How to Stop Wage Garnishment in Oregon (2025 Guide)

A garnishment notice hits your desk at work. Your employer pulls you aside. Starting next paycheck, 25% of your take-home pay goes straight to a creditor. Rent is due. Groceries cost money. Panic sets in.

Oregon law gives creditors real power to take your wages, but it also gives you tools to fight back. The clock starts ticking the moment you receive that notice. You have exactly 10 days to file an objection with the court. Miss that window, and the garnishment sticks until the debt is paid.

This guide walks you through Oregon's wage garnishment rules and the specific steps to stop or reduce a garnishment order. Most people who challenge garnishments successfully cite one of five exemptions. You may qualify for more protection than you think.

Oregon's Wage Garnishment Limits: What Creditors Can Actually Take

Oregon Revised Statutes Section 18.385 sets a hard cap on garnishments. Creditors cannot take more than 25% of your disposable income in a single pay period. Disposable income means your gross pay minus mandatory deductions like taxes, Social Security, and court-ordered child support.

There's a second protection: if your weekly earnings are less than 40 times the current state minimum wage ($14.70 as of January 2025), creditors can only garnish the amount above that threshold. Do the math: 40 × $14.70 = $588 per week. If you earn $600 weekly after taxes, only $12 is subject to garnishment that week.

Oregon uses the higher of those two calculations to protect you. That said, these limits apply to most consumer debts. Child support, spousal support, federal student loans, and unpaid taxes follow different rules and often take priority over other garnishments.

Income That's Completely Off-Limits

Certain income sources are exempt from garnishment under Oregon law:

• Social Security benefits
• Supplemental Security Income (SSI)
• Unemployment benefits
• Workers' compensation
• Veterans benefits
• Disability payments
• Public assistance (SNAP, TANF)

If any of these benefits make up part or all of your income, creditors cannot touch them. The catch: once those funds hit your bank account and mix with other money, they can become vulnerable to bank account levies. Keep exempt funds in a separate account when possible.

How Garnishment Actually Starts in Oregon

Creditors cannot garnish your wages just because you stopped paying. They need a court judgment first. The process typically looks like this:

1. Creditor sues you. They file a debt collection lawsuit in circuit court. You receive a summons and complaint by mail or process server.

2. You fail to respond or lose in court. If you ignore the lawsuit or the judge rules against you, the creditor wins a default judgment or a judgment after trial.

3. Creditor requests a garnishment order. After winning, they file a Writ of Garnishment with the court and serve it on your employer.

4. Your employer withholds wages. Oregon Revised Statutes 18.735 requires employers to notify you immediately and begin withholding within one pay period.

Once your employer receives the garnishment order, they must send you a written notice within three business days. That notice includes the creditor's name, the debt amount, and instructions for objecting. The 10-day clock starts when you receive that notice, not when your employer does.

Five Ways to Stop or Reduce Wage Garnishment in Oregon

1. File an Objection Within 10 Days

Oregon gives you 10 calendar days from the date you receive the garnishment notice to file a written objection with the court. This is not optional if you want to fight the garnishment. Your objection must state specific grounds for challenging it.

Valid objections include:

• The garnishment exceeds Oregon's 25% cap
• Your income is entirely exempt (Social Security, disability, unemployment)
• You are head of household and your income supports dependents
• The debt was already paid or discharged in bankruptcy
• You were never properly served with the original lawsuit
• Your income falls below the federal poverty line for your household size

File your objection using Oregon Judicial Department Form 18.930. Submit it to the same court that issued the garnishment order. Send copies to your employer and the creditor's attorney. The court will schedule a hearing within 10 to 15 days.

At the hearing, bring proof: pay stubs, bank statements showing exempt income, evidence of household expenses, or documentation of dependents. Judges grant full or partial relief in roughly 40% of contested garnishment hearings when debtors show up with documentation.

2. Claim Head of Household Exemption

Oregon law provides extra protection if you are the primary financial provider for a household. Under ORS 18.345, you can claim head of household status if you provide more than 50% of the support for a dependent spouse, child, or other qualifying relative.

This exemption can reduce or eliminate garnishment depending on your income level. To claim it, file a Head of Household Exemption Form (Form 18.352) with the court within 10 days of receiving the garnishment notice. You'll need to prove:

• You live with at least one dependent
• You provide more than half of that person's financial support
• Your income is necessary to maintain the household

Courts typically grant this exemption when the debtor shows that garnishment would leave the household below subsistence income levels. This is one of the most successful objections in Oregon garnishment cases.

3. Negotiate a Settlement Before Garnishment Begins

Once a creditor has a judgment, they hold leverage. But garnishment is expensive and slow for them too. Collection agencies often accept 40% to 60% of the judgment amount as a lump sum settlement.

Call the creditor or their attorney. Offer to pay a reduced amount in exchange for them withdrawing the garnishment order. Get the agreement in writing before you send money. The settlement should state that upon payment, the creditor will file a Satisfaction of Judgment with the court and release the garnishment.

If you cannot afford a lump sum, propose a payment plan. Creditors may agree to $100 to $200 monthly payments and suspend the garnishment as long as you stay current. Miss a payment, and the garnishment resumes.

4. File for Bankruptcy

Bankruptcy triggers an automatic stay under 11 U.S.C. § 362. The moment you file, all collection activity stops, including wage garnishment. Your employer must cease withholding wages within one to two pay periods after receiving notice of your bankruptcy filing.

Chapter 7 bankruptcy discharges most unsecured debts (credit cards, medical bills, personal loans) within four months. Chapter 13 allows you to repay debts over three to five years at amounts you can actually afford. Both options permanently stop garnishment on dischargeable debts.

Bankruptcy does not eliminate child support, spousal support, most student loans, or recent taxes. Those garnishments continue. But for consumer debt garnishments, bankruptcy is the fastest permanent solution.

Oregon has generous bankruptcy exemptions. You can protect $40,000 in home equity, $3,000 in a vehicle, and most retirement accounts. If you're facing garnishment, explore whether bankruptcy is right for you.

5. Request a Payment Plan From the Court

If you cannot afford a lump sum settlement and do not want to file bankruptcy, ask the court to convert the garnishment into a voluntary payment plan. File a motion requesting relief from garnishment and proposing a monthly payment amount you can afford.

Courts grant these motions when you demonstrate financial hardship and propose a reasonable payment schedule. Bring evidence: pay stubs, a household budget, rent or mortgage statements, utility bills, and medical expenses. The creditor can object, but judges often approve payment plans that show good faith.

Once approved, the garnishment stops as long as you make payments on time. Miss two consecutive payments, and the creditor can reinstate the garnishment without another hearing.

What Happens If You Do Nothing

Ignore the garnishment notice, and the withholding continues until the debt is paid in full, plus interest and creditor's fees. On a $5,000 judgment, that could mean two years of reduced paychecks.

Oregon allows post-judgment interest at 9% per year. A $5,000 debt grows by $450 annually. Creditors can also add attorney fees and court costs, which can push the total owed up by 20% to 30%.

Garnishment does not hurt your credit score directly (the original debt and judgment already did that). But it can cause secondary financial problems: bounced checks, late fees on other bills, or even job loss if your employer views garnishment as a hassle.

Employer Responsibilities and Your Job Protection

Your employer cannot fire you because of a single wage garnishment. Federal law (15 U.S.C. § 1674) prohibits termination for one garnishment. Oregon law mirrors this protection under ORS 18.385.

However, if you have multiple garnishments from different creditors, Oregon does not protect you from termination. Employers can legally fire an employee who has two or more active garnishment orders because of the administrative burden.

Your employer must comply with the garnishment order. They withhold the specified amount from each paycheck and send it to the court or creditor. Employers who fail to comply can be held liable for the full debt amount.

Priority of Multiple Garnishments

If you have more than one garnishment order, Oregon law establishes a priority system under ORS 18.375:

1. Child support and spousal support always come first. Creditors cannot garnish wages until support obligations are paid.

2. Federal tax liens and federal student loans take second priority.

3. State tax debts come next.

4. Consumer debts (credit cards, medical bills, personal loans) are paid last.

If your wages are already being garnished for child support, a credit card garnishment cannot begin until the support garnishment ends or your income increases enough to allow both.

Bank Account Levies: A Related Threat

Creditors with a judgment can also levy your bank account. Oregon law allows a one-time seizure of funds up to the judgment amount. Your bank freezes the account and sends the balance to the creditor after a 10-day waiting period.

You have the same 10 days to file an exemption claim. If the funds in your account came from Social Security, unemployment, or other exempt sources, file an Exemption Claim Form (Form 18.850) immediately. Bring proof of the source of funds to the hearing.

Unlike wage garnishment, bank levies are one-time events. But creditors can levy your account multiple times if they keep finding funds.

Bankruptcy as a Permanent Solution

If you are facing garnishment from multiple creditors or the debt is large enough that garnishment would take years to satisfy, bankruptcy may be the cleanest solution.

Chapter 7 stops garnishment immediately and discharges the underlying debt. Most people complete the process in 90 to 120 days. Chapter 13 stops garnishment and allows you to repay debts at reduced amounts over three to five years.

Oregon's bankruptcy exemptions protect most essential assets. You will not lose your home, car, or retirement savings in most cases. If your debt total exceeds $10,000 or includes multiple judgments, check if you qualify for bankruptcy relief.

Take Action Before the First Paycheck is Garnished

You have 10 days. That's the window to file an objection, claim an exemption, or negotiate a settlement. Once that period passes, stopping the garnishment becomes harder.

Gather your financial documents now: pay stubs from the last two months, proof of exempt income, evidence of household expenses, and documentation of dependents. If you qualify for head of household or the garnishment exceeds legal limits, file your objection immediately.

If bankruptcy is the right move for your situation, talk to an Oregon bankruptcy attorney this week. Most offer free consultations and can file an emergency petition to stop garnishment within 24 hours.

Garnishment is not the end. It's a leverage point. Use it.