to work out an agreement. 

Although they are not required to lower the amount without a court saying so, sometimes you may be able to work out a different payment plan or other arrangement by working directly with the debt collector, business, or person that you owe.

For more about negotiating directly with debt collectors, go here.