What Are Your Legal Options to Stop Wage Garnishment?
Wage garnishment can be stressful, overwhelming, and even humiliating. When you're already struggling to make ends meet, watching your paycheck shrink before it even hits your account can feel like you're losing control of your life.
At Lyndon Ruhnke, P.C., I work with clients throughout Portland, Gresham, Beaverton, and across Oregon to stop or reduce wage garnishment through legal strategies that match your specific situation.
Whether you're dealing with a judgment from a credit card company, medical debt, or back taxes, I help people find real solutions and start fresh. If you're ready to protect your paycheck and explore your legal options, reach out to me, Attorney Lyndon Ruhnke, today.
What Is Wage Garnishment?
Wage garnishment happens when a creditor gets a court order requiring your employer to withhold a portion of your paycheck and send it directly to the creditor. This usually follows a legal judgment against you for unpaid debt.
In Oregon, there are limits to how much can be taken, but for many people, even a small garnishment can create financial hardship.
Garnishment can come from several sources. While private creditors must usually sue you and win a judgment before garnishing your wages, government agencies often have more power and don’t need to go through the court first.
Types of debts that commonly lead to wage garnishment include:
Credit card debt
Medical bills
Personal loans
Back child support
Unpaid taxes
Defaulted student loans
The good news is, no matter what type of debt is causing the garnishment, you usually have legal options to stop it—or at least reduce its impact.
File for Bankruptcy
For many people dealing with wage garnishment, bankruptcy is the most direct and effective solution. While it may not be the right answer for everyone, it immediately puts a stop to wage garnishment through what's called the "automatic stay."
Benefits of filing for bankruptcy include:
Immediate stop to garnishment: Once your case is filed, creditors must stop collection efforts, including wage garnishment.
Relief from multiple debts: Bankruptcy can address more than just the debt causing garnishment—it may wipe out other unsecured debts as well.
Fresh start: You may be able to reset your finances and rebuild your credit over time.
There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13:
Chapter 7 bankruptcy: This is a liquidation bankruptcy that can discharge most unsecured debts. It’s usually quicker, but not everyone qualifies.
Chapter 13 bankruptcy: This creates a three to five-year repayment plan that can help you keep assets and repay debts more affordably over time.
Before filing, I’ll walk you through the pros and cons, look at your income, assets, and debts, and help you decide if bankruptcy is the best option for you.
Challenge the Garnishment in Court
If you think the garnishment is incorrect, unfair, or based on outdated information, you may be able to challenge it in court. This is especially important if you have never received notice of the lawsuit or judgment.
Common legal grounds to challenge a wage garnishment include:
You were never properly served with court papers
The debt isn’t yours
The amount is wrong
You already paid the debt
The garnishment would cause financial hardship
Oregon law allows you to file a Challenge to Garnishment with the court. Timing is critical—you usually only have a few days from the time you’re notified of the garnishment to file the challenge. If you miss the window, you may lose your opportunity.
I can help you prepare and file the correct paperwork, present evidence, and argue your case in front of the judge if needed. Even if you think you don’t have a strong case, it’s worth talking to me to see if there’s a way to fight back.
Negotiate With the Creditor
Sometimes, stopping garnishment doesn’t require going to court or filing for bankruptcy. Creditors are often willing to work with you—especially if you offer a lump-sum settlement or propose a payment plan.
A creditor might agree to stop garnishment if:
They’d rather get paid voluntarily
They want to avoid court fees or delay
You’re offering a reasonable solution
Some options you can offer creditors include:
A reduced lump-sum payment to settle the debt
A monthly payment plan you can afford
A hardship letter explaining your financial situation
Negotiation can be a powerful tool, but you need to be careful. Anything you say could potentially be used against you later, and not all creditors will deal fairly. I’ve helped many clients successfully negotiate with creditors, and I’ll make sure you don’t agree to terms that make things worse.
Claim an Exemption
Oregon law protects certain types of income and limits how much can be taken from your wages. You may be able to stop or reduce the garnishment by filing a claim of exemption.
Types of income that may be exempt include:
Social Security benefits
Disability income (SSI or SSDI)
Unemployment benefits
Public assistance (TANF, SNAP)
Retirement income (in most cases)
Even your wages may be partially protected. According to the Oregon Department of Revenue, Oregon law caps garnishments at the lesser of:
25% of your disposable earnings, or
The amount by which your earnings exceed 60 times the state minimum wage
If you're already living paycheck to paycheck, you might qualify for a hardship exemption. I’ll help you determine if you qualify and file the right paperwork with the court to protect as much of your income as possible.
Pay Off the Debt
In some cases, the quickest way to stop a garnishment is to pay the debt in full. While this isn’t an option for everyone, it may be worth considering if:
You’re close to paying it off
You can borrow from family or friends
You can use a tax refund or other windfall
Before doing this, though, I recommend reviewing the debt carefully. Sometimes, creditors tack on fees or interest you don’t actually owe. I’ll help you verify the balance and confirm that paying the debt will truly end the garnishment.
Consolidate Your Debt
Debt consolidation combines multiple debts into one loan or payment, potentially at a lower interest rate. While it won’t erase your debts, it might stop garnishments if the consolidation loan allows you to pay off the judgment.
Possible consolidation methods include:
Personal loan from a bank or credit union
Home equity loan (if you own your home)
Credit counseling programs
Keep in mind, not all debt consolidation options are created equal. Some are helpful, while others can lead to more debt or higher payments. I’ll review your financial situation and help you explore whether consolidation makes sense for you—or if there’s a better alternative.
Respond Quickly to Any Legal Notices
The earlier you take action, the more options you have. If you've been sued or received notice of a judgment, don't ignore it—even if you’re scared or unsure of what to do.
If you receive legal papers, make sure to:
Read everything carefully
Check the deadline to respond
Gather all relevant documents
Reach out to me right away
I can review your paperwork, explain what it means, and help you act before it’s too late. The worst thing you can do is nothing—because once a garnishment starts, it’s harder to stop.
Don’t Wait Until It’s Too Late
Every day that passes with a garnishment in place means less money for your needs—and more stress for you and your family. Whether you want to stop the garnishment, reduce it, or avoid one in the first place, I can help you figure out the right move.
Let’s talk about where you’re at now and what’s possible moving forward. I’ve helped hundreds of Oregonians in Portland, Gresham, Beaverton, and beyond take back control of their paychecks and their peace of mind.
Contact an Experienced Bankruptcy Lawyer
Wage garnishment doesn’t have to be the end of your financial story. There are legal tools available, and I’ll help you use them. From filing for bankruptcy to challenging a judgment or negotiating with creditors, I’m here to make the process easier and more effective.
At Lyndon Ruhnke, P.C., I work closely with clients across Oregon, including those in Portland, Gresham, and Beaverton, to stop wage garnishments and give people the breathing room they need to rebuild their lives. Reach out to me today to schedule a consultation and take the first step toward protecting your paycheck.