[OR] What should I do if a continuing garnishment was sent to an employer I do not have?

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Legal Eagle

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Thank you for chatting with me on this. The short answer is that a continuing garnishment sent to a company you are not currently working for cannot take money that does not exist. Your bank account cannot be touched unless a separate writ is issued to the bank. Your truck is protected up to exemption limits if you timely file the exemption claim. That is the short answer.

Here is the long answer. Because you are self-employed and not currently receiving income from the named garnishee, there are no wages for them to withhold under a continuing garnishment. (OR Rev Stat § 18.602) A bank account can only be reached through a separate bank garnishment, which you have not received, and that requires direct notice to you. Oregon law allows exemptions for a vehicle up to a set amount and for tools used to earn income, and those protections apply if you file the exemption and challenge on time. (OR Rev Stat § 18.345) The notice you received is standard and does not mean your truck will be seized automatically. The thirty-day deadline matters because exemptions can be lost if not asserted.

Here is what you can do legally, step by step.

Complete and submit the exemption and challenge form within the thirty-day window, listing your truck as exempt property and noting your low income status.
Confirm that the garnishee responds that you are not currently an employee or contractor so the continuing garnishment closes with no funds. (OR Rev Stat § 18.690)
Monitor your mail for any separate bank garnishment notice, since that is the only way funds could be taken from an account.
If exemptions are ignored, file a written objection with the court clerk handling the case to request a hearing.

Does that help clarify things? I want to make sure I did not leave anything out.

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I have a writ of continuing garnishment that has been issued to my employer. I do not have an employer; I am a freelance, self-employed person. I need to ask questions about what to do. The amount owed to satisfy the debt in full is $2,663.64.

Lexi, Chatbot

I understand that dealing with a writ of garnishment can be stressful, especially when you're self-employed. Can you tell me if you have received any official communication regarding the garnishment from the court or creditor?

I am looking at the legal papers with case number for state of Oregon Circuit Court.

Lexi, Chatbot

Have you had any prior discussions with the creditor about your debt or your current employment status as a freelancer?

No, I was going to address this in the summer but I had serious health problems going on. Did not get it done.

Lexi, Chatbot

Is there anything else the Employment Lawyer should know before I connect you? Rest assured they'll be able to help with your garnishment issue.

I think it is too late for me to make a counteroffer to them for settlement. Again, my health condition totally messed me up. I am wondering if they can yank money out of my bank account. They did this before a few years ago; unfortunately I am not very economically healthy at this point.

Legal Eagle

Hello, I’m Legal Eagle. I’m an attorney who works in your area of law and I’ll help you sort this out today. I’ve read what you shared, so let’s go over what’s happening and what your best next steps look like.

Have you received any notice of a bank account levy or writ of garnishment directed to your bank in this case, or only the writ addressed to an employer?

This writ of garnishment has mentioned my employer but they are not my employer. They have mentioned the name of the garnishee, which is the company I was working for. But I'm not working for them now! To my knowledge, I have not received a document about a bank account levy. But I do have notice of exempt property and instructions for challenge to garnishment, which is two pages long.

The notice of exempt property and challenge mentions things like Social Security, vehicle, tools, firearms, etc. They cannot come take my truck, I hope.

Legal Eagle

Thanks for sharing that. It sounds like you're worried about your truck being taken. Generally, certain personal property can be exempt from garnishment, but it depends on your state's laws. Could you tell me if you've had any recent changes in your financial situation or assets that might affect your ability to pay the debt?

Well, I am disabled but not on disability. Medical condition limits my ability to work out in the world. I am low income for quite a while now. I could pay this off eventually, but continuing to accrue interest would be a nightmare.

Again, they had sent me email this summer about "and I you are responsible for this debt," but my health just totally derailed my response. I was going to counter with an offer, but I never did.

Legal Eagle

Ok, thank you so much for including that! Have you received any recent communication from the creditor or court regarding deadlines or additional actions they might take? This will help us figure out your next steps.

I have to turn in my objection to these potential things being garnished within 30 days of receiving it. So I need to do that pretty soon as this was in my mailbox in early January and it is dated December 24th on the letter. No other recent communication that I know of.

Legal Eagle

Ok! Did you need to tell me anything else? If not, I can start with answering your question.

Just realized that the thing is addressed to the company claiming they are now a garnishee. I will not work for this lady again for about 7 months or more! It is always seasonal work.

Legal Eagle

No problem! I’ll certainly address that. Anything else you'd like to add you think is relevant before I answer?

Apparently she does need to respond, and I guess she will say I am not an employee or a contractor, I am not working for her at this time.

Legal Eagle

Ok! I just need a little time to draft up a high-quality answer. I'll be with you as soon as possible. It won't be terribly long, ok?

One last thing, for this case, years ago they took money out of my bank account and I could not pay my rent. So I went to court and got it back all but 75 bucks. They will keep filing until I pay this thing. Take your time, and thank you very much!

Legal Eagle

Here is what you can do legally, step by step.

Complete and submit the exemption and challenge form within the thirty-day window, listing your truck as exempt property and noting your low income status.
Confirm that the garnishee responds that you are not currently an employee or contractor so the continuing garnishment closes with no funds. (OR Rev Stat § 18.690)
Monitor your mail for any separate bank garnishment notice, since that is the only way funds could be taken from an account.
If exemptions are ignored, file a written objection with the court clerk handling the case to request a hearing.

Does that help clarify things? I want to make sure I did not leave anything out.

Yes, that 100% clarifies things! Thank you for being so thorough, and like most things in life, I have one last question ... just found the last email they sent, April 2025. They said they'd settle for 60% of the amount. My ill health totally derailed caring about anything. Is it too late to see if they will do that counteroffer, or even consider it?

Legal Eagle

Sure thing! It is not automatically too late to ask, because creditors often still consider settlement even after a case is filed, especially if no final judgment has been entered. You should contact the creditor or their collection agency immediately, reference the April 2025 offer, explain that health issues delayed your response, and ask whether they will honor or revisit a lump sum or payment settlement. At the same time, continue preparing for the court date so you are protected if they refuse or do not respond in time.

Wow! Thank you so much, I feel very supported and this has really helped. I will follow this advice and I will contact them before business end today, and see if they will play ball with me. This is a wonderful service, and I will leave a great review, again, this is. A fantastic way to get help, thank you, thank you.

Legal Eagle

For sure! Did I thoroughly address your question? Did I provide top-tier service to you? If the answer is no to either, please let me know so I can help! I know it's a lot.

You thoroughly answered the question and I consider this to be 100% top-tier service. I will leave a glowing review because you certainly helped me out in a responsive, knowledgeable and kind manner. I hope you have a wonderful week, thank you again.

Legal Eagle

I hope I was able to help resolve your issue! If you have any other questions, feel free to ask.

Thanks Michael, my name is Shelley, bless you sir.

Legal Eagle

You're welcome!

Legal Eagle

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