Oregon Wage Garnishment Laws
The federal government allows for laws governing wage garnishment to be determined by states individually. In general, Oregon's garnishment laws are considered punitive for debtors and are weighted in favor of creditors.
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Significance
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A consumer can have his wages garnished if he is in breach of a contract or if a judgment is made against him. A garnishment occurs when a portion of a consumer's pay is withheld by his employer and remitted to provide repayment for a debt.
Basics
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By law, Oregon's laws permit the garnishment of an individual's wages to settle debts, such as unpaid credit card bills, child support or alimony that has gone unpaid, rent owed to a landlord or a sum awarded to another party after the loss of a civil court case. It can also occur if the individual signed a contract but did not fulfill his obligations, resulting in monies owed.
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Exemptions
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Under Oregon law, a certain percentage or sum of a person's income cannot be garnished. This amount is 75% of a person's net income, or an amount equal to 40 times the current minimum wage.
Interest Rate
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The maximum amount of interest that can be assessed in a garnishment is 9% in the state of Oregon, or the amount specified in the contract if a clause concerning interest is included in it.
Limitations
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Oregon state law limits the amount of time that a garnishment can be placed. This would be six years after an open account has fallen into arrears or six years since the contract's enforcement date. For judgments, the statute of limitations is ten years.
Considerations
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Garnishment laws in Oregon are complicated, and their interpretation can vary depending on the particular instance. It is best to contact an attorney for assistance with questions concerning Oregon's laws and their ramifications.
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