Garnishment: Can Debt Collectors Take My Paycheck?
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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.
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.
Why can someone take money from my paycheck or bank account?
If money is being taken from your paycheck or bank account, it usually means a debt collector went to court and got a judge to say you legally owe the money. This is called a court judgment.
Once they have that, they can ask the court for another legal document that tells your employer or bank to send them some of your money until the debt is paid off. This is called a writ of garnishment.
You should receive paperwork at each step that lets you know what is happening, including:
- A notice of the lawsuit when it is filed, along with copies of the legal claim
- A copy of the judge’s decision that explains how much you owe and why
- 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 full debt is paid, or a court says it has to stop.
For more about debt lawsuits, go here.
Can they take my money without telling me first?
No. Someone collecting a debt cannot take money from your paycheck or bank account without telling you ahead of time. They must go to court, get a court judgment against you, and send you paperwork before they can take any money.
So, if your money is being taken or withheld and you don’t know why, it could mean one of two things:
- There was a court decision against you that you didn’t know about,
- 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 money can they take?
They cannot take all of it, no matter how much money you owe. Your entire paycheck or bank account should never be taken.
Oregon law protects some of your money so you can pay for basic needs.
What’s protected depends on:
- How much you earn
- How often you are paid
- Whether you receive certain public benefits ( like social security, disability, unemployment, or veterans' benefits. )
Can they take my personal belongings, vehicle, or home to pay off a debt?
Yes. In some cases, a debt collector may try to take your personal belongings, vehicle, or even your home. This is sometimes called seizure or having your property seized.
While this happens less often than money being taken directly from your paycheck or bank account, it is possible.
But just like with your money, Oregon law protects some of your property so you can meet basic needs. This includes essential items you need for your job and daily life and, in some cases, your vehicle and your home.
Learn more about what kind of property is protected from garnishment.
Can I stop someone from taking my money or property for a debt?
Sometimes. Stopping or delaying a garnishment may be possible—such as when there was a mistake, the wrong kind of money or property is being taken, or there are other legal reasons.
There are a few options, both in and out of court. These include challenging the garnishment, challenging the original judgment, or working out a payment plan with the creditor.
Learn more about your options for stopping or reducing a garnishment.
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.