Chapter 538 Oregon Laws 2001

AN ACT

HB 2175

Relating to exemptions from execution; creating new provisions; and amending ORS 23.160 and 29.225 and section 64, chapter 249, Oregon Laws 2001 (Enrolled House Bill 2386).

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 23.160 is amended to read:

23.160. (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. If selected and reserved by the judgment debtor or the agent of the judgment debtor at the time of the levy, or as soon thereafter before sale thereof as the same shall be known to the judgment debtor, the following property, or rights or interest therein of the judgment debtor, except as provided in ORS 23.220, 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 $1,700. 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. If the execution arises 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, the amount exempt from execution is 75 percent of the payment or payments, not to exceed a total of $7,500.

(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. If the execution arises 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, the amount exempt from execution is 75 percent of the payment or payments.

(m) Veterans’ benefits and loans. If the execution arises 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, the amount of veterans’ benefits other than loans that are exempt from execution is 75 percent of the benefits.

(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.

[(n)] (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 selected or reserved 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 making the levy 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. No sale shall 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 judgment debtors, each judgment debtor shall be entitled to claim the exemptions in subsection (1)(a), (b), (c), (d), (j), (k) and (L) of this section in the same or different properties. The exemptions when claimed for the same property shall be combined at the option of the debtors.

SECTION 2. ORS 29.225 is amended to read:

29.225. (1) The notice of exemptions referred to in ORS 29.215 shall be in substantially the form set forth in this subsection. Nothing in the notice form described under this subsection is intended either to expand or restrict the law relating to exempt property. Whether property is exempt from execution, attachment and garnishment shall be determined by reference to other law. The form may be modified either to provide more complete information or to update the notice based on subsequent changes in exemption laws. However, any such modification shall not be required. The following form is for notice of exemption:

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NOTICE OF EXEMPT PROPERTY

Property belonging to you may have been taken or held in order to satisfy a claim or judgment which has been asserted or entered against you. Important legal papers are enclosed.

YOU MAY BE ABLE TO GET YOUR PROPERTY BACK, SO READ THIS NOTICE CAREFULLY.

State and federal law say certain property may not be taken. Some of the property which may not be taken is listed below.

(1) Wages or a salary as described in ORS 23.175 and 23.185 (whichever of the following amounts is more: (a) 75 percent of your take-home wages; (b) For wages payable before June 30, 1992, $150; (c) For wages payable before June 30, 1993, $160; or (d) For wages payable on or after July 1, 1993, $170).

(2) Social Security (including SSI).

(3) Public assistance (welfare).

(4) Unemployment benefits.

(5) Disability benefits (other than SSI), unless the benefits are lump sum payments on a settlement or judgment and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

(6) Workers’ compensation benefits, unless the benefits are lump sum payments on a settlement or judgment and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

(7) Exempt wages, Social Security (other than SSI), welfare, unemployment benefits and disability benefits when placed in a checking or savings account (up to $7,500), unless the benefits are disability benefits that are lump sum payments on a settlement or judgment and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

(8) Spousal support, child support, or separate maintenance to the extent reasonably necessary for your support or the support of any of your dependents.

(9) A homestead (home, farm, manufactured dwelling, houseboat) if you live in it, to the value of $20,000 ($23,000 for a manufactured dwelling with land included; $25,000 for any other homestead with land included) or proceeds from its sale for one (1) year.

(10) Household goods, furniture, radios, a television set and utensils to $3,000.

*(11) Automobile, truck, trailer or other vehicle to $1,700.

*(12) Tools, implements, apparatus, team, harness or library necessary to carry on your occupation to $3,000.

*(13) Books, pictures and musical instruments to $600.

*(14) Wearing apparel, jewelry and other personal items to $1,800.

(15) Domestic animals and poultry for family use to $1,000 and their food for 60 days.

(16) Provisions (food) and fuel for your family for 60 days.

(17) One rifle or shotgun and one pistol. The combined value of all firearms claimed as exempt may not exceed $1,000.

(18) Public or private pensions, unless the benefits are lump sum payments and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

(19) Veterans benefits and loans, unless the benefits are lump sum payments on a settlement or judgment and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

(20) Medical assistance benefits.

(21) Health insurance proceeds and disability proceeds of life insurance policies, unless the benefits are lump sum payments on a settlement or judgment and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

(22) Cash surrender value of life insurance policies not payable to your estate.

(23) Federal annuities.

(24) Other annuities to $250 per month, excess over $250 per month subject to same exemption as wage.

(25) Professionally prescribed health aids for you or any of your dependents.

*(26) Elderly rental assistance allowed pursuant to ORS 310.635.

*(27) 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, unless it is a lump sum payment on a settlement or judgment and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

*(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, unless it is a lump sum payment on a settlement or judgment and the debt owed is for past due support. When the debt is for past due support, 75 percent of the lump sum payment.

(28) Amounts paid to you as an earned income tax credit under federal tax law.

[(28)] (29) Interest in personal property to the value of $400, but this cannot be used to increase the amount of any other exemption.

[(29)] (30) The difference between what you actually owe the creditor and the total amount due listed in the writ of garnishment, if the amount listed in the writ is larger.

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Note: If two or more people in your household owe the claim or judgment, each of them may claim the exemptions marked by *.

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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 form for claim of exemption that you received with this notice.

(2) Mail or deliver the form for claim of exemption to the clerk of the court at the address shown on the writ of garnishment. If the writ of garnishment is a writ of continuing garnishment, you must mail or deliver the form within 120 days after you receive this notice. If the writ of garnishment is not a writ of continuing garnishment, you must mail or deliver the form within 30 days after you receive this notice.

(3) Although (2) above allows you to claim an exemption, the law only requires the creditor to hold the 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 before being allowed a hearing by promptly following (1) and (2) above.

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You should be prepared to explain your exemption in court. If you have any questions, you should see an attorney.

IF YOU CLAIM AN EXEMPTION IN BAD FAITH, YOU MAY BE SUBJECT TO PENALTIES IMPOSED BY THE COURT THAT COULD INCLUDE A FINE.

Penalties you could be subject to are listed in ORS 29.142.

When you file this claim of exemption, the garnishee and Creditor will be required to pay any debt or obligation they hold into court. They are subject to penalties if they do not. For a more complete explanation of their responsibilities, see ORS 29.142.

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(2) The claim of exemption form referred to in subsection (1) of this section, ORS 29.142 and 29.215 shall be in substantially the following form:

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____________ ) CLAIM OF EXEMPTION

Plaintiff ) Case No. _____

vs. )

____________ )

Defendant )

I/We claim the following described property or money as exempt from execution:

______________________________________________________________________________

I/We believe this property is exempt because:

______________________________________________________________________________

Name_________________ Name _________________

Signature_______________ Signature _______________

Address_________________ Address _________________

__________________________ __________________________

Telephone Telephone

Number________________ Number ________________

(Required) (Required)

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SECTION 2a. If House Bill 2386 becomes law, section 2 of this 2001 Act (amending ORS 29.225) is repealed and section 64, chapter 249, Oregon Laws 2001 (Enrolled House Bill 2386), is amended to read:

Sec. 64. 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.

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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 23.175 and section 69b, chapter 249, Oregon Laws 2001 (Enrolled House Bill 2386) [of this 2001 Act]. Whichever of the following amounts is greater:

(a) 75 percent of your take-home wages; or

(b) $170 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) Exempt wages, Social Security benefits (other than SSI), welfare, unemployment benefits and disability benefits when placed in a checking or savings account (up to $7,500).

(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 (home, farm, manufactured dwelling or houseboat) if you live in it, to the value of $20,000 ($23,000 for a manufactured dwelling with land included; $25,000 for any other homestead with land included) or proceeds from its sale for one year.

(11) Household goods, furniture, radios, a television set and utensils with a combined value not to exceed $3,000.

*(12) An automobile, truck, trailer or other vehicle with a value not to exceed $1,700.

*(13) Tools, implements, apparatus, team, harness or library that are necessary to carry on your occupation, with a combined value not to exceed $3,000.

*(14) Books, pictures and musical instruments with a combined value not to exceed $600.

*(15) Wearing apparel, jewelry and other personal items with a combined value not to exceed $1,800.

(16) Domestic animals and poultry for family use with a combined value not to exceed $1,000 and their food for 60 days.

(17) Provisions (food) and fuel for your family for 60 days.

(18) One rifle or shotgun and one pistol. The combined value of all firearms claimed as exempt may not exceed $1,000.

(19) Public or private pensions.

(20) Veterans’ benefits and loans.

(21) Medical assistance benefits.

(22) Health insurance proceeds and disability proceeds of life insurance policies.

(23) Cash surrender value of life insurance policies not payable to your estate.

(24) Federal annuities.

(25) Other annuities to $250 per month (excess over $250 per month is subject to the same exemption as wages).

(26) Professionally prescribed health aids for you or any of your dependents.

*(27) Elderly rental assistance allowed pursuant to ORS 310.635.

*(28) 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.

(29) Amounts paid to you as an earned income tax credit under federal tax law.

[(29)] (30) Interest in personal property to the value of $400, but this cannot be used to increase the amount of any other exemption.

[(30)] (31) Equitable interests in property.

[(31)] (32) 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 (*).

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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 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 clerk of the court 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 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.

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 section 36, chapter 249, Oregon Laws 2001 (Enrolled House Bill 2386) [of this 2001 Act].

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 sections 32 and 33, chapter 249, Oregon Laws 2001 (Enrolled House Bill 2386) [of this 2001 Act].

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SECTION 3. (1) Except as provided in subsection (2) of this section, the amendments to ORS 23.160 by section 1 of this 2001 Act apply to all debts, whether incurred before, on or after the effective date of this 2001 Act.

(2) The amendments to ORS 23.160 by section 1 of this 2001 Act do not apply to any garnishment or other execution issued before the effective date of this 2001 Act.

(3) The amendments to ORS 29.225 by section 2 of this 2001 Act apply only to notices of exempt property mailed or delivered on or after the effective date of this 2001 Act.

SECTION 3a. If House Bill 2386 becomes law, section 3 of this 2001 Act is amended to read:

Sec. 3. (1) Except as provided in subsection (2) of this section, the amendments to ORS 23.160 by section 1 of this 2001 Act apply to all debts, whether incurred before, on or after the effective date of this 2001 Act.

(2) The amendments to ORS 23.160 by section 1 of this 2001 Act do not apply to any garnishment or other execution issued before the effective date of this 2001 Act.

(3) The amendments to [ORS 29.225 by section 2] section 64, chapter 249, Oregon Laws 2001 (Enrolled House Bill 2386), by section 2a of this 2001 Act apply only to notices of exempt property mailed or delivered on or after the effective date of this 2001 Act.

Approved by the Governor June 22, 2001

Filed in the office of Secretary of State June 25, 2001

Effective date January 1, 2002

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