Bill Text: OR SB43 | 2011 | Regular Session | Enrolled
Bill Title: Relating to limits on collection of support obligations.
Spectrum: Unknown
Status: (Passed) 2011-06-22 - Effective date, January 1, 2012. [SB43 Detail]
Download: Oregon-2011-SB43-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
Senate Bill 43
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Attorney General John
Kroger for Department of Justice)
CHAPTER ................
AN ACT
Relating to limits on collection of support obligations; creating
new provisions; and amending ORS 18.345, 18.358, 18.845,
18.896, 25.414, 238.445, 656.234 and 657.855.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 25.414 is amended to read:
25.414. (1) The withholder shall withhold from the obligor's
disposable monthly income, other than workers' compensation under
ORS chapter 656 or unemployment compensation under ORS chapter
657, the amount stated in the order to withhold. The entity
issuing the order to withhold shall compute this amount subject
to the following:
(a) If withholding is for current support only, the amount to
be withheld is the amount specified as current support in the
support order.
(b) If withholding is for current support and there is an
arrearage, the amount to be withheld is 120 percent of the amount
specified as current support in the support order.
(c) If withholding is only for arrearage, the amount to be
withheld is one of the following:
(A) The amount of the last ordered monthly support.
(B) If there is no last ordered monthly support amount, the
monthly support amount used to calculate the arrearage amount
specified in the order or judgment for arrearage.
(C) If there is no last ordered monthly support amount and if
there was no monthly support amount, an amount calculated under
the formula established under ORS 25.275. For purposes of this
subparagraph, this calculation shall be based on the obligor's
current monthly gross income or, if the obligor's current monthly
gross income is not known, the Oregon hourly minimum wage
converted to a monthly amount based upon a 40-hour workweek, zero
income for the obligee, and one joint child, regardless of how
many children the parties may actually have. No rebuttals to this
calculation may be allowed.
(d) Notwithstanding the amount determined to be withheld under
paragraph (c) of this subsection, the obligor must retain
disposable monthly income of at least 160 times the applicable
federal minimum hourly wage prescribed by section 6 (a)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206) or any future
Enrolled Senate Bill 43 (SB 43-A) Page 1
minimum hourly wages prescribed in that section { + , if the
order to withhold is issued for:
(A) Disability benefits payments from the United States Social
Security Administration;
(B) Black lung benefits payments from the United States
Department of Labor; or
(C) Disability benefits payments from the United States
Department of Veterans Affairs + }.
(2) The amount to be withheld from unemployment compensation
under ORS chapter 657 is calculated as follows:
(a) If withholding is for a current support order, regardless
of the existence of arrearage, the amount to be withheld is the
lesser of:
(A) Twenty-five percent of the benefits paid; or
(B) The current monthly support obligation. The entity issuing
the order to withhold may convert the monthly support obligation
amount to a percentage to be withheld from each benefits payment.
{ - However, the total amount withheld in one month may not
exceed 25 percent of the benefits paid in that month or the
current monthly support obligation, whichever is less. - }
(b) If withholding is for arrearage only, the amount to be
withheld is the lesser of:
(A) Fifteen percent of the benefits paid; or
(B) The amount of the last ordered monthly support obligation.
The entity issuing the order to withhold may convert the last
ordered monthly support obligation amount to a percentage to be
withheld from each benefits payment. { - However, the total
amount withheld in one month may not exceed 15 percent of the
benefits paid in that month or the amount of the last ordered
monthly support obligation, whichever is less. - }
(c) The withholder may not charge or collect a processing fee
when withholding from unemployment compensation.
(3) The amount to be withheld from workers' compensation under
ORS chapter 656 is set forth in ORS 656.234.
(4) Notwithstanding any other provision of this section, when
withholding is from a lump sum payment or benefit, including but
not limited to retroactive workers' compensation benefits, lump
sum retirement plan disbursements or withdrawals, insurance
payments or settlements, severance pay, bonus payments or any
other similar payments or benefits that are not periodic
recurring income, the amount subject to withholding for payment
of a support obligation may not exceed { - one-fourth - } { +
one-half + } of the amount of the lump sum payment or benefit.
(5) { + (a) + } Notwithstanding any other provision of this
section, { + when the withholding is only for arrearage, + }
the administrator
{ - may - } { + shall + } set a lesser amount to be withheld
if the obligor demonstrates the withholding is prejudicial to the
obligor's ability to provide for a child the obligor has a duty
to support { + or the obligor's ability to provide for the
obligor's basic needs + }. { + The factors to be considered by
the administrator in determining whether the obligor can provide
for the obligor's basic needs include but are not limited to:
(A) The health expenses of the obligor;
(B) A verified disability affecting the obligor's ability to
work;
(C) Whether the obligor's income remaining after withholding
would be less than the self-support reserve established by rule
of the Department of Justice under paragraph (c) of this
subsection;
Enrolled Senate Bill 43 (SB 43-A) Page 2
(D) The available resources of the obligor; and
(E) The number and basic needs of other persons in the
obligor's household.
(b) The administrator shall establish a procedure to give
advance and periodic notice to the obligor of the provisions of
paragraph (a) of this subsection and of the means to reduce the
amount stated in the order to withhold.
(c) The Department of Justice shall adopt rules to implement
this subsection. + } { - The Department of Justice shall adopt
rules consistent with federal regulations to implement this
subsection. - }
(6) Except as provided in subsection (2) of this section, the
withholder may deduct from the obligor's disposable income a
monthly processing fee not to exceed $5. The processing fee is in
addition to the amount calculated to be withheld for support,
unless the amount to be withheld for support is the maximum
allowed under subsection (8) of this section, in which case the
fee is deducted from the amount withheld as support.
(7) If there are multiple withholding orders against the same
obligor, the amount to be withheld is the sum of each support
order calculated independently.
(8) No withholding as calculated under this section, including
the processing fee permitted in subsection (6) of this section,
shall exceed 50 percent of the obligor's net disposable income.
The limit established in this subsection applies whenever
withholding is implemented under this section, whether by a
single order or by multiple orders against the same obligor.
(9) When the obligor's income is not sufficient for the
withholder to fully comply with each withholding order, the
withholder shall withhold the maximum amount allowed under this
section. If all withholding orders for a particular obligor are
payable to or through the department, the withholder shall pay to
the department the income withheld and the department shall
determine priorities for allocating income withheld to multiple
child support cases relative to that obligor. If one or more of
the withholding orders for a particular obligor require payment
other than to or through the department, the withholder shall use
the following to determine priorities for withholding and
allocating income withheld to multiple child support cases:
(a) If the amount withheld from the obligor's income is
sufficient to pay the current support due to each case but is not
enough to fully comply with the withholding order for each case
where past due support is owed, the withholder shall:
(A) Pay to each case the amount of support due for the current
month; and
(B) Pay the remainder of the amount withheld in equal amounts
to each case where past due support is owed. However, no case
shall receive more than the total amount of current support and
past due support owed to that case at the time the payment is
made.
(b) If the amount withheld is not sufficient to pay the current
support due to each case, each case shall be paid a proportionate
share of the amount withheld. The withholder shall determine this
for each case by dividing the monthly amount ordered as current
support for that case by the combined monthly amount ordered as
current support for all cases relative to the same obligor, and
multiplying this percentage by the total amount withheld.
(10) An order to withhold income is not subject to the
limitations of ORS 18.385.
Enrolled Senate Bill 43 (SB 43-A) Page 3
(11) A withholder shall withhold funds as directed in the order
to withhold, except that when a withholder receives an
income-withholding order issued by another state, the withholder
shall apply the income-withholding law of the state of the
obligor's principal place of employment in determining:
(a) The withholder's fee for processing an income-withholding
order;
(b) The maximum amount permitted to be withheld from the
obligor's income;
(c) The time periods within which the withholder must implement
the income-withholding order and forward the child support
payment;
(d) The priorities for withholding and allocating income
withheld for multiple child support obligees; and
(e) Any withholding terms or conditions not specified in the
order.
SECTION 2. ORS 656.234 is amended to read:
656.234. (1) No moneys payable under this chapter on account of
injuries or death are subject to assignment prior to their
receipt by the beneficiary entitled thereto, nor shall they pass
by operation of law. All such moneys and the right to receive
them are exempt from seizure on execution, attachment or
garnishment, or by the process of any court.
(2) Notwithstanding any other provision of this section:
(a) Moneys payable under ORS 656.210 and 656.212 are subject to
an order to enforce child support obligations, and spousal
support when there is a current support obligation for a joint
child of the obligated parent and the person to whom spousal
support is owed, under ORS 25.378; and
(b) Moneys payable under ORS 656.206, 656.214, 656.236 and
656.289 (4) are subject to an order to enforce child support
obligations under ORS 25.378.
(3) Notwithstanding the provisions of ORS 25.378 and 25.414,
the amount of child support obligation subject to enforcement may
not exceed:
(a) One-fourth of moneys paid under ORS 656.210 and 656.212 or
the amount of the current support to be paid as continuing
support, whichever is less, or, if there is no current support
obligation and the withholding is for arrearages only, 15 percent
of the moneys paid under ORS 656.210 and 656.212 or the amount
previously paid as current support, whichever is less;
(b) { - One-fourth - } { + One-half + } of moneys paid in a
lump sum award under ORS 656.210 and 656.212 when the award
becomes final by operation of law or waiver of the right to
appeal its adequacy;
(c) { - One-fourth - } { + One-half + } of moneys paid
under ORS 656.206, 656.214 and 656.236; or
(d) { - One-fourth - } { + One-half + } of the net proceeds
paid to the worker in a disputed claim settlement under ORS
656.289 (4).
(4) Notwithstanding any other provision of this section, when
withholding is only for arrearages assigned to this or another
state, the Department of Justice may set a lesser amount to be
withheld if the obligor demonstrates the withholding is
prejudicial to the obligor's ability to provide for a child the
obligor has a duty to support.
SECTION 3. ORS 657.855 is amended to read:
657.855. (1) Except as provided in this section, benefits due
under this chapter may not be assigned, pledged, encumbered,
released or commuted and shall, except as otherwise provided in
Enrolled Senate Bill 43 (SB 43-A) Page 4
this chapter, be exempt from all claims of creditors and from
levy, execution and attachment or remedy for recovery or
collection of a debt, which exemption may not be waived. No
agreement by an individual to waive the individual's rights under
this chapter is valid.
(2) The exemption from execution or other process granted under
this section applies to only { - 75 - } { + 50 + } percent of
benefits payable under this chapter if the execution or other
process is issued for a child support obligation or an order or
notice entered pursuant to ORS chapter 25, 107, 108, 109, 110,
416, 419B or 419C and the child support obligation or the order
or notice is being enforced pursuant to a plan approved under
Title IV-D of the Social Security Act.
SECTION 4. ORS 18.345 is amended to read:
18.345. (1) All property, including franchises, or rights or
interest therein, of the judgment debtor, shall be liable to an
execution, except as provided in this section and in other
statutes granting exemptions from execution. The following
property, or rights or interest therein of the judgment debtor,
except as provided in ORS 18.305, shall be exempt from execution:
(a) Books, pictures and musical instruments to the value of
$600.
(b) Wearing apparel, jewelry and other personal items to the
value of $1,800.
(c) The tools, implements, apparatus, team, harness or library,
necessary to enable the judgment debtor to carry on the trade,
occupation or profession by which the judgment debtor habitually
earns a living, to the value of $3,000.
(d) A vehicle to the value of $3,000. As used in this paragraph
'vehicle' includes an automobile, truck, trailer, truck and
trailer or other motor vehicle.
(e) Domestic animals and poultry kept for family use, to the
total value of $1,000 and food sufficient to support such animals
and poultry for 60 days.
(f) Household goods, furniture, radios, a television set and
utensils all to the total value of $3,000, if the judgment debtor
holds the property primarily for the personal, family or
household use of the judgment debtor; provisions actually
provided for family use and necessary for the support of a
householder and family for 60 days and also 60 days' supply of
fuel.
(g) All property of the state or any county or incorporated
city therein, or of any other public or municipal corporation of
like character.
(h) All professionally prescribed health aids for the debtor or
a dependent of the debtor.
(i) Spousal support, child support, or separate maintenance to
the extent reasonably necessary for the support of the debtor and
any dependent of the debtor.
(j) The debtor's right to receive, or property that is
traceable to, an award under any crime victim reparation law.
(k) The debtor's right to receive, or property that is
traceable to, a payment or payments, not to exceed a total of
$10,000, on account of personal bodily injury of the debtor or an
individual of whom the debtor is a dependent.
(L) The debtor's right to receive, or property that is
traceable to, a payment in compensation of loss of future
earnings of the debtor or an individual of whom the debtor is or
was a dependent, to the extent reasonably necessary for the
support of the debtor and any dependent of the debtor.
Enrolled Senate Bill 43 (SB 43-A) Page 5
(m) Veterans' benefits and loans.
(n) The debtor's right to receive an earned income tax credit
under the federal tax laws and any moneys that are traceable to a
payment of an earned income tax credit under the federal tax
laws.
(o) The debtor's interest, not to exceed $400 in value, in any
personal property. However, this exemption may not be used to
increase the amount of any other exemption.
(2) If the property claimed by the judgment debtor as exempt is
adjudicated by the court out of which the execution issued to be
of a value in excess of that allowed by the appropriate paragraph
of subsection (1) of this section, the officer seizing the
property shall proceed to sell such property. Out of the proceeds
of such sale, the officer shall deduct costs of sale and shall
pay to the judgment debtor an amount equivalent to the value
declared to be exempt by any of the paragraphs of subsection (1)
of this section and shall apply the balance of the proceeds of
sale on the execution. A sale may not be made under such
execution unless the highest bid made exceeds the appropriate
exemption claimed and allowed plus costs of sale. If no bid is
received in excess of the value allowed by the appropriate
paragraph of subsection (1) of this section, the costs of sale
shall be borne by the judgment creditor.
(3) If two or more members of a household are joint judgment
debtors, each judgment debtor shall be entitled to claim the
exemptions in subsection (1)(a), (b), (c), (d) and (o) of this
section in the same or different properties. The exemptions
provided by subsection (1)(a), (b), (c), (d), (j), (k) and (o) of
this section, when claimed for jointly owned property, may be
combined at the option of the debtors.
(4) Notwithstanding any other provision of law except ORS
657.855, if a writ of garnishment or other execution is issued to
collect past due support as defined in ORS 18.600, { - 75 - }
{ + 50 + } percent of unemployment compensation benefits,
workers' compensation benefits and other benefits paid to the
debtor by the United States, by the state or by a political
subdivision of the state are exempt. The exemption related to
unemployment compensation benefits provided by this subsection is
subject to ORS 657.855. The exemption provided by this
subsection applies without regard to whether the payment is made
on a periodic basis or in a lump sum, including any lump sum
payable pursuant to a settlement or judgment. Notwithstanding
subsection (1)(k) of this section, if a payment is made under a
settlement or judgment on account of personal bodily injury and
the garnishment or other execution is issued to collect past due
support as defined in ORS 18.600, the lesser of { - 75 - }
{ + 50 + } percent of the payment or $7,500 is exempt.
SECTION 5. ORS 18.358 is amended to read:
18.358. (1) As used in this section:
(a) 'Beneficiary' means a person for whom retirement plan
benefits are provided { - and - } { + or + } their spouse.
(b) 'Internal Revenue Code' means the federal Internal Revenue
Code as amended and in effect on December 31, 1998.
(c) 'Permitted contribution' means:
(A) A contribution that, at the time of the contribution, is
not taxable income to the beneficiary and, if the sponsor is a
taxable entity, is tax deductible to the sponsor;
(B) A nondeductible contribution by a beneficiary to a
retirement plan to the extent that the contribution is permitted
to be made under the Internal Revenue Code;
Enrolled Senate Bill 43 (SB 43-A) Page 6
(C) A deductible or nondeductible contribution to an individual
retirement account to the extent the contribution is not subject
to federal excise tax as an excess contribution;
(D) A contribution, pursuant to a rollover or transfer, from
one retirement plan to another, to the extent the federal tax
deferred status is preserved at such time;
(E) A rollover from an individual retirement account described
in section 408 of the Internal Revenue Code to an individual
retirement account described in section 408A of the Internal
Revenue Code; and
(F) Any earnings under a retirement plan which are attributable
to a contribution described in subparagraphs (A) to (E) of this
paragraph.
(d) 'Retirement plan' means:
(A) A pension plan and trust, including a profit sharing plan,
that is described in sections 401(a), 401(c), 401(k), 403 and 457
of the Internal Revenue Code, including that portion attributable
to contributions made by or attributable to a beneficiary;
(B) An individual retirement account or annuity, including one
that is pursuant to a simplified employee pension, as described
in section 408 or 408A of the Internal Revenue Code; and
(C) Any pension not described in subparagraphs (A) and (B) of
this paragraph granted to any person in recognition or by reason
of a period of employment by or service for the Government of the
United States or any state or political subdivision of any state,
or any municipality, person, partnership, association or
corporation.
(e) 'Sponsor' means an individual or entity which establishes a
retirement plan.
(2) Subject to the limitations set forth in subsection (3) of
this section, a retirement plan shall be conclusively presumed to
be a valid spendthrift trust under these statutes and the common
law of this state, whether or not the retirement plan is
self-settled, and a beneficiary's interest in a retirement plan
shall be exempt, effective without necessity of claim thereof,
from execution and all other process, mesne or final.
(3) Notwithstanding subsection (2) of this section:
(a) A contribution to a retirement plan, other than a permitted
contribution, shall be subject to ORS 95.200 to 95.310 concerning
fraudulent transfers; and
(b) Unless otherwise ordered by a court under ORS 25.387, 75
percent of a beneficiary's interest in a retirement plan { + , or
50 percent of a lump sum retirement plan disbursement or
withdrawal, + } shall be exempt from execution or other process
arising out of a support obligation or an order or notice entered
or issued under ORS chapter 25, 107, 108, 109, 110, 416, 419B or
419C.
SECTION 6. ORS 18.845 is amended to read:
18.845. A notice of exemptions form must be in substantially
the form set forth in this section. Nothing in the notice form
described in this section is intended to expand or restrict the
law relating to exempt property. A determination as to whether
property is exempt from execution, attachment and garnishment
must be made by reference to other law. The form provided in this
section may be modified to provide more information or to update
the notice based on subsequent changes in exemption laws.
_________________________________________________________________
NOTICE OF EXEMPT PROPERTY
AND INSTRUCTIONS FOR
Enrolled Senate Bill 43 (SB 43-A) Page 7
CHALLENGE TO GARNISHMENT
Property belonging to you may have been taken or held in order to
satisfy a debt. The debt may be reflected in a judgment or in a
warrant or order issued by a state agency. Important legal papers
are enclosed.
YOU MAY BE ABLE TO GET YOUR PROPERTY BACK, SO READ THIS NOTICE
CAREFULLY.
State and federal law specify that certain property may not be
taken. Some of the property that you may be able to get back is
listed below.
(1) Wages or a salary as described in ORS 18.375 and 18.385.
Whichever of the following amounts is greater:
(a) 75 percent of your take-home wages; or
(b) $196 per workweek.
(2) Social Security benefits.
(3) Supplemental Security Income (SSI).
(4) Public assistance (welfare).
(5) Unemployment benefits.
(6) Disability benefits (other than SSI benefits).
(7) Workers' compensation benefits.
(8) All Social Security benefits and Supplemental Security
Income benefits, and up to $7,500 in exempt wages, retirement
benefits, welfare, unemployment benefits and disability benefits,
that are held in a bank account. You may attach copies of bank
statements to the Challenge to Garnishment form if you claim this
exemption.
(9) Spousal support, child support or separate maintenance to
the extent reasonably necessary for your support or the support
of any of your dependents.
(10) A homestead (house, manufactured dwelling or floating
home) occupied by you, or occupied by your spouse, parent or
child. Up to $40,000 of the value of the homestead is exempt. If
you jointly own the homestead with another person who is also
liable on the debt, up to $50,000 of the value of the homestead
is exempt.
(11) Proceeds from the sale of a homestead described in item
10, up to the limits described in item 10, if you hold the
proceeds for less than one year and intend to use those proceeds
to procure another homestead.
(12) Household goods, furniture, radios, a television set and
utensils with a combined value not to exceed $3,000.
*(13) An automobile, truck, trailer or other vehicle with a
value not to exceed $3,000.
*(14) Tools, implements, apparatus, team, harness or library
that are necessary to carry on your occupation, with a combined
value not to exceed $3,000.
*(15) Books, pictures and musical instruments with a combined
value not to exceed $600.
*(16) Wearing apparel, jewelry and other personal items with a
combined value not to exceed $1,800.
(17) Domestic animals and poultry for family use with a
combined value not to exceed $1,000 and their food for 60 days.
(18) Provisions and fuel for your family for 60 days.
(19) One rifle or shotgun and one pistol. The combined value of
all firearms claimed as exempt may not exceed $1,000.
(20) Public or private pensions.
(21) Veterans' benefits and loans.
(22) Medical assistance benefits.
Enrolled Senate Bill 43 (SB 43-A) Page 8
(23) Health insurance proceeds and disability proceeds of life
insurance policies.
(24) Cash surrender value of life insurance policies not
payable to your estate.
(25) Federal annuities.
(26) Other annuities to $250 per month (excess over $250 per
month is subject to the same exemption as wages).
(27) Professionally prescribed health aids for you or any of
your dependents.
*(28) Elderly rental assistance allowed pursuant to ORS
310.635.
(29) Your right to receive, or property traceable to:
(a) An award under any crime victim reparation law.
(b) A payment or payments, not exceeding a total of $10,000, on
account of personal bodily injury suffered by you or an
individual of whom you are a dependent.
(c) A payment in compensation of loss of future earnings of you
or an individual of whom you are or were a dependent, to the
extent reasonably necessary for your support and the support of
any of your dependents.
(30) Amounts paid to you as an earned income tax credit under
federal tax law.
*(31) Interest in personal property to the value of $400, but
this cannot be used to increase the amount of any other
exemption.
(32) Equitable interests in property.
(33) Security deposits or prepaid rent held by a residential
landlord under ORS 90.300.
(34) If the amount shown as owing on the Debt Calculation form
exceeds the amount you actually owe to the creditor, the
difference between the amount owed and the amount shown on the
Debt Calculation form.
Note: If two or more people in your household owe the claim or
judgment, each of them may claim the exemptions marked by an
asterisk (*).
_________________________________________________________________
SPECIAL RULES APPLY FOR DEBTS THAT ARE OWED FOR CHILD SUPPORT
AND SPOUSAL SUPPORT. Some property that may not otherwise be
taken for payment against the debt may be taken to pay for
overdue support. For instance, Social Security benefits, workers'
compensation benefits, unemployment benefits, veterans' benefits
and pensions are normally exempt, but only { - 75 - } { +
50 + } percent of a lump sum payment of these benefits is exempt
if the debt is owed for a support obligation.
YOU MUST ACT PROMPTLY IF YOU WANT TO GET YOUR MONEY OR PROPERTY
BACK. You may seek to reclaim your exempt property by doing the
following:
(1) Fill out the Challenge to Garnishment form that you
received with this notice.
(2) Mail or deliver the Challenge to Garnishment form to the
court administrator at the address shown on the writ of
garnishment, and mail or deliver a copy of the form to the
Garnishor at the address shown on the writ of garnishment. If you
wish to claim wages or salary as exempt, you must mail or deliver
the form within 120 days after you receive this notice. If you
wish to claim that any other money or property is exempt, or
claim that the property is not subject to garnishment, you must
Enrolled Senate Bill 43 (SB 43-A) Page 9
mail or deliver the form within 30 days after you receive this
notice. You have the burden of showing that your challenge is
made on time, so you should keep records showing when the
challenge was mailed or delivered.
(3) The law only requires that the Garnishor hold the garnished
money or property for 10 days before applying it to the
Creditor's use. You may be able to keep the property from being
used by the Creditor by promptly following (1) and (2) above.
You should be prepared to explain your exemption in court. If
you have any questions about the garnishment or the debt, you
should see an attorney.
YOU MAY USE THE CHALLENGE TO GARNISHMENT FORM ONLY FOR THE
FOLLOWING PURPOSES:
(1) To claim such exemptions from garnishment as are permitted
by law.
(2) To assert that property is not garnishable property under
ORS 18.618.
(3) To assert that the amount specified in the writ of
garnishment as being subject to garnishment is greater than the
total amount owed.
YOU MAY NOT USE THE CHALLENGE TO GARNISHMENT FORM TO CHALLENGE
THE VALIDITY OF THE DEBT.
IF YOU FILE A CHALLENGE TO A GARNISHMENT IN BAD FAITH, YOU MAY
BE SUBJECT TO PENALTIES IMPOSED BY THE COURT THAT COULD INCLUDE A
FINE. Penalties that you could be subject to are listed in ORS
18.715.
When you file a Challenge to Garnishment form, the Garnishee
may be required to make all payments under the garnishment to the
court, and the Garnishor may be required to pay to the court all
amounts received by the Garnishor that are subject to the
challenge to the garnishment. The Garnishee and Garnishor are
subject to penalties if they do not. For a complete explanation
of their responsibilities, see ORS 18.705 and 18.708.
_________________________________________________________________
SECTION 7. ORS 18.896 is amended to read:
18.896. (1) The challenge to execution form described in this
section does not expand or restrict the law relating to exempt
property. A determination as to whether property is exempt from
attachment or execution must be made by reference to other law.
The form provided in this section may be modified to provide more
information or to update the notice based on subsequent changes
in exemption laws.
(2) A challenge to execution form must be in substantially the
following form:
_________________________________________________________________
_____
COURT
COUNTY OF _____
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Enrolled Senate Bill 43 (SB 43-A) Page 10
____
)CHALLENGE TO
Plaintiff, )EXECUTION
)
vs. )Case No. ___
)
____
)
Defendant. )
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
THIS FORM MAY BE USED BY THE DEBTOR ONLY FOR THE FOLLOWING
PURPOSES:
(1) To claim such exemptions from execution as are permitted by
law.
(2) To assert that the amount specified in the writ of
execution as being subject to execution is greater than the total
amount owed.
THIS FORM MAY BE USED BY PERSONS OTHER THAN THE DEBTOR ONLY TO
CLAIM AN INTEREST IN THE PROPERTY THAT IS TO BE SOLD ON
EXECUTION.
THIS FORM MAY NOT BE USED TO CHALLENGE THE VALIDITY OF THE
DEBT.
I/We claim that the following described property or money is
exempt from execution:
_________________________________________________________________
_________________________________________________________________
I/We believe this property is exempt from execution because
(the Notice of Exempt Property at the end of this form describes
most types of property that you can claim as exempt from
execution):
_________________________________________________________________
_________________________________________________________________
I am a person other than the Debtor and I have the following
interest in the property:
_________________________________________________________________
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Name _____
Name _____
Enrolled Senate Bill 43 (SB 43-A) Page 11
Signature ____
Signature ____
Address ____
Address ____
________
________
Telephone Telephone
Number ____
Number ____
(Required) (Required)
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
YOU MUST ACT PROMPTLY IF YOU WANT TO GET YOUR MONEY OR PROPERTY
BACK. You may seek to reclaim your exempt property by doing the
following:
(1) Fill out the Challenge to Execution form that you received
with this notice.
(2) Mail or deliver the Challenge to Execution form to the
court administrator at the address shown on the writ of
execution.
(3) Mail or deliver a copy of the Challenge to Execution form
to the judgment creditor at the address shown on the writ of
execution.
You should be prepared to explain your exemption in court. If
you have any questions about the execution or the debt, you
should see an attorney.
YOU MAY USE THE CHALLENGE TO EXECUTION FORM ONLY FOR THE
FOLLOWING PURPOSES:
(1) To claim such exemptions from execution as are permitted by
law.
(2) To assert that the amount specified in the writ of
execution as being subject to execution is greater than the total
amount owed.
YOU MAY NOT USE THE CHALLENGE TO EXECUTION FORM TO CHALLENGE
THE VALIDITY OF THE DEBT.
IF YOU CLAIM AN EXEMPTION IN BAD FAITH, YOU MAY BE SUBJECT TO
PENALTIES IMPOSED BY THE COURT THAT COULD INCLUDE A FINE.
Penalties that you could be subject to are listed in ORS 18.899.
NOTICE OF EXEMPT PROPERTY
Property belonging to you may have been taken or held in order
to satisfy a debt. The debt may be reflected in a judgment or in
a warrant or order issued by a state agency. Important legal
papers are enclosed.
YOU MAY BE ABLE TO GET YOUR PROPERTY BACK, SO READ THIS NOTICE
CAREFULLY.
State and federal law specify that certain property may not be
taken. Some of the property that you may be able to get back is
listed below.
(1) Wages or a salary as described in ORS 18.375 and 18.385.
Whichever of the following amounts is greater:
(a) 75 percent of your take-home wages; or
(b) $196 per workweek.
Enrolled Senate Bill 43 (SB 43-A) Page 12
(2) Social Security benefits.
(3) Supplemental Security Income (SSI).
(4) Public assistance (welfare).
(5) Unemployment benefits.
(6) Disability benefits (other than SSI benefits).
(7) Workers' compensation benefits.
(8) All Social Security benefits and Supplemental Security
Income benefits, and up to $7,500 in exempt wages, retirement
benefits, welfare, unemployment benefits and disability benefits,
that are held in a bank account.
(9) Spousal support, child support or separate maintenance to
the extent reasonably necessary for your support or the support
of any of your dependents.
(10) A homestead (house, manufactured dwelling or floating
home) occupied by you, or occupied by your spouse, parent or
child. Up to $40,000 of the value of the homestead is exempt. If
you jointly own the homestead with another person who is also
liable on the debt, up to $50,000 of the value of the homestead
is exempt.
(11) Proceeds from the sale of a homestead described in item
10, up to the limits described in item 10, if you hold the
proceeds for less than one year and intend to use those proceeds
to procure another homestead.
(12) Household goods, furniture, radios, a television set and
utensils with a combined value not to exceed $3,000.
*(13) An automobile, truck, trailer or other vehicle with a
value not to exceed $3,000.
*(14) Tools, implements, apparatus, team, harness or library
that are necessary to carry on your occupation, with a combined
value not to exceed $3,000.
*(15) Books, pictures and musical instruments with a combined
value not to exceed $600.
*(16) Wearing apparel, jewelry and other personal items with a
combined value not to exceed $1,800.
(17) Domestic animals and poultry for family use with a
combined value not to exceed $1,000 and their food for 60 days.
(18) Provisions and fuel for your family for 60 days.
(19) One rifle or shotgun and one pistol. The combined value of
all firearms claimed as exempt may not exceed $1,000.
(20) Public or private pensions.
(21) Veterans' benefits and loans.
(22) Medical assistance benefits.
(23) Health insurance proceeds and disability proceeds of life
insurance policies.
(24) Cash surrender value of life insurance policies not
payable to your estate.
(25) Federal annuities.
(26) Other annuities to $250 per month (excess over $250 per
month is subject to the same exemption as wages).
(27) Professionally prescribed health aids for you or any of
your dependents.
*(28) Elderly rental assistance allowed pursuant to ORS
310.635.
*(29) Your right to receive, or property traceable to:
*(a) An award under any crime victim reparation law.
*(b) A payment or payments, not exceeding a total of $10,000,
on account of personal bodily injury suffered by you or an
individual of whom you are a dependent.
*(c) A payment in compensation of loss of future earnings of
you or an individual of whom you are or were a dependent, to the
Enrolled Senate Bill 43 (SB 43-A) Page 13
extent reasonably necessary for your support and the support of
any of your dependents.
(30) Amounts paid to you as an earned income tax credit under
federal tax law.
(31) Interest in personal property to the value of $400, but
this cannot be used to increase the amount of any other
exemption.
(32) Equitable interests in property.
Note: If two or more people in your household owe the claim or
judgment, each of them may claim the exemptions marked by an
asterisk (*).
_________________________________________________________________
SPECIAL RULES APPLY FOR DEBTS THAT ARE OWED FOR CHILD SUPPORT
AND SPOUSAL SUPPORT. Some property that may not otherwise be
taken for payment against the debt may be taken to pay for
overdue support. For instance, Social Security benefits, workers'
compensation benefits, unemployment benefits, veterans' benefits
and pensions are normally exempt, but only { - 75 - } { +
50 + } percent of a lump sum payment of these benefits is exempt
if the debt is owed for a support obligation.
_________________________________________________________________
SECTION 8. ORS 238.445 is amended to read:
238.445. (1) Except as provided in this section, the right of a
person to a pension, an annuity or a retirement allowance, to the
return of contribution, the pension, annuity or retirement
allowance itself, any optional benefit or death benefit, or any
other right accrued or accruing to any person under the
provisions of this chapter or ORS chapter 238A, and the money in
the various funds created by ORS 238.660 and 238.670, shall be
exempt from garnishment and all state, county and municipal taxes
heretofore or hereafter imposed, except as provided under ORS
chapter 118, shall not be subject to execution, garnishment,
attachment or any other process or to the operation of any
bankruptcy or insolvency law heretofore or hereafter existing or
enacted, and shall be unassignable.
(2) Subsection (1) of this section does not apply to state
personal income taxation of amounts paid under this chapter and
ORS chapter 238A.
(3) Unless otherwise ordered by a court under ORS 25.387, the
exemption from execution or other process granted under this
section applies to { - 75 - } { + 50 + } percent of amounts
paid under this chapter and ORS chapter 238A if the execution or
other process is issued for a support obligation or an order or
notice entered or issued under ORS chapter 25, 107, 108, 109,
110, 416, 419B or 419C.
SECTION 9. { + The amendments to ORS 18.345, 18.358, 18.845,
18.896, 25.414, 238.445, 656.234 and 657.855 by sections 1 to 8
of this 2011 Act apply to actions taken to enforce support
obligations on or after the effective date of this 2011 Act. + }
----------
Enrolled Senate Bill 43 (SB 43-A) Page 14
Passed by Senate March 17, 2011
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House May 31, 2011
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Enrolled Senate Bill 43 (SB 43-A) Page 15
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 43 (SB 43-A) Page 16
