Garnishment in Oregon: What Can a Debt Collector Take?
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 bank account.
Whether you are dealing with a debt that you agree you owe 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 case, or taxes, the rules are different.
When can someone take money from my paycheck or bank account?
A debt collector can't just start taking money from your paycheck, even if you miss payments or have a debt sent to collections. There is a series of steps, some of them required by law, that must happen first.
- You fall behind on payments, and the business may contact you asking to pay.
- The debt goes to a debt collector or debt buyer, who tries to get you to pay.
- If unsuccessful, they file a lawsuit in court.
- If you lose or don't respond, the court can decide you legally owe the money in a document called a judgment.
- With that judgment, the debt collector can tell your employer or bank to send them part of your pay or bank account.
- In rare cases, they may go after a car, house, or other valuable property.
For more on debt lawsuits and judgments, go here.
How much of my money can they take?
No matter how much money you owe, they can't take your whole paycheck or empty your bank account. Oregon law protects some of your money so you can pay for basic needs.
Here's what is protected:
- A minimum amount of your paycheck can't be touched. And they can only take a portion of anything you make above that protected limit.
- A minimum balance of $2,500 in your bank account.
- All money that comes from certain protected payments, like Social Security, disability, veterans' benefits, and others.
Go here for more details on how your money may be protected from garnishment.
Can they take my car, house, or personal belongings to pay off a debt?
Yes. While this happens less often than garnishing pay or a bank account, a debt collector can try to take valuable personal belongings, a vehicle, or even your home.
- 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 daily life and your job, like work tools.
- It also includes some protections for a car or house, depending on how much it is worth.
Learn more about protections for your things and property here.
Can I stop someone from taking my money or property for a debt?
Sometimes, but only in a few situations. Here are the best options:
1. Work out a deal directly with whoever you owe (no court required)
You can try to negotiate a payment plan or offer to pay a smaller amount in full instead of being garnished.
- Get every agreement in writing.
- Keep proof of all payments.
- If the creditor agrees, ask them to send a written notice to your employer or bank to stop the garnishment.
2. Challenge the garnishment (but you have to act fast)
You may be able to stop or reduce the money being taken if:
- The money or property is protected by law.
- They are taking more than allowed.
- The debt is not yours, or there's another serious mistake.
Deadlines for challenging garnishment:
- Paychecks: You have 120 days to file your challenge from the date you receive the notice.
- Bank accounts, vehicles, or property: You have 30 days from the date you are notified.
Learn how: Go here for more on when you can challenge a garnishment and how to do it.
3. Ask the court to cancel the judgment (rare and more difficult)
If the court decided the case against you without hearing your side, called a default judgment, you may be able to ask the court to cancel it. You can only do this if:
- You had a very good reason for not responding to the case (for example, you never got the court papers or you were in the hospital), and
- You have a legal reason you should not have to pay the debt (called a defense).
For more, read our article "Can I Do Anything About a Default Judgment Against Me?"
If you went to trial or arbitration and lost, it is very hard to undo the decision. Talk to a lawyer right away.
Frequently Asked Questions:
Any money that comes from certain protected categories is always protected, in addition to a minimum portion of your paycheck or bank account:
- Social Security (retirement, SSDI, SSI)
- VA benefits
- Unemployment
- Public assistance (TANF/SNAP)
- Child support or spousal support you receive
- Most pensions
- And more.
For more about how protections from garnishment work, go here.
For a complete list of all money and property that is protected, go here.
Usually, yes, but not always right before the garnishment happens. Before someone can garnish your pay or bank account, they almost always have to sue you and get a court judgment.
- You should receive notice of the lawsuit when it is filed and a chance to respond.
- If they win, you should also be given a copy of the court's decision, called a judgment.
But they don't have to give you advance warning before the garnishment begins. Instead, your employer or bank is required to notify you after they receive paperwork telling them to send part of your money to the debt collector.
If you don't respond to a lawsuit against you by the deadline, the court can decide in favor of the other side without hearing from you. This is called a default judgment.
- Even though you weren't present, the default judgment allows the winning side to take money from your pay or bank account, just like any court judgment.
To find out if there is a judgment against you:
- Check any paperwork you've received about the debt to see if a court or court case number is mentioned.
- Go to your nearest court and ask in the records department to search for any "civil" cases (which means not criminal) against you.
Go here for more details about default judgments, including the limited ways you can challenge one.