Debt relief in Oregon: collection rules, time limits and your options
Updated November 9, 2026
Oregon at a glance (checked November 2026)
| Oregon | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years, usually from your last payment |
| Wage garnishment for consumer debt | Up to 25% of take-home pay; the first $400 a week is protected |
| State debt collection law | Unlawful Debt Collection Practices Act, which covers original creditors too |
| Who licenses debt collectors | Division of Financial Regulation (registration) |
| Where to complain | Oregon Department of Justice, and the CFPB |
Debt collection rules in Oregon
Collection agencies must register with the Oregon Division of Financial Regulation (ORS chapter 697). Creditors collecting their own debts don't need to register, but Oregon's Unlawful Debt Collection Practices Act (ORS 646.639) covers them as well as collection agencies. It bans threats, harassment and misleading statements about a debt, and the Oregon Department of Justice takes complaints about how collectors treat you.
The federal Fair Debt Collection Practices Act applies to third-party collectors too. They can't call before 8 a.m. or after 9 p.m., must send you a validation notice, and have to stop collecting if you dispute the debt in writing within 30 days, until they verify it.
How long creditors have to sue
Oregon gives creditors 6 years for most debts, including credit cards, personal loans and medical bills, usually counted from your last payment (ORS 12.080). Paying anything or admitting you owe the debt can reset the clock, so get advice before you do either on an old debt.
Once the 6 years are up, a collector can still contact you but can't sue you or threaten to. If you're sued, you have 30 days after you're served to respond, or the court may rule against you by default. A judgment lasts 10 years in Oregon and can be renewed for 10 more.
What can be garnished in Oregon
Oregon protects a set amount of your take-home pay, $400 a week for pay from July 2026 through June 2027 (ORS 18.385). A creditor with a judgment can take the lesser of the amount above that or 25% of your take-home pay. From July 2027, the protected amount will be tied to Oregon's minimum wage.
Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Oregon
- Nonprofit credit counseling can combine your card payments into one debt management plan with lower rates. Oregon requires debt management and debt settlement companies to register with the Division of Financial Regulation, so check before you sign up.
- Smallest balance or highest rate first? Our snowball vs. avalanche calculator shows which order clears your debt sooner and which costs less.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Oregon lets you choose between its own exemption list and the federal one, but you can't mix them. A bankruptcy attorney can tell you which keeps more of what you own.
Where to get help or complain
- Oregon Department of Justice, debt collection explains your rights and takes complaints about collectors.
- Oregon Division of Financial Regulation, collection agencies registers collection agencies; its consumer help line is 888-877-4894.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Oregon Law Help has free guides on debt collection, lawsuits and garnishment.
General information about Oregon law, not legal advice. Checked November 2026.