Oregon Debt Collection Laws: Time Limits, Garnishment and Your Rights
Oregon debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Oregon
- Time limit to sue on a written contract
- 6 years for an action on a contract or liability, express or implied. Oregon uses the same period for written and oral contracts. ORS 12.080(1)
- Wage garnishment limit
- 75% of disposable earnings is exempt, and the debtor must be left with at least a minimum weekly amount: $400 per week (or $832 every two weeks, $912 semimonthly, $1,792 monthly) for wages payable from July 1, 2026 to before July 1, 2027. ORS 18.385(1)-(2)
- Money protected in a bank account
- When a bank account is garnished, the bank must leave the debtor a base protected balance of $2,600 across all accounts at that bank (July 1, 2026 to July 1, 2027), in addition to protected federal benefits. ORS 18.785(2)(j); 18.348; Oregon Judicial Department, Base Protected Account Balance Exemption table
- Answering a debt lawsuit
- You must appear and defend (usually by filing an answer or motion with the court clerk) within 30 days from the date you were served with the summons. ORCP 7 C(2); ORCP 15 A
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for an action on a contract or liability, express or implied. Oregon uses the same period for written and oral contracts. Source: ORS 12.080(1) |
|---|---|
| Time limit for credit cards and open accounts | 6 years, the same as written contracts, because ORS 12.080(1) covers contracts express or implied (including oral agreements and credit accounts). Source: ORS 12.080(1) |
| Can a payment restart the clock? | Yes for payments: when a payment of principal or interest is made after a debt is due, the limitations period starts again from the last payment. An acknowledgment or new promise extends the period only if it is in a writing signed by the debtor. Source: ORS 12.230, 12.240 |
| How long a judgment lasts | Judgment remedies for a civil judgment expire 10 years after entry. Before they expire, the creditor may file a certificate of extension once, which extends them for another 10 years from the filing. Source: ORS 18.180(3), 18.182(1), (5) |
If you are sued
| Answering a debt lawsuit | You must appear and defend (usually by filing an answer or motion with the court clerk) within 30 days from the date you were served with the summons. Source: ORCP 7 C(2); ORCP 15 A |
|---|
Garnishment and what creditors can't take
| Wage garnishment limit | 75% of disposable earnings is exempt, and the debtor must be left with at least a minimum weekly amount: $400 per week (or $832 every two weeks, $912 semimonthly, $1,792 monthly) for wages payable from July 1, 2026 to before July 1, 2027. From July 1, 2027 the floor becomes 30 times the Oregon minimum wage per week (60, 65 and 130 times for other pay periods). The protected floor was raised in steps starting January 1, 2025 (from $254 per week before 2025, to $305, $338, and now $400). Source: ORS 18.385(1)-(2) |
|---|---|
| Money protected in a bank account | When a bank account is garnished, the bank must leave the debtor a base protected balance of $2,600 across all accounts at that bank (July 1, 2026 to July 1, 2027), in addition to protected federal benefits. Exempt funds such as wages and retirement payments stay exempt when deposited if reasonably identifiable, up to an accumulation of $7,500. Statute: https://www.oregonlegislature.gov/bills_laws/ors/ors018.html. The base amount started at $2,500 on January 1, 2025 and is indexed each July 1 by the State Court Administrator; it does not apply to child support, spousal support or restitution debts. |
| Homestead exemption | $158,300 for one judgment debtor, or $316,700 combined for two or more debtors in the same household, for garnishments issued or in effect from July 1, 2026 to before July 1, 2027. The home must be the actual residence of the owner or the owner's spouse, parent or child. For child support, spousal support or restitution debts the exemption remains $40,000 ($50,000 combined). Statute: https://www.oregonlegislature.gov/bills_laws/ors/ors018.html. Raised from $40,000 to $150,000 on January 1, 2025; indexed every July 1 ($154,200 for 2025-26). |
| Vehicle exemption | One vehicle up to $10,000 in value ($3,000 if the debt is for child support, spousal support or restitution). Source: ORS 18.345(1)(d) |
| Claiming an exemption | Use the Challenge to Garnishment form (ORS 18.850): deliver the original to the court administrator named in the writ and a copy to the garnishor. Deadline: within 120 days after receiving the writ for an exemption on wages from the employer garnished, or within 30 days for any other challenge (for example, a bank account). Source: ORS 18.700 |
| Bankruptcy exemptions | Oregon is not an opt-out state: in bankruptcy, a resident may choose either the federal exemptions or the Oregon state exemptions, but not both. Source: ORS 18.300 |
Debt collectors and interest
| State debt collection law | Oregon's Unlawful Debt Collection Practices law applies to anyone who collects consumer debt owed to a creditor or debt buyer, which includes original creditors collecting their own debts, not just collection agencies. Debt buyers' lawsuits must meet additional pleading requirements. Source: ORS 646.639; 646A.670 |
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| Debt collector licensing | Yes. A collection agency must register with the Department of Consumer and Business Services (Division of Financial Regulation) and keep its registration current. Source: ORS 697.015, 697.031 |
| Medical debt protections | No one may report medical debt of an Oregon resident to a credit reporting agency, and credit bureaus may not include known medical debt in a credit report. Hospitals must screen patients for financial assistance before sending a bill to collections. Interest on medical debt is barred for patients who qualify for financial assistance and otherwise capped at the one-year Treasury yield, between 2% and 5% a year, until judgment. Collectors may not pursue family members who are not legally responsible. Last amended 2025 (c. 343), which added the credit-reporting ban. Source: ORS 646A.677 |
| Interest rate limits | Judgment interest is 9% per year, and 9% is also the default rate on debts when the parties have not agreed on a rate (open accounts accrue from the last item). Source: ORS 82.010(1)-(2) |
Where to get help in Oregon
- Oregon Department of Consumer and Business Services, Division of Financial Regulation (registers collection agencies)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Oregon?
6 years for an action on a contract or liability, express or implied. Oregon uses the same period for written and oral contracts.
How long can a creditor sue on a credit card debt in Oregon?
6 years, the same as written contracts, because ORS 12.080(1) covers contracts express or implied (including oral agreements and credit accounts).
Does making a payment restart the statute of limitations in Oregon?
Yes for payments: when a payment of principal or interest is made after a debt is due, the limitations period starts again from the last payment. An acknowledgment or new promise extends the period only if it is in a writing signed by the debtor.
How long does a court judgment last in Oregon?
Judgment remedies for a civil judgment expire 10 years after entry. Before they expire, the creditor may file a certificate of extension once, which extends them for another 10 years from the filing.
How much of my wages can be garnished in Oregon?
75% of disposable earnings is exempt, and the debtor must be left with at least a minimum weekly amount: $400 per week (or $832 every two weeks, $912 semimonthly, $1,792 monthly) for wages payable from July 1, 2026 to before July 1, 2027. From July 1, 2027 the floor becomes 30 times the Oregon minimum wage per week (60, 65 and 130 times for other pay periods).
How much money in a bank account is protected from creditors in Oregon?
When a bank account is garnished, the bank must leave the debtor a base protected balance of $2,600 across all accounts at that bank (July 1, 2026 to July 1, 2027), in addition to protected federal benefits. Exempt funds such as wages and retirement payments stay exempt when deposited if reasonably identifiable, up to an accumulation of $7,500.
What is the homestead exemption in Oregon?
$158,300 for one judgment debtor, or $316,700 combined for two or more debtors in the same household, for garnishments issued or in effect from July 1, 2026 to before July 1, 2027. The home must be the actual residence of the owner or the owner's spouse, parent or child. For child support, spousal support or restitution debts the exemption remains $40,000 ($50,000 combined).
Can a creditor take my car in Oregon?
One vehicle up to $10,000 in value ($3,000 if the debt is for child support, spousal support or restitution).
What debt collection practices are illegal in Oregon?
Oregon's Unlawful Debt Collection Practices law applies to anyone who collects consumer debt owed to a creditor or debt buyer, which includes original creditors collecting their own debts, not just collection agencies. Debt buyers' lawsuits must meet additional pleading requirements.
Do debt collectors need a license in Oregon?
Yes. A collection agency must register with the Department of Consumer and Business Services (Division of Financial Regulation) and keep its registration current.
What protections apply to medical debt in Oregon?
No one may report medical debt of an Oregon resident to a credit reporting agency, and credit bureaus may not include known medical debt in a credit report. Hospitals must screen patients for financial assistance before sending a bill to collections. Interest on medical debt is barred for patients who qualify for financial assistance and otherwise capped at the one-year Treasury yield, between 2% and 5% a year, until judgment. Collectors may not pursue family members who are not legally responsible.
What is the maximum legal interest rate in Oregon?
Judgment interest is 9% per year, and 9% is also the default rate on debts when the parties have not agreed on a rate (open accounts accrue from the last item).
How do I respond to a debt collection lawsuit in Oregon?
You must appear and defend (usually by filing an answer or motion with the court clerk) within 30 days from the date you were served with the summons.
How do I stop a garnishment or claim an exemption in Oregon?
Use the Challenge to Garnishment form (ORS 18.850): deliver the original to the court administrator named in the writ and a copy to the garnishor. Deadline: within 120 days after receiving the writ for an exemption on wages from the employer garnished, or within 30 days for any other challenge (for example, a bank account).
Which bankruptcy exemptions can I use in Oregon?
Oregon is not an opt-out state: in bankruptcy, a resident may choose either the federal exemptions or the Oregon state exemptions, but not both.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.