Is it possible to stop a wage garnishment in Oregon?
Yes! But, you need to know how the process works.
When you have unpaid debt, and for the purpose of this blog, we're talking about unsecured debts, such as:
- Credit cards
- Store cards
- Medical bills
- Personal line of credit (not tied to your home)
- Private Student Loans
Your creditors have a right to collect monies that you promised to repay when you borrowed the funds.
If they cannot get you to start paying by calling and mailing nasty letters, they may decide to turn your account over to a collection agency.
As you know, debt collectors can be very annoying and most of the time, violate the Fair Debt Collection Practices Act or the FDCPA.
If you feel that they have violated the protection and rights you have through the FDCPA, you should contact your state's attorney generals office and file a complaint.
If the debt collection agency cannot get you to pay, they may decide to file a COMPLAINT in your county court for the debt you owe.
If they do, you will receive a SUMMONS either personally delivered or by registered mail.
DON'T FREAK OUT!!!
The summons will state that you have about 30 days to provide and ANSWER to the court or the PLAINTIFF (the creditor filing the claim) may proceed with further legal action.
The ANSWER would be your argument that you do not owe the debt. Most of the time there is no use in paying the fee or hiring an attorney to produce an ANSWER, but if you feel that you do not owe the CLAIMED DEBT, then you should challenge with an ANSWER.
If you do nothing (as most people do), the court will generally award the plaintiff with a DEFAULT JUDGMENT. In other words, they win by default as you are admitting that you owe the debt.
If you do nothing, it is very likely that the attorney for the plaintiff will apply for a WRIT OF GARNISHMENT that will be sent to your employer.
Now, the Writ of Garnishment ONLY APPLIES TO THOSE WHO RECEIVE W-2 wages!
You cannot be garnished if you receive income from:
- Social Security benefits
- Supplemental Security Income (SSI)
- Welfare or public assistance
- Spousal support or child support
- Public or private pensions
- Veterans benefits and/or loans
- Disability proceeds of life insurance policies
- Cash surrender value of life insurance policies
- and many others
Click Here for a complete list of EXEMPT INCOME in Oregon.
But if you receive notice from your employer that you will be garnished (25% of your net check in Oregon!), you still may be able to STOP THE GARNISHMENT.
You will need to contact the attorney's office for the plaintiff and try to get them agree to let you make reduced payments (not the 25% of your net income) until the entire balance is repaid, including attorney fees and 9% (Oregon).
This is called a STIPULATED AGREEMENT, and if you are successful, the attorney may have you sign a copy of the Stipulated Agreement and file it with the court.
If you fail to make a payment according to the Stipulated Agreement, then the Stipulated Agreement is revoked, and you now will be garnished again!
If all of this sounds like TOO MUCH, we can help. We have helped many, many people stop wage garnishment. Give us a call at 1-877-492-4109 or Click on the link below:
