The legislation increases the amount of income exempt from wage garnishment and revises statutes related to debt collection practices.
04/12/2024 11:50 A.M.
2 minute read
Oregon has finalized a law on wage garnishment after Gov. Tina Kotek signed SB 1595 on April 4.
Under the new law, taking effect Jan. 1, 2025, and of note for members who work in legal collections in Oregon, the value of some properties that are exempt from execution will increase, and garnishment levels for earnings and funds in a financial institution will also change.
According to a summary from ACA International member company Troutman Pepper:
- “The bill increases the value of certain properties that are exempt from execution.
- The value of books, pictures, and musical instruments exempt from execution has been increased to $600.
- The value of wearing apparel, jewelry, and other personal items exempt from execution has been raised to $1,800.
- The tools, implements, apparatus, team, harness, or library necessary for the debtor to carry on their trade, occupation, or profession are exempt up to a value of $5,000.
- The value of a vehicle exempt from execution has been increased to $10,000, or $3,000 if the debtor owes a debt that arises out of a child support or spousal support obligation or a money award judgment that includes restitution.”
The law also includes changes to unfair debt collection practices, such as a stipulation that 75% of a consumer’s disposable earnings are exempt from execution.
It also increases the “minimum net disposable earnings that an individual can retain after a garnishment and provides that funds exempt from execution under certain Oregon Revised Statutes remain exempt when deposited in a financial institution, as long as the exempt funds are reasonably identifiable,” according to Troutman Pepper.
ACA’s Take
A version of this bill was previously considered by the Oregon legislature in last year’s legislative session before it stalled. The Oregon Collectors Association worked with a broad coalition of business community and accounts receivable management industry representatives to secure significant amendments throughout the legislative process, ACA previously reported.
ACA will continue to provide updates on SB 1595 in ACA Daily as well as on the weekly ACA Huddle at 11 a.m. CST Wednesdays.
Members can also get valuable updates on changes to state laws and compliance requirements by subscribing to ACA’s State Guide Cohort and joining the monthly webinar series.
Already a State Guide subscriber? View your online State Guide and find registration information for the monthly webinars here. This is also where you can access past webinar recordings and session slides.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA profile when logged in to acainternational.org to receive updates on the ACA Huddle.