72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2061
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Joint Interim Committee on
Judiciary for Oregon State Bar Debtor/Creditor Section)
CHAPTER ................
AN ACT
Relating to exemptions from execution; amending ORS 18.845 and
23.160.
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.
Enrolled House Bill 2061 (HB 2061-A) Page 1
(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.
(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 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. - }
{ + (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, if a writ of
garnishment or other execution is issued to collect past due
support as defined in ORS 18.600, 75 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
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
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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 percent of the payment or $7,500 is exempt.
SECTION 2. 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
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 23.186.
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.
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(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.
{ - * - } (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.
(29) Amounts paid to you as an earned income tax credit under
federal tax law.
{ + * + }(30) Interest in personal property to the value of
$400, but this cannot be used to increase the amount of any other
exemption.
(31) Equitable interests in property.
(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 (*).
_________________________________________________________________
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.
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(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 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.
_________________________________________________________________
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Passed by House April 1, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate April 24, 2003
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President of Senate
Enrolled House Bill 2061 (HB 2061-A) Page 5
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
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Governor
Filed in Office of Secretary of State:
......M.,............., 2003
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Secretary of State
Enrolled House Bill 2061 (HB 2061-A) Page 6