If you get hit with a wage garnishment in Oregon, you are looking at having 25% of your take home pay garnished!
Fortunately, you have options to stop the garnishment.
Recently, a young man called our office to see if we could help after he was informed by his HR department that he had been served with a writ of garnishment.
Of course, he was embarrassed and shaken. His net (after tax) weekly take home check was about $800, so after the garnishment, he was going to lose $200/week!
If it was hard to pay your bills before, now he was going to have a little over $800 deducted from his pay each month!
No wonder he was scarred!
So, what are his options?
If you are being hit with a wage garnishment, it didn't happen by chance!
We get calls all of the time from people who say something like, "I don't know how this happened? I never received anything!"
Before there can be a WRIT OF GARNISHMENT awarded, you had to have received a SUMMONS.
Check out those links above! You cannot ignore a summons!
But, here you are, now...
Contact the attorney who filed for the writ of garnishment on behalf of the plaintiff/creditor/debt collector.
Many times, the original creditor or the debt collector who has the account now will be willing to accept a SETTLEMENT. Click below to learn more:
But, what if you don't have funds to offer in a settlement?
Then you should be able to negotiate a STIPULATED AGREEMENT.
This is basically an agreement between you and the plaintiff that says you agree to make monthly payments and as long as you do, the attorney for the plaintiff will stop the writ of garnishment.
They (the attorney or the plaintiff) usually will work with you.
For example:
You certainly can't survive if they take 25% of you income, or in the above case, $800 a month, but you could afford $250/month (I know it won't be easy).
They will set up the Stipulated Agreement that says that you are agreeing to make a payment of $250 a month until the full balance, plus attorney fee, plus court costs, plus interest (9% in Oregon, 12% in Washington, varies by state) is paid.
But, if you miss a payment, they will put the garnishment back on so, be very disciplined to make those payments!
What if you can't afford a reasonable (usually, they are not willing to take a small payment of $25 or so) payment?
Then you may be a candidate for BANKRUPTCY PROTECTION.
Bankruptcy is usually not a bad or terrifying as you think is is. You should consult with a Bankruptcy Attorney (one that specializes in bankruptcy) to weight your options.
Still have questions? We can help:
