What Can the Oregon Circuit Court (OJD) Garnish Wages For?

In general, Oregon allows the garnishment of wages for a variety of legal debts. Some examples are consumer, tax and federal student loans, though you should note that the state has more stringent guidelines in place than most exempting certain types of income from being garnished. For example, Oregon typically protects public benefits, retirement and insurance payouts. Keep in mind that in cases of federal debt, state laws do not apply and creditors may be able to reach income and assets normally off limits.

Domestic Support

Child support and alimony payments are characterized as serious debt by both federal and state statutes. This is one area of law where the federal government allows the garnishment of Social Security payments and other types of income, which might otherwise be exempt. The obligation to support children and ex-spouses is seen as a serious obligation in the eyes of the legal system. If a writ of garnishment is issued on either of these types of debt, expect little protection from state exemption laws.

Consumer Debt

While most consumer creditors are perfectly within their legal rights to ask the Oregon Circuit Court for a writ of garnishment, and they might receive it, this kind of debt invokes the lengthy list of exemptions created by the state. Included would be credit cards and other types of debt acquired by purchasing "stuff" which was then not paid off. The only likely source of garnishment allowed by the state would be ordinary wages earned from working a job, and then the amount is limited to 25 percent of each paycheck.

Federal Debt

As mentioned, neither Oregon nor any other state can make rules regarding wage garnishment related to federal debt. The most common types of federal debt are unpaid federal taxes and student loans. If you have outstanding federal debt, expect that very few sources of income or assets will be exempt. In addition to garnishing wages, you might also find a lien attached to your personal checking account, business checking account and personal property.

Considerations

Any valid writ of garnishment issued in the state of Oregon is only good for 90 days, though it can be renewed. Any creditor, except a tax authority like the IRS, that wants to garnish your wages or assets must do so in the Oregon court system. The courts establish the validity of the debt via the writ. You will be notified if a creditor is seeking to garnish your wages, and can opt to appear in court and attempt to invalidate the claim.