What Does It Mean to Be Collection-Proof or Judgment-Proof?

Certain types or amounts of income or property are protected by law. Being collection-proof means you don’t have any income or property that isn’t protected. 

This article helps you understand whether these protections might apply to you. 

These protections only apply if the debt is a consumer debt. That is, debt related to personal, household, or family expenses.  

 

 Different rules and protections may apply if your debt involves: 

• Child or spousal support.
• Federal or state taxes.
• Criminal fines or restitution. 

 Learn more about what counts as a consumer debt here. 

What happens if you don’t pay a debt? 

If you owe a debt and can't pay, the company or debt collector might take you to court. If they win the case, the court will order that you legally owe the money in a judgment. 

 The person or business that sued you can then try to collect the debt by taking: 

• Money from your paycheck.
• Money from your bank account.
• Property like a car or house.  

This process is called garnishment.  

In Oregon, the law limits garnishment on certain amounts of money and types of property. If you do not have anything above these limits, you are collection-proof. 

What property the law protects 

Can debt collectors take your income? 

Oregon law protects about $1,400 per month of income from debt collection, as of 2025. 

• The amount protected depends on how often you are paid. For example, weekly, twice per month, or monthly.
• The amount increases each year based on Oregon's minimum wage.  

Can debt collectors take government benefits? 

Debt collectors can’t take any money that comes from a protected source. This protected money is called exempt income and includes:  

• Social Security
• Disability
• Public assistance like TANF and SNAP
• Unemployment benefits
• Veterans' benefits 

Can debt collectors take money from your bank account? 

If you have money in a bank account, Oregon law currently protects a balance of $2,600. This also goes up a little each year to keep up with inflation. 

This protection works bank by bank. So, if you have a savings and a checking account at the same bank, only $2,600 total is protected across both. But if you have accounts at two different banks, each bank's account gets its own $2,600 protection. 

Read more about what to do when debt collectors go after your money.  

Can debt collectors take your property? 

Oregon law protects: 

• Basic household goods.
• Tools used for work.
• A vehicle worth $10,000 or less.
• A portion of the equity on your home, which is the total value minus the mortgage. 

See the complete list of money, personal belongings, and property protected from garnishment. 

What happens if all your money and property are protected? 

Even if you are protected, a debt collector can still take some actions. Someone trying to collect a debt can still: 

• Sue you in court.
• Get a judgment in court that says you owe the money.
• Try to have your bank account or paycheck garnished. The money that is protected will not be garnished, even if they ask.
• Take back specific items if you signed a written agreement that allows them to take it. An example is a car loan that allows them to repossess the car. 

What happens if your situation changes? 

Being protected now does not mean you will always be protected.  

A court judgment for consumer debt in Oregon lasts ten years. A debt collector can ask a judge to renew it for another ten years. 

If your situation changes, a debt collector may be able to garnish your income or property. This can happen if: 

• You get a higher-paying job.
• You buy a more valuable car or home.
• You start receiving income that is not protected. 

If your situation changes, or if you are not sure whether you are fully protected, legal help may be available. Legal help for debt issues is available at this link.