Oregon Garnishment Exemptions: What Creditors and Debtors Need to Know

Whether you're trying to collect a judgment or you're on the receiving end of one, Oregon's garnishment exemption rules determine how much money is actually reachable. The state protects a substantial portion of wages, bank accounts, and personal property from civil garnishment — and those protections got significantly stronger in 2025.

Wage Garnishment Exemptions

Under ORS 18.385, employers must exempt whichever amount is greater: 75% of the debtor's disposable earnings, or a statutory floor amount that depends on the pay period.

Disposable earnings means gross pay minus mandatory deductions — federal and state taxes, Social Security, Medicare, and mandatory retirement contributions. Voluntary deductions like health insurance or 401(k) contributions don't count.

The SB 1595 Wage Floors

The Family Financial Protection Act (Senate Bill 1595, effective January 1, 2025) raised the statutory wage floors and set them to increase on a schedule:

The carve-out: garnishments for child support, spousal support, or criminal restitution don't get the higher SB 1595 floors. They stay at the pre-2025 baseline of $254/week.

Worked Example

A debtor earning $750 in weekly disposable earnings on a general civil debt (July 2026–June 2027):

• 75% exemption: $750 × 0.75 = $562.50
• Statutory floor: $400
• Exempt amount: $562.50 (the larger of the two)
• Creditor receives: $750 − $562.50 = $187.50 per week

Now take a debtor earning only $450 in weekly disposable earnings:

• 75% exemption: $450 × 0.75 = $337.50
• Statutory floor: $400
• Exempt amount: $400 (the floor controls)
• Creditor receives: $450 − $400 = $50 per week

Bank Account Exemptions

Before 2025, a bank garnishment could freeze the debtor's entire balance, forcing them to file a challenge to claw back exempt funds. SB 1595 changed that.

Since January 1, 2025, ORS 18.785 requires financial institutions to automatically protect the base amount across all of the debtor's accounts at that institution. The base protected amount is $2,600 from July 1, 2026 through June 30, 2027. The bank performs this review without the debtor needing to take any action. Only funds above that amount are held for the creditor, subject to other exemptions.

This base account protection applies to general civil debts. It does not apply to child support, spousal support, or criminal restitution garnishments.

Federal Benefit Protections

Under federal regulations (31 CFR Part 212), banks must also perform a two-month lookback when they receive any garnishment writ. If direct deposits from Social Security, SSI, VA benefits, or Railroad Retirement hit the account during that window, those funds are automatically protected regardless of the account balance.

Personal Property Exemptions

If a creditor pursues a writ of execution against the debtor's tangible property, Oregon exempts certain categories from seizure under ORS 18.345 and ORS 18.395:

• Household goods, furniture, and personal effects up to statutory limits
• Tools, equipment, and supplies used in the debtor's occupation
• One motor vehicle up to a specified equity value
• Social Security and retirement benefits
• Workers' compensation and unemployment benefits

The exact dollar limits adjust periodically. Current figures are published by the Oregon Judicial Department.

How the Debtor Challenges a Garnishment

The person who delivered the writ must promptly mail or deliver the debtor a copy of the writ, the original Debt Calculation Form, a notice of exemptions, and a challenge form. Under ORS 18.700, the debtor generally has 30 days after delivery of the writ copy to challenge, or 120 days to challenge the exemption calculation for wages. A challenge may also claim that the amount garnished exceeds the amount owed or that the property is not subject to garnishment.

The court must set the hearing immediately and hold it as soon as possible. The hearing addresses the challenge grounds; it does not relitigate the underlying judgment.

What This Means for Creditors

As a judgment creditor, you need to write the correct, current wage exemption figures on the Wage Exemption Calculation Form (ORS 18.840) when you assemble your garnishment packet. Using outdated figures is one of the most common reasons garnishments get challenged successfully.

You also need to factor exemptions into your collection strategy. If the debtor's income is close to the statutory floor, wage garnishment may yield very little per paycheck. Bank garnishment may be more productive if the debtor maintains a balance above $2,600 — but that's a one-time snapshot, not continuing income.

The Oregon Judgment Collection Guide includes the current exemption schedules and a pre-enforcement assessment worksheet to help you evaluate which enforcement tool is worth the filing fees before you spend money on service.

See more Oregon guides →