Legal Question in Credit and Debt Law in Oregon

You should check the judgment, and see what the interest rate and attorneys fees awarded by the Court were. If the loan agreement was at a high interest rate (I have seen some as high as 27%), the debt could increase by 1/3 every year.

A judgment is valid in Oregon for ten years, and there is no obligation to execute on it immediately. You may be able to claim certain exemptions to the garnishment, but it is likely that over time, the judgment creditor will be able to recover the full amount of the judgment, unless you reach an agreement with the lender.

If you are being contacted by a collection agency, its conduct is regulated by the federal Fair Debt Collection Practices Act. The original creditor is regulated by a similar law in Oregon called the Unlawful Debt Collection Practices Act. If your total debt picture, including the judgment, medical bills and other debts, is such that you cannot reasonably expect to pay your debts, bankruptcy may be a good option to consider.

Justin M. Baxter

Baxter & Baxter, LLP

8835 SW Canyon Lane, Suite 130

Portland, Oregon 97225

(503) 297-9031 (Telephone)

(503) 291-9172 (Facsimile)

Baxter & Baxter, LLP

5635 NE Elam Young Parkway, Suite 300

Hillsboro, Oregon 97124, USA

(503) 681-9752 (Telephone)

(503) 291-9172 (Facsimile)

Baxter & Baxter, LLP

1101 Broadway Street, Suite 213

Vancouver, Washington 98660

(360) 574-5239 (Telephone)

(360) 326-1613 (Facsimile)

http://www.baxterlaw.com