Oregon debt statute of limitations

Oregon limitation periods by type of debt

Oregon applies a 6-year period to contracts and accounts, express or implied (§ 12.080(1)).

What the Oregon statute says

“(1) An action upon a contract or liability, express or implied, excepting those mentioned in ORS 12.070, 12.110 and 12.135 and except as otherwise provided in ORS 72.7250;”
Or. Rev. Stat. § 12.080(1)

“(1) An action upon a contract or liability, express or implied, excepting those mentioned in ORS 12.070, 12.110 and 12.135 and except as otherwise provided in ORS 72.7250;”
Or. Rev. Stat. § 12.080(1)

Does paying restart the clock in Oregon?

A payment on an existing debt after it becomes due starts the period again from the last payment; an acknowledgment or promise counts only in a signed writing (Or. Rev. Stat. § 12.240; § 12.230).

“Whenever any payment of principal or interest is made after it has become due, upon an existing contract, whether it is a bill of exchange, promissory note, bond, or other evidence of indebtedness, the limitation shall commence from the time the last payment was made.”
Or. Rev. Stat. § 12.240

In Oregon, an acknowledgment or new promise extends the period only if it is in a writing signed by the debtor; the section does not change the effect of a payment.

“No acknowledgment or promise shall be sufficient evidence of a new or continuing contract, whereby to take the case out of the operation of this chapter, unless the same is contained in some writing, signed by the party to be charged thereby; but this section shall not alter the effect of any payment of principal or interest.”
Or. Rev. Stat. § 12.230

Oregon’s own debt collection law

Oregon's unlawful collection practices law (ORS 646.639) lists conduct a debt collector may not engage in while collecting or trying to collect a consumer debt.

“(2) A debt collector engages in an unlawful collection practice if the debt collector, while collecting or attempting to collect a debt, does any of the following:”
Or. Rev. Stat. § 646.639(2)

If a creditor wins a judgment in Oregon

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Oregon rules take over.

How long a judgment lasts

In Oregon, judgment remedies for a civil judgment expire 10 years after entry unless extended; a creditor may extend them by filing a certificate of extension before they expire (ORS 18.182).

“Except as provided in ORS 18.180 to 18.190, judgment remedies for a judgment in a civil action expire 10 years after the entry of the judgment.”
Or. Rev. Stat. § 18.180(3); see § 18.182

Wage garnishment

Oregon exempts 75% of disposable earnings from execution, and also protects a minimum weekly amount of net disposable earnings that steps up over time ($338 per week for wages payable July 1, 2025 to June 30, 2026, and $400 per week from July 1, 2026 to June 30, 2027), with other figures for longer pay periods.

“Except as provided in this section, 75 percent of the disposable earnings of an individual are exempt from execution.”
Or. Rev. Stat. § 18.385(1)-(2)

Money in a bank account

In Oregon, a 'base protected account balance' (initially $2,500 across all of a debtor's accounts at the financial institution) is not subject to garnishment; the amount is indexed each July 1 and the current figure is published on the Oregon Judicial Department website.

“The initial base protected account balance is the combined total of $2,500 in all of a debtor’s accounts in the financial institution. The State Court Administrator shall index the base protected account balance amount each year on or before July 1”
Or. Rev. Stat. § 18.785(2)(j)

Small claims court

In Oregon, claims for money or property up to $10,000 may be brought in the circuit court's small claims department (claims of $750 or less must be brought there).

“an action for the recovery of money, damages, specific personal property, or any penalty or forfeiture may be commenced and prosecuted in the small claims department if the amount or value claimed in the action does not exceed $10,000.”
Or. Rev. Stat. § 46.405(3)

Time-barred debt in Oregon

In Oregon, a debt collector may not file a lawsuit to collect a debt if it knows, or with reasonable diligence would know, that the statute of limitations bars collection.

“(r) Files a legal action to collect or files a legal action to attempt to collect a debt if the debt collector knows, or after exercising reasonable diligence would know, that an applicable statute of limitations bars the collection or the collection attempt.”
Or. Rev. Stat. § 646.639(2)(r)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Oregon treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Oregon?

6 years for credit-card debt and 6 years on a written contract, under Or. Rev. Stat. § 12.080. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Oregon?

A payment on an existing debt after it becomes due starts the period again from the last payment; an acknowledgment or promise counts only in a signed writing (Or. Rev. Stat. § 12.240; § 12.230).

Does Oregon have its own debt collection law?

Oregon's unlawful collection practices law (ORS 646.639) lists conduct a debt collector may not engage in while collecting or trying to collect a consumer debt. (Or. Rev. Stat. § 646.639(2)).

How long does a court judgment last in Oregon?

In Oregon, judgment remedies for a civil judgment expire 10 years after entry unless extended; a creditor may extend them by filing a certificate of extension before they expire (ORS 18.182). (Or. Rev. Stat. § 18.180(3); see § 18.182).

How much of my pay can be garnished in Oregon?

Oregon exempts 75% of disposable earnings from execution, and also protects a minimum weekly amount of net disposable earnings that steps up over time ($338 per week for wages payable July 1, 2025 to June 30, 2026, and $400 per week from July 1, 2026 to June 30, 2027), with other figures for longer pay periods. (Or. Rev. Stat. § 18.385(1)-(2)).

What if I am sued on an old debt in Oregon?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.