What is a charging order?

A charging order is a legal tool used by creditors to collect on debts in the state of Oregon. It is a court-issued order that places a lien on a debtor’s property or other assets. This lien gives the creditor the right to receive distributions from the debtor’s assets as payment for the debt owed. A charging order is often used as an alternative to other traditional collection methods such as wage garnishment or foreclosure. In Oregon, a creditor can petition the court for a charging order when a debtor fails to pay a debt. The court will then issue an order to the debtor’s bank, employer, or other sources of income or assets. As long as the debtor maintains ownership of the asset, the creditor has the right to any proceeds that come from it. The charging order is a protective measure for creditors and it is also important for the debtor. Creditors are able to receive payment for debt without incurring additional legal fees, while debtors are able to keep their assets and avoid bankruptcy. The charging order is an effective way to enforce the rights of creditors while giving debtors an opportunity to pay their debt without losing their property.

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What is a charging order?

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