Stop Wage Garnishment in Oregon: 4 Legal Ways to Protect Your Income

Did you receive a debt collection lawsuit and fail to respond? Maybe you missed your court date for the outstanding debt hearing. A garnishment order may be coming your way soon.

Courts issue garnishment orders to creditors after they win debt collection cases. Oregon’s wage garnishment laws limit how much creditors can take from your paycheck. Some provisions still allow them to collect their money legally.

You can still fight a garnishment notice. Oregon law provides multiple ways to protect your income and stop wage garnishment.

Oregon Wage Garnishment Laws Protect Your Income

Federal and state laws govern wage garnishment in Oregon. Oregon Revised Statutes Section 18 outlines how creditors and employers must handle wage garnishments.

Here are the key protections you have:

• Maximum amount: Creditors can take only 25% of your disposable income. They can also garnish the amount your weekly earnings surpass 30 times the federal minimum wage ($13.50/hr).
• Exemptions: Social Security benefits, unemployment benefits, and workers’ compensation are protected from garnishment.
• Notice and hearing: Creditors must give you ten days written notice before starting wage garnishment. You can request a hearing to challenge the order.
• Employer responsibilities: Your employer must notify you immediately when they receive a garnishment order.
• Garnishment priority: Child support and spousal support take precedence over credit card debt and medical bills.

Understanding these laws increases your chances of stopping or reducing wage garnishment. Our partner Solo can help you navigate the garnishment process and protect your rights.

Object to the Wage Garnishment Order

You can challenge a garnishment order through the legal objection process. When you receive notice from your employer, you have ten days to file an objection with the court.

Common grounds for objecting include:

• You dispute the debt amount
• The garnishment exceeds legal limits
• Your income is exempt from garnishment
• You are the head of household supporting your family
• Your earnings fall below the federal poverty line

The court will schedule a hearing to review your objection. Both you and the creditor will present evidence and arguments during the hearing.

If the court finds in your favor, the garnishment will be reduced or dismissed. If the court upholds the original order, garnishment will continue.

Have another debt where you’ve fallen behind on payments? Send a Debt Validation Letter to stop collector calls.

File a Claim of Exemption in Oregon

A claim of exemption allows you to protect part or all of your earnings from garnishment. You must follow specific legal steps to succeed.

Here’s the process:

1. Download the Claim of Exemption form from the Oregon State Courts website or your county court clerk’s office.
2. Complete the form with all required information. List the specific exemptions you’re claiming, such as public assistance or head of household status.
3. Gather supporting documentation like financial records and bank statements. These documents prove your claim.
4. File the Claim of Exemption form with the court clerk’s office. You may need to pay a filing fee unless you qualify for a waiver. Serve the creditor with the same documents.
5. Attend the hearing if the creditor objects to your exemption claim.
6. Wait for the court’s decision. The court may uphold the garnishment or adjust it in your favor.

Claim of Exemption Example

Candy faces wage garnishment for an outstanding debt with American Credit. Her weekly take-home pay is $500. The garnishment order requires 25% of her disposable income to be withheld ($125 per week).

However, Candy’s income is below the federal poverty guidelines for a family of four ($156.50 per week). After filing for an exemption, the court reviewed her income records. The court dismissed the garnishment order completely.

Settle Your Debt to Avoid Garnishment

Debt settlement offers the creditor a portion of what you owe in one payment. The creditor agrees to forgive the remaining balance and drop the legal claim.

Debt settlement benefits both parties. The creditor receives partial payment without court costs or garnishment paperwork. You avoid court and put the debt behind you without fear of future lawsuits.

Debt collectors often negotiate even at the garnishment stage. Court procedures for garnishment are time-consuming and expensive. Creditors frequently consider settlement offers that exceed what they’d collect through garnishment.

Our partner Solo provides a tech-based approach to debt settlement. The software helps you send and receive settlement offers until you reach an agreement. Once you agree, Solo helps you manage documentation and transfer payment securely.

You can negotiate settlement amounts while keeping your financial information private. Many Oregon consumers have settled debts for 40-60% of the original balance.

Consider Bankruptcy as a Last Resort

Bankruptcy should be your final option. Consider this path if you cannot sustain your family’s needs with income remaining after garnishment.

A credit counselor in your county can help you choose between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 discharges most unsecured debts like credit cards and medical bills. Chapter 13 creates a payment plan to repay debts over three to five years.

Both bankruptcy types automatically stop wage garnishment through an automatic stay. Creditors must stop collection activities immediately after you file.

Bankruptcy has long-term consequences for your credit. It remains on your credit report for seven to ten years. Explore all other options before choosing bankruptcy.

Take Action to Stop Oregon Wage Garnishment

Oregon law provides several ways to protect your income from garnishment. You can object to the garnishment order, file a claim of exemption, settle the debt, or file bankruptcy.

Act quickly when you receive a garnishment notice. You have only ten days to object or file exemptions. Missing deadlines limits your options.

Debt settlement often provides the fastest resolution without court appearances or extensive paperwork. Settlement stops garnishment and resolves your debt permanently.

You don’t need to face wage garnishment alone. Resources and partners can help you navigate Oregon’s garnishment laws and protect your income.