Can a Debt Collector Take My Car, Home, or Belongings?

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

When a person or business sues you for money and wins in court, they may be allowed to collect your debt by taking some of your belongings, like your car or even your home. This is called property seizure.

Seizing property is not very common. More often, people collect by taking money from your paycheck or bank account instead. For more about about protecting your wages or bank accounts go here.

This article explains when someone can take your property, what the law protects, and what you can do if someone tries to take your belongings.

Important:

• These rules apply to consumer debts: debts related to personal, family, or household expense. Different rules apply for debt related to child or spousal support, taxes, and criminal cases. For more, read our article, "What is Consumer Debt."
• In debt collection, property means anything you own, like furniture, a car, or a house.

What kinds of property are protected from garnishment?

Oregon law protects the things you need for daily life, work, and housing. Many of these protections have a dollar limit:

• If your property is worth less than the protected amount, it cannot be taken at all.
• If it is worth more than the protected amount, it can be sold, but you are entitled to keep the protected amount from the sale.

The following types of property are generally protected: 

• Tools: Up to $5,000 worth of tools that you need for your work.
• Household items: Basic things you need to live, like furniture and appliances, up to a value of $3,000.
• Vehicles: A car, truck, or other vehicle worth $10,000. This protection doesn't apply if a lender is taking back (repossessing) a car because you're behind on the loan you used to buy it.
• Wildcard: You can protect anything else worth up to $400 that doesn't fit into another protected category.

Are there protections if I own a home?

Yes. Oregon law protects part or all of the value of your home from being taken to pay a consumer debt. This is called your home equity.

Whether someone can force the sale of your home depends on:

• How much your home is worth
• How much you still owe on it
• How much of the home's value is protected by law

Homes like mobile homes, manufactured homes, residential trailers, and floating homes may also be protected, as long as they are mainly used as your residence.

Important: The amount of protection depends on your situation. If you own your home with another person who also owes the debt, you may be able to protect more.

Learn more about how these protections work in the FAQs below.

How would a debt collector try take my property? 

If the property is not protected by Oregon law, the person or business can ask the sheriff to take it (seize it).

You must get advance notice.

• Before anything can be taken or sold, you must be given written notice.
• This notice gives you time to respond, especially if you believe the property is protected or a mistake has been made.
• The sheriff cannot sell your property right away. They must follow legal steps and give you time to challenge the seizure.

Protected property cannot be sold.

• Items that are protected under Oregon law cannot be sold in a Sheriff’s Sale.

You can challenge the seizure.

If someone tries to take or sell property that is protected, you have the right to file a Challenge to Garnishment to stop the seizure or sale.

If you act quickly, you may be able to stop the seizure and keep your property.

Learn more about how to challenge a garnishment.

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. 

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.