3 Tips on How to Stop Wage Garnishment in Oregon

how to avoid wage garnishment in oregonA wage garnishment can be devastating!

Here are 3 tips on how to stop a wage garnishment:


There are several steps that a creditor must take before they can apply for a writ of garnishment.

First, a creditor must hire an attorney that is licensed within your state to file COMPLAINT with your local, county court.

A COMPLAINT is an official/legal statement that you owe a certain amount to someone.

For example, let's say you have a Visa card and due to a severe financial circumstance...

  • Loss of employment
  • Illness
  • Divorce
  • Death of a spouse
  • Disability

... you find yourself unable to make any payments.

After a few months of calls and letters (HOW TO STOP COLLECTION CALLS), a creditor may choose to file a complaint.

Once the complaint is filed, a SUMMONS is prepared and delivered to you.

The SUMMONS will state that the creditor (called the Plaintiff) will state exactly what you (the Defendant) owe.

It will also state that you have a certain number of days to give an ANSWER.

An answer, is a legal document that you file with the court (yes, there is a significant fee to file an answer) whereby you state why you do not owe the debt.

But, in 99.9% of the time, most people know they owe the debt.

Unfortunately, this summons and legal procedure could have been avoided if you had contacted the collector or a Debt Management Company .


Once a complaint has been filed and a summons delivered, the creditor or collector has had to pay extra money to the court/attorney/summons delivery company, etc.

They may not be in a postilion to offer much of a settlement, but you should always try.

If a settlement cannot be reached, most of the time a STIPULATED AGREEMENT can be arranged.

A stipulated agreement is an agreement that you make to pay back (usually 100%) of the debt plus fees and interest over a certain length of time.

The reason you would do this is to avoid the court awarding the collector (Plaintiff) a DEFAULT JUDGMENT, which will be awarded to the plaintiff by default, since you are not going to contest that you owe the debt.

It is only AFTER the judgment is awarded that the creditor can apply for a writ of garnishment.

My point is that you shouldn't PANIC just because you receive a SUMMONS and/or a JUDGMENT.

We have been able to help hundreds of clients avoid wage garnishment, but the key is to TAKE ACTION!

I know we are talking about WAGE GARNISHMENT, but once a judgment is awarded, a collector can come after your BANK ACCOUNT....UNLESS...


Here are a few of the types of "income" that are exempt from garnishment in Oregon:

  • Social Security
  • Supplemental Security Income (SSI)
  • Disability benefits
  • Welfare or any public assistance
  • Spousal or child support
  • Pensions (public or private)
  • Veterans benefits
  • Disability proceeds from a life insurance or disability policy
  • Cash surrender value of life insurance
  • Many others (click to see complete list)

As of May 1, 2011, anyone applying for Social Security Benefits were required to have their checks direct-deposited to their bank.

As of March 1, 2013, anyone who had been receiving their Social Security Benefit checks by mail had to switch to a Direct Deposit with their bank.

But, there was another very important law passed on May 1, 2011. 

If a bank receives a garnishment order (only after a judgment was awarded the creditor), the bank cannot freeze or release money that came from social security benefits if the government deposited the benefits directly into your account within two months prior to garnishment order.

After receiving the garnishment order, the bank must know perform a two month "look back" check to determine the source of funds in your account. 

The bank must report to you within a few days of their "investigation" and let you know what they plan to do.


  • Social Security (or other retirement benefits) are not protected from payment of:
  • Child support
  • Alimony
  • Federal and/or State Taxes
  • Federally insured Student Loans

One final warning about protecting your Social Security and/or other Retirement Income from garnishment..

  • 1.  Do not co-mingle your Social Security Benefits with other funds.  This could remove the exemption!
  • 2.  If you transfer money from the account that received the Social Security Benefit to another account (a savings account for example), that account will not be protected!

If you have questions or could use some advice, please let us know! We've been helping people with severe debt issues for a long time, and we can help you to. 

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Tags: wage garnishment, wage garnishment in oregon, can social security be garnished, exemption from garnishment, social security benefits

Advantages of Debt Settlement in Texas

advantages of debt settlement in texasIf you live in Texas, you have some unique laws that make debt settlement a great way to eliminate old credit card or other unsecured debts.

Due to various circumstances such as:

  • Loss of employment
  • Illness
  • Death of Spouse
  • Divorce
  • or many other of life's challenges

...you may find yourself with too much debt and without the ability to make regular payments. When that happens, it doesn't take long before the DEBT COLLECTORS begin to start calling!

If this has happened (or is happening) to your, click here to learn how to STOP THE CALLS.

The debt collector may try to get you into a HARDSHIP PROGRAM!  BUT BEWARE!

If it has been several months since you made your last payment, the debt collector may file a complaint and you would receive a summons.


If you owe the debt and cannot negotiate a settlement, the CREDITOR OR PLAINTIFF will be awarded a DEFAULT JUDGMENT.

In most states, the CREDIOR can get a WRIT OF GARNISHMENT that would result in an average of 25% of your net income being withheld from each paycheck until 100% of the debt is paid!


Texas does not allow garnishment of wages in order to repay unsecured debt! This gives Texas residents a tremendous advantage and leverage in negotiating a settlement of their debts!

After being awarded a judgment, many creditors place a LIEN ON YOUR HOME

This means that before you sell or transfer the property, the debt (PLUS INTEREST, FEES, ETC,) would have to be paid to release the title!


Texas has the best HOMESTEAD LAWS in the United States.

Basically, your principle residence cannot have a creditor place a lien after a judgment for unsecured debt! This protects Texas Residents great protection and comfort!

With these two laws protecting your wages and homestead, residents of Texas can and should be able to negotiate very favorable settlements!

We have been helping Texas Residents for over 10 years and we can help you too!

Experienced Debt Settlement companies understand the advantages of debt settlement in Texas. Therefore, debt collectors are more willing to settle debts for less!

Actual Debt Settlement Examples: (Click on Link below to view)


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Tags: debt collection, wage garnishment, credit card debt, summons, debt settlement in Texas, debt relief in Texas, judgment, texas homestead law, texas debt settlement, lien

Can a Debt Collector Garnish Your Wages or Other Income?

wage or other income garnishment

Can a Debt Collector Garnish Wages or Other Income?

It depends... Debt collectors may or may not be able to garnish your wages or other income.

It depends on several factors:

  • Type of income
  • What state you live in
  • What the debt is for

In most cases, debt collectors cannot garnish the following types of income:

  • social security
  • disability
  • retirement
  • child support, and
  • alimony.

There are exceptions to this rule, so you must check your state's particular laws.

But, exceptions are usually not granted for federal (or state) taxes or student loans in delinquent or past due status.

As of May 1, 2011 (the same day as the death of Osama Bin Ladin), banks are required to review accounts for automatically deposited federal benefits (Social Security and Supplement Security Income, veterans benefits, railroad retirement, civil service retirement, and federal employee retirement) before they honor or allow a debt collector to withdraw money for a garnishment order.

If your bank receives a garnishment order, it is required to review your account for the previous two months and must protect any federal benefit AUTOMATICALLY deposited during that time frame or the current balance of the account, whichever is less.

For example, if you receive $1500 each month from Social Security benefits and an additional $1,000 a month in federal disability benefits, the bank would protect $5,000 or your current balance if it is less from garnishment.

Any amount above $5,000 in the account would be subject to garnishment.

Again, we are talking ONLY ABOUT RETIREMENT INCOME THAT IS AUTOMATICALLY DEPOSITED for you!  If you receive a check and deposit it yourself, this law doesn't apply.

And remember, this law is not going to protect you from money owed to the Federal or State Government or for back child support, so be aware.

If you are retired and have debt that has gone to collections, I recommend that you go to your bank and sit down with the manager or someone who really knows, and make sure you account is flagged as RETIREMENT INCOME ONLY.

If they will not honor your request, I'd look around for a bank that does.

At this time, Pennsylvania and Texas are the only two states that I am aware of that restrict wage garnishment.

In TEXAS, your wages are exempt or protected from garnishment EXCEPT FOR:

  • Child Support
  • Alimony
  • Taxes
  • Federal Student Loans

In PENNSYLVANIA, wages are exempt or protected from garnishment EXCEPT FOR:

  • child or spousal support,
  • obligations relating to a final divorce distribution
  • back rent on a residential lease
  • certain types of taxes
  • student loans, and
  • court ordered restitution in criminal matters

In other states, your wages can be garnished.  Usually, the amount is 25% of your net income, (after tax deductions).

Also, most states, like OREGON, have an amount of earned income, not retirement income that will be exempt from garnishment.  In other words, if you have a small income, it may be exempt from garnishment.

Bottom line....

If you have unsecured credit:

  • Credit cards
  • Store cards
  • Personal loans
  • Medical bills
  • Non-Federal student loans

 OK, so some or all of your income may be exempt from wage garnishment, but you still need to deal with your debts!

What can you do about getting rid of that debt?

You have several options:

But which Debt Relief option is best?

That depends on several circumstances.  Click here for a FREE CONSULTAION.

Can creditors garnish wages or other income



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Tags: wage garnishment, debt settlement, debt management, debt relief in Texas

Stop a Wage Garnishment in Oregon

stop wage garnishmentIf you have received wage garnishment due to a judgment issued on your unpaid credit cards or other personal loans, it may be possible to stop it.

But, you need to know your rights.

Certain types of income are exempt from wage garnishment:

  • Social Securtiy
  • SSS or Supplemental Security Income
  • Veteran's benefits
  • Civil Service and Federal Retirment and Disability Benefits
  • Military Annuities and Survivor's benefits
  • Merchant Seamen Wages
  • Longshoremen's and Harbor Worker's Death and Disablity benefits
  • Compensation for Injury, Death, or Detention of Employees of U.S. Contactors outside the U.S.
  • FEMA (Federal Emergency Management Agency) benefits

Also exempt from wage garnishment:

  • Retirement income (pension and personal retirement plans)
  • Public Employee Retirement System (PERS) benefits
  • Income you may be receiving from a Reverse Mortgage
  • W-2 Income that is less than $936 net after tax per month( your state's exempt amount )

But, you also need to be aware that these incomes MAY NOT BE PROTECTED from:

  • Delinquent Federal and/or State taxes
  • Federal Student Loans
  • Child Support
  • Alimony

If you receive a notice of garnishment, you should immediately contact the attorney representing the plantiff (creditor).

Your employer cannot do anything for you.  In fact, your employer must fulfill the writ of garnishment or could be subject to a hefty fine!

In most cases, the attorney for the plaintiff will agree to a reasonable repayment plan instead of enforcing the garnishment.


If the garnisment is going to be 25% of your net income (most states), and that comes to $500 per month, they are not going to agree to a $100 a month!

But, they may be open to say, $250-$350 for a STIPULATED AGREEMENT (SA).

You may also be able to settle the amount you owe for less than the full balance.  If you have any funds available, make an offer of approximately 50% fo the balance.

Since the judgment has been entered, and the writ of garnishment has been presented to your employer, the creditor will not be as willing to discount the balance as in a normal DEBT SETTLEMENT AGREEMENT.

If this sounds like too much for you to deal with us, please contact us.

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Tags: wage garnishment, debt settlement, debt collectors, wage garnishment in oregon

Help, I Received a Summons!

help i received a summonsIf you answer the door and are handed a summons, there are some things you must do:


If you don't read the summons carefully, it seems like it says that you have 20-30 days before you have to go to court. But this is absolutely NOT TRUE!

The summons is stating that you have a brief time period to file an ANSWER.  This is a formal denial of that you owe the debt.  In most cases, the DEFENDANT (that's you) doesn't need to file an "answer" as you do owe the debt.  But if you feel that you have repaid the debt or that the debt does not belong to you, by all means file an "answer".

It may cost you a hundred bucks or so, but that is just the cost of the court.  You will want to contact your court to find out what you should do. In very rare cases, you may need to hire an attorney to help.

After the collectors called and called and called, (Click HERE to learn HOW TO STOP THE CALLS), they may decide to FILE A CLAIM against you...hence the summons. Which brings us to...


We had a client that received a summons several months ago and did not tell us about it.  She called the other day to say that her wages were going to be garnished and "what can you do about it?"

In most cases, there is not much that can be done once a Writ of Garnishment is issued.  A WRIT OF GARNISHMENT is issued after the creditor or PLAINTIFF, wins a DEFAULT JUDGMENT.

Since we had no idea about the summons and subsequent legal procedure that led to the award of the judgment, we were in a bind!

Once the Writ of Garnishment is issued in most states, 25% of your net (after tax) income will be withheld by your employer!  For most people, this would be FINANCIALLY DEVESTATING!

For Example:

Let's say you make $18 an hour.  That's about $3,000 a month gross earnings.  If your employer withholds normal income taxes, that would mean your take home would be about $2250. 

A garnishment of 25% would be about $562.50!  If it's hard to make ends meet now, how could you do it with $562 less?

If she had contacted us about the summons as soon as she received it, we most likely would have negotiated either a settlement (maybe 50% or so of the balance) or a Stipulated Agreement, whereby she would repay the debt (often at a slightly reduced balance) with a monthly payment her budget could handle.

In some case the creditor will accept a stipulated agreement AFTER a judgment is awarded, but not always.  Unfortunately, although her creditor was willing to take a little less that the $562.50, she could not afford it and she was forced to seek a bankruptcy attorney's services!



If you have receive a summons and are still not sure what to do, WE CAN HELP. Give us a call AT 1-877-492-4109 OR click the link below!

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Tags: wage garnishment, wage garnishment in oregon, receive a summons

Can Social Security checks be garnished?

can social security checks be garnishedWe get asked this question nearly every day.  So, it's time to answer the question:

Can Social Security Disability check be garnished?

The simple answer is SOMETIMES.  Social security disability benefits can be garnished. However, garnishment can only be carried out in a few specific instances. According to the social security administration, social security disability benefits may only be garnished to enforce child and alimony obligations, pay federal tax and debts owed to the IRS, and pay debts owed to federal agencies.

Your Social Security Disability checks CAN be garnished if:

  • You have alimony or child support obligations
  • You have a delinquent student loan
  • You owe taxes or IRS penalties

Creditors, however, are NOT entitled to garnishment provisions for social security disability benefits. 

Your Social Security Disability checks CAN'T be garnished if:

  • You are delinquent on a personal loan
  • You are delinquent on a car loan
  • You are delinquent on a credit card debt

However, if you are behind on a personal loan, car loan, credit card or other type of debt, you need to set up a plan to get the debt caught up and on a re-payment schedule.  There are programs, such as Debt Consolidation & Debt Settlement, that can help to reduce your monthly payment, lower or even eliminate the interest being charged, and get you out of debt FAST!

Our Solutions Specialist can help you decide what is the best option for you.  Give us a call for a Free Debt Elimination Consultation or click on the link below!


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Tags: wage garnishment, debt settlement, debt consolidation, can social security checks be garnished


The doorbell rings and you are handed a summons regarding one of your past due credit accounts.

Now what?I received a summons


  • You are not going to jail!
  • You most likely (about 99.9% of the time), will not go to court!
  • They are not going to come take all of your belongings!


For the sake of this article, we're talking about unsecured debts such as:

  • Credit cards
  • Personal loans
  • Medical bills
  • Personal line of credit
  • Store cards, etc.

When a creditor cannot get a consumer to pay as agreed they may choose to start legal action in order to collect the debt.

A CLAIM will be filed in the county court where you reside.

Then, you will receive a SUMMONS. This is usually hand delivered.

The summons will state something to the effect that you have 20 or 30 days after receipt of the summons to APPEAR IN COURT TO ANSWER THE CLAIM.

An ANSWER is your side of the story if you feel you do not owe the amount of the claim.

Now, just because you don't like the additional interest, late fees and now court costs that have been added to the claim doesn't matter!

So, if you owe the debt, there is no reason to spend the time or money for an answer and NO, YOU DO NOT NEED TO GO TO COURT.



If you are employed  and receive normal W-2 wages(not self-employed, we’ll  get to that later), then you should try to work out a repayment plan so that they don't proceed with legal action.

The Plaintiff is the Creditor and since the collection agency failed to get some kind of payment or repayment plan from you has decided to take the legal route in order to force your hand.

And, IT WORKS! You might have ignored the letters and calls up until now, but now they have your attention!

If a repayment plan cannot be agreed upon, then the creditor may decide to go ahead and apply for a court date.

They will win the judgment in favor of the plaintiff by default, as there is no need for you to show up as you have no defense…you owe the debt!

With a judgment entered in favor of the plaintiff, they can now seek to:

  • Garnish your wages or
  • Levy you bank account

But again, DON’T PANIC!

A wage garnishment is usually 25% of you net take-home pay, and your employer has no choice but to comply with the court order.

For most people, losing 25% more of your income would be devastating, and you would have to seek bankruptcy protection (Chapter 7 or 13).

But hold on… there is another option:

Most creditors will agree to a STIPULATED AGREEMENT.

It is an agreement (sometimes filed with the court) whereby you agree to pay $XXX.00 per  month until the entire balance (including court costs, attorney fees and back interest) is paid-in-full.

If you can and do get such an agreement, GET IN WRITING before sending any funds!

If you have a source of funds available (401(k), family, friends) so that you could get around 50% of the balance all at once, the creditor may accept that and close the claim.

Once again, GET IN WRITING before sending any funds!



Certain forms of income are exempt from wage garnishment:

  • Unemployment income
  • Social Security or Pension income
  • Disability income
  • Child support
  • And in most states, net income

For more information about wage garnishment, visit: US DEPARTMENT OF LABOR.

If all of this is a little intimidating, you may need our help. We have been helping our clients settle accounts and avoid wage or bank garnishment for over 8 years and have the experience that you may need.

For a FREE, NO OBLIGATION review of your situation, click here.

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Tags: wage garnishment, summons, stipulated agreements

What to Do to Stop a Wage Garnishment

stop a wage garnishmentIn most states, a wage garnishment for non-payment of debt is approximately 25% of your net, after-tax income.

For most people, this would be FINANCIALLY DEVESTATING!

First, you need to understand how wage garnishment works:

  • Your debts become delinquent because of non-payment.
  • The calls and letters start.
  • If repayment agreement cannot be arranged, the account is charged-off and placed with a collection agency and/or lawfirm/collection agency.
  • More calls and letters.
  • Again, if a repayment agreement cannot be arranged, the creditor may instruct the collector/law firm to FILE A COMPLAINT.
  • Once the file is processed, you will receive a SUMMONS.  It states that you have 20-30 days to ANSWER or give cause why you do not owe the debt.
  • Again, if a repayment agreement cannot be arranged, then a court date is set, the creditor or PLAINTIFF wins a DEFAULT JUDGMENT.
  • Once the JUDGEMENT has been awarded to the PLAINTIFF, they can apply for a WRIT OF GARNISHMENT to your employer.
  • Your employer has no choice but to comply with the WRIT OF GARNISHMENT or will face a fine from the court!
  • You get your paycheck with an additional 25% reduction!
stop a wage garnishment 

What can you do to stop a Wage Garnishment?

At this point, you need to contact the attorey for the plaintiff and try to negotiate a repayment agreement called a STIPULATED AGREEMENT.

A Stipulated Agreement is an agreement between you and the attorney/plaintiff/creditor that you will pay so much per month until the balance of the debt is repaid.

You may need to give the attorney financial proof that you are unable to pay, but most likely, they will agree to a plan whereby the monthly payment is something your budget can handle.

If you cannot come to an agreement, then you may be forced to contact a BANKRUPTCY ATTORNEY and seek BANKRUPTCY PROTECTION.

We have helped hundreds of clients, just like you, not only avoid wage garnishment, but also settle debts at a substantial reduction!


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Tags: debt collection, wage garnishment, dealing with debt collectors, how to stop a wage garnishment

I received a summons. What can I do?

credit card help

HELP! I received a summons for my credit card.

What can I do?

First, don't panic! 

  • You are not going to jail
  • You most likely will not have to go to court
  • If this was an unsecured debt, no one is going to come take your personal property
  • The creditor is not going to garnish your wages...unless you ignore the summons
  • For the time being, your bank account is OK

OK, so now what?

Somewhere on the first part of the summons it will tell you that you have 20 or 30 days from receipt of the summons to ANSWER the complaint.

To answer means that you file a reply with the court explaining why you don't owe the debt, THAT IS, IF YOU DISPUTE THE DEBT.

But in this case, you owe it, you just don't have enough money to make the payments.  To answer DOES NOT mean to explain why you are in a hardship position, financially.  So don't waste your time or money filing an answer.

Instead, contact the attorney who filed the claim for the creditor.  Ignoring the summons is not a good idea!

But before you do, take time to write down all of your net income and expenses so that you will be able to explain why you cannot keep up with the payments at this time.

It might be helpful to use a basic household budget. 

For a free copy, click here.

If you had about 50% of the balance somewhere, you could make a settlement offer and most likely they would accept it.

But, most people do not have that kind of money available or they wouldn't be in trouble in the first place!

So, let's say that your minimum payment was supposed to be $125, but you can only realistically afford $50.

Offer to pay $50/month if they will stop the interest and finance charges.

If the monthly interest and other charges (late fees, over-the-limit fees, etc.) are more than $50/month, it doesn't make sense to send them $50.  You wouldn't get anywhere!

If they accept the offer (most likely will come back at you with a counter offer), MAKE SURE TO GET IT IN WRITING.

This is critical to protect you in the future.  Many people agree with a service person, authorize a check-by-phone, make several payments, and when the check on the account, find out that nothing from the original account agreement was modified.


Once the agreement is set, do not miss a scheduled payment.  This is usually grounds for voiding the agreement and you are back to square-one!

If you can't afford anything, then you may want to consider bankruptcy protection.

Although bankruptcy should be your last option, it is not the end of the world.

Seek the advice of a bankruptcy attorney (one who specializes in bankruptcy) before proceeding.

You may also want to consider other options such as Debt Management or Debt Settlement.


Be proactive and most likely, you'll work something out.



Tags: wage garnishment, debt relief solutions, summons, alternatives to bankruptcy, stipulated agreements

Stop Wage Garnishment!

I need your helpHELP! They took money out of my paycheck and I can't pay my rent!

Debt collectors have the right to file a claim for an unpaid account or loan.

Once they have been awarded a judgment, they can apply for a writ of garnishment.

Although the amount of money they can take from your paycheck varies from state-to-state, it is usually about 25% of your net take-home per paycheck until the entire debt is repaid!

For most people, this would spell DISASTER

It is hard enough paying the bills without losing an additional 25% of your income.

What can you do if you have received a wage garnishment?

Take a few minutes to complete an accurate personal budget that lists your total net income and all of your bills.

Write a brief account of why you are in a financial hardship.  Don't be too long or brief and simply state the facts. 

Make sure to state that if an alternate agreement to the wage garnishment cannot be set up, then you will have to consult a bankruptcy attorney for protection.

Contact the attorney or collection agency that initiated the claim. They will probably ask for the budget and hardship statement before considering an agreement.

In most cases, they will be willing to work out a Stipulated Agreement, whereby you agree to repay the debt at a monthly amount your budget can reasonably handle.

GET IT IN WRITING!  Do not agree to a check-by-phone or any other method of payment without the agreement.

The agreement should specifically state the terms, interest rate (each state sets a maximum rate that can be charged) and the exact dates the payments is due in their office.

Once you have the agreement, make sure that you make your payments on time!  Failure to meet the due date will usually void the agreement!

Negotiating agreements and dealing with collectors/attorneys can be very difficult and time consuming.  You may find it is worthwhile to consult a qualified debt management company.


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Tags: wage garnishment, debt settlement, debt elimination without bankrupcy, stipulated agreements