Debt Collection Laws in Oregon
If you're dealing with debt collection in Oregon, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
Oregon's 2026 debt outlook
Bankruptcy filings in Oregon ran 8,291 in the 12 months ending March 2026, versus 6,940 the year before (+19.5%), per official U.S. Courts data. See the full 51-state filing ranking.
Serious mortgage delinquency (90+ days late) in Oregon sits at 0.5%, trending toward roughly 0.6% by the end of 2026 (elevated and rising). See the full 51-state outlook and methodology.
Debt collection complaints to the CFPB from Oregon residents ran 787 so far in 2026, versus 529 over the same window in 2025 (+49%). See the full state-by-state surge ranking.
How much of my paycheck can be garnished in Oregon?
Oregon protects 75% of your disposable earnings from an ordinary judgment creditor — but if 75% still leaves you with less than $400 a week, the law guarantees you that $400 floor instead. For 2026-2027, that floor is $400/week ($832 biweekly, $912 semi-monthly, $1,792 monthly), whichever pay period applies to you.
That dollar floor has been rising on a set schedule under a 2024 law (SB 1595) — $305/week in January 2025, $338/week that July, and $400/week as of July 2026 — after which it switches to automatic annual inflation adjustments instead of fixed step-ups.
Child support garnishment isn't covered by this 75% rule at all — it runs on the separate federal formula, which can reach 50-65% of disposable earnings depending on arrears and whether you support another spouse or child.
Can a creditor take money from my bank account in Oregon?
Oregon's protected bank balance is $2,600 as of July 1, 2026. ORS 18.785 governs the automatic protected balance and its adjustments.
The amount adjusts annually, so confirm the applicable period when a levy occurs.
Is my home protected from creditors in Oregon?
Oregon protects $158,300 of home equity for one owner, or $316,700 for qualifying co-owners, for the period beginning July 1, 2026.
There's an important carve-out: for debts specifically arising from child support, spousal support, or a restitution judgment, the older $40,000/$50,000 figures still apply instead of the higher, inflation-adjusted numbers — the bigger exemption only helps against ordinary consumer and commercial judgment creditors.
How long can a debt collector sue me in Oregon?
A collector has 6 years to sue you in Oregon over credit card debt or any other written contract, and the same 6 years applies to a debt that was never written down — an open account or a verbal agreement.
| Debt type | Statute of limitations |
|---|---|
| Written contract | 6 years |
| Oral or open-account debt | 6 years |
The clock generally starts at your last payment or a written acknowledgment of the debt, and a partial payment can restart it — a common trap for anyone making a small goodwill payment on debt they assume has already expired.
Does Oregon have its own debt collection law beyond the federal FDCPA?
ORS 646.639 prohibits specified unlawful collection practices and provides remedies within its scope. Collection agencies and debt buyers separately register with Oregon rather than receiving a collection-agency 'license.'
Do not treat federal compliance as eliminating ORS 646.639's independent requirements, and do not rely on unsupported resident/nonresident bond amounts; registration details should be checked with Oregon DFR.
Where can I find free or low-cost legal help in Oregon?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Oregon, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.