Understanding Wage Garnishment in Oregon

The call from your payroll department is terrifying. They tell you that they have received a garnishment and unless you take care of it, they have to take money from your paycheck until it is paid. 

Or maybe you tried to use your debit card and it was declined. When you called your bank, they said that your account had been garnished and all of your money was taken out.

A wage garnishment lets a debt collector take part of your paycheck. Under Oregon Garnishment Laws, the amount they can take is usually limited to 25% of your net pay.

We handle situations like this every day. They can’t take your entire paycheck and they may have to give back some of the money they took from your account. But there can be time limits and if you sit on your rights, you might lose them. 

If you have other debts, or debts so large you probably won’t ever be able to pay them, you might want to consider filing bankruptcy to stop the garnishment and get rid of the debts that caused it. 

The best way to handle a garnishment is to avoid having one to begin with, so if you are served with paperwork for a lawsuit, you should call an experienced attorney right away. We can advise you about whether you will be subject to garnishment and also if you should try to settle or if you should consider bankruptcy.

Wage Garnishment in Oregon

Many states do not have wage garnishment, but Oregon does. Other states have decided that taking part of your income causes too many problems and leaves people unable to pay their living expenses. 

To garnish your wages in Oregon, the debt collector has to have a judgment. They can then send a writ of garnishment to your employer. Your payroll department has to fill out paperwork to tell them how often you get paid and the date of your next pay day. Then, they have to send 25% of your net pay to the debtor collector for the next 90 days. 

After that, the debt collector has to send another writ of garnishment to start getting your wages again.

Limits on Wage Garnishment

The good news is that there are exemptions that limit how much they can get. They also allow you to get back money that they took from your bank account that was exempt like social security, unemployment or disability. There is an exemption for 75% of your net wages so the debt collector can’t take all of your paycheck. This 75% is exempt when it is in your bank account as well.

How much money can be garnished from your paycheck?

Oregon garnishment law limits the amount that can be taken to 25% of your net check. In addition, if your income is close to minimum wage, they have to leave you with at least the following amounts: $254 for any period of one week or less, $509 for any two-week period, $545 for any half-month period and $1,090 for any one-month period.

Only one garnishment is allowed at any given time, with the exception of garnishments for child support or alimony. If there is already a support garnishment in place, it also limits how much the debt collector can get. 

How long can a wage garnishment last?

The garnishment covers the first paycheck you are supposed to receive after the writ of garnishment is delivered to your employer plus all of your paycheck in the next 90 days.

Exemptions from wage garnishment

There are certain kinds of income that are completely exempt and can’t be garnished such as social security, unemployment, support, disability and retirement income. Money from these sources is also protected when it is in your account. Oregon Garnishment Law and Oregon Exemptions cover and shield money in your bank account if you can trace the funds taken to one of those sources. 

Will Bankruptcy Stop Wage Garnishment?

Bankruptcy is one of the only ways to stop a wage garnishment. While it might take a few days to get a bankruptcy case filed, as soon as it is, we can contact your employer to let them know and then they will stop taking the garnishment from your wages.

If You’re Struggling With Wage Garnishment, Consider Speaking to an Attorney

A wage garnishment can be devastating. It can leave you without enough money to pay your rent or other bills. But it is limited and it can be stopped. We recommend that you contact an experienced attorney right away if your employer tells you that your wages have been garnished or if money is taken from your bank account that can be traced to wages, social security, child or spousal support, retirement, disability income or unemployment. 

We help our clients deal with or stop garnishments every day. In some circumstances, it is possible to get back money that was paid to a debt collector under a garnishment. But it is essential that you call an attorney without delay. If you sit on your rights, you might just lose them. 

Please check out https://www.oregon-attorneys.com/ or contact us by calling 541-344-7472 or 541-214-7771.

Don’t let a garnishment hurt you or your family and leave you without enough money to pay your rent or other crucial bills. Let us help by giving you the information you need about how to deal with or even stop a wage garnishment before it leaves your finances devastated.