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Oklahoma Collection Laws

Oklahoma Collection Laws

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Mark Cappel
UpdatedApr 29, 2024
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    9 min read
Key Takeaways:
  • The statute of limitations for credit card debt is either 3 or 5 years, depending on the facts.
  • Facing garnishment? You can file a hardship claim to stop it.
  • Judgments have a short lifetime in Oklahoma: 3 or 5 years.

Learn Oklahoma's Rules For Garnishment, Liens, and Foreclosure

A lender, collection agent or law firm that owns a collection account is a creditor. The law gives creditors several means of collecting delinquent debt. But before a creditor can start, the creditor must go to court to receive a judgment. See the article Served Summons and Complaint to learn more about this process.

The court may grant a judgment to the creditor. A judgment is a declaration by a court the creditor has the legal right to demand a wage garnishment, a levy on the debtor’s bank accounts, a lien on the debtor’s property, and in some states, ask a sheriff to seize the debtor’s personal property. The laws calls these remedies. A creditor granted a judgment is called a judgment-creditor. Which of these tools a judgment-creditor will use depends on the circumstances. We discuss each of these remedies below.

Quick Tip

The Webmaster for the Oklahoma state Web server chooses, as of this writing, to publish Oklahoma's statutes in RTF format. You will need a tool such as Microsoft Word, Microsoft Word Viewer, or LibreOffice to read the statutes.

Oklahoma Wage Garnishment

The most common method used by judgment-creditors to enforce judgments is wage garnishment. A judgment-creditor contacts your employer and requires the employer to deduct a certain portion of your wages each pay period and send the money to the creditor.

In most states, creditors may garnish between 10% and 25% of your wages, with the percentage allowed determined by state law. Garnishment of Social Security benefits or pensions for consumer debt is not allowed under federal law, but may be allowed for child support. See the Wage Garnishment article to learn more.

Oklahoma allows two types of garnishment: continuing or wage garnishment, and non-continuing, which is bank account levy. For wage garnishment, Oklahoma follows federal rules, and exempts 75% of the judgment-debtor’s disposable earnings (OK Stat. Title 12-1173.4(I)(1)). Consumers can claim an exemption from a wage garnishment. One exemption may be undue hardship to the consumer’s family and/or dependents if the garnishment takes place (15 U.S.C. sect; 1673; OK Stat. Title 31-1.1. Oklahoma courts consider the following factors in determining an undue hardship:

  • The income and expenses of the consumer’s family and dependents
  • The consumer’s standard of living
  • The consumer’s standard of living in comparison to the minimal subsistence needs of his or her family and dependents
  • The consumer’s standard of living in comparison to the minimal subsistence standards in the community in regard to basic shelter, food, clothing, personal necessities, and transportation

The court is then required to determine whether the consumer and his or her dependents would suffer undue hardship if the garnishment were to remain in place (OK Stat. Title 31-1.1). The court may then either:

  • Order all or a portion of the earnings exempt, or
  • In the case of a continuing wage garnishment, exempt all or a portion of the earnings withheld within the 30 days preceding the filing of the claim for exemption, or modify or stay the garnishment for a period of time not to exceed the 180-day period in which the continuing garnishment shall be in effect (OK Stat. Title 31-1.1 (RTF)).

Wage garnishments remain in effect until either the amount is satisfied or 180 days passes, whichever occurs first (OK Stat. Title 12-1171 and 1173.4).

Garnishment of Social Security benefits or pensions for consumer debt is not allowed under federal law. If you reside in another state, see the Wage Garnishment article to learn more.

Levy Bank Accounts

A levy means the creditor has the right to take non-exempt money in a debtor’s account and apply the funds to the balance of the judgment. The procedure for levying bank accounts, as well as what amount, if any, a debtor can claim as exempt from the levy, is governed by state law. Many states exempt certain amounts and certain types of funds from bank levies, so a debtor should review his or her state’s laws to find if a bank account can be levied.

Oklahoma allows bank account levy, which state law refers to as non-continuing garnishments. The undue hardship exemption for non-continuing garnishment is the same as continuing garnishment, with additional exemptions an Oklahoma court must consider. Additional non-continuing garnishment exemptions include

  • Social Security benefits
  • Supplemental security income
  • Unemployment benefits
  • Workmen’s compensation benefits
  • Welfare benefits
  • Veteran’s benefits
  • Certain classes of pension
  • Retirement fund
  • Disability benefits
  • Civil Service Survivor annuities
  • Prepaid burial benefits
  • Proceeds of group-life insurance policies
  • Alimony, support, separate maintenance, or child support payments necessary for the support of the judgment-debtor’s dependent(s)

See 38 U.S.C. § 5301(a); 42 U.S.C. § 407(a); 42 U.S.C. § 1383(d)(1); 45 U.S.C. § 231m(a); 45 U.S.C. § 352 (e) to learn more.


A lien is an encumbrance — a claim — on a property. For example, if the debtor owns a home, a creditor with a judgment has the right to place a lien on the home, meaning that if the debtor sells or refinances the home, the debtor will be required to pay the judgment out of the proceeds of the sale or refinance. If the amount of the judgment is more than the amount of equity in your home, then the lien may prevent the debtor from selling or refinancing until the debtor can pay off the judgment.

In Oklahoma, a judgment lien can be attached to real estate only, and not personal property (OK Stat. Title 12-706 and 735). A judgment lien has a lifetime of 5 years in Oklahoma, and is subject to the consumer's homestead exemption.

If you reside in another state, see the Liens & How to Resolve Them article to learn more.

Oklahoma Statutes of Limitation

Each state or commonwealth has its own statute of limitations on civil matters. Here are some of Oklahoma’s statute of limitations for consumer-related issues:

Account/TypeYearsStatute and Case Law
Credit card3 or 5*OK Stat. Title 15-140(C)(2) (RTF) and OK Stat. Title 12-95 A(2) and Citibank South Dakota N.A. v. Santoro, 150 P.3d 429, 432 (Ore. 2006) and Discover Bank v. Worsham, 176 P.3d 366, 368-69 (Okla. Civ. App. 2007)
Spoken contract3OK Stat. Title 12-95 A(2) (RTF)
Written contract6OK Stat. Title 12-95 A(2)
Mortgage contract5OK Stat. Title 12-95
Promissory note5OK Stat. Title 12-95
Judgment3 or 5**OK Title 12-95 A(2) and OK Title 12-735
* Where a credit issuer or debt buyer can demonstrate that a consumer was provided clear terms in writing before account use, the creditor can argue the longer, 5-year statute applies. ** OK judgment is 5 years and can be renewed, and a non-OK judgment is 3 years.

Oklahoma statutes of limitations. Source:

When the statute of limitations clock starts depends on the circumstances and the particular statute. In most states, the clock starts after the cause of action accrues. The clock may be paused (called "tolled") under some circumstances, or renewed.

There is uncertainty about the Oklahoma statute of limitations for credit card debt. Some Oklahoma courts apply the 5-year statute of limitations for written contracts to credit card agreements. However, others apply the 3-year statute of limitations for open and unwritten contracts. Some Oklahoma commentators say when Oklahoma statute of limitations law conflicts with another state’s statute of limitations law, Oklahoma courts will use the longer statute of limitations. Others say Oklahoma courts default to 3 years, unless the creditor can prove it gave the consumer notice of the 5-year statute of limitations. To determine which statute of limitations will likely apply in your credit-card case, consult with an Oklahoma attorney to whom you can explain the details of your case. He or she will make an informed guess about your situation.

Collection agents violate the FDCPA if they file a debt collection lawsuit against a consumer after the statute of limitation expired (Kimber v. Federal Financial Corp. 668 F.Supp. 1480 (1987) and Basile v. Blatt, Hasenmiller, Liebsker & Moore LLC, 632 F. Supp. 2d 842, 845 (2009)). Unscrupulous collection agents sue in hopes the consumer will not know this rule.

Oklahoma Collections Laws

Oklahoma has not written a state law that subjects original creditors to the rules collection agents must follow under the FDCPA. Collection agents do not need an Oklahoma license.

Oklahoma sets a minimum standard for documentation of delinquent accounts. State-wide, Oklahoma courts require original creditors and collection agents collecting consumer credit card debt to provide the following documentation:

  • A cardmember agreement establishing the terms of the account, or
  • Establish the parties had a previous business relationship and the consumer — either expressly or impliedly — agreed to repay the amount claimed as due (Discover Bank v. Worsham, 176 P.3d 366, 369 (Okla. Ct. App. 2007))

In other words, the Worsham case establishes the original creditor must maintain complete and accurate records during the life of a credit account if it expects to pursue collections through Oklahoma courts.

If an original creditor or collection agent wishes to obtain a default judgment against a consumer, Oklahoma’s Seventh Judicial Circuit requires a creditor to provide the following documentation to a court before it may enter default judgment in the creditor’s favor:

  • Proof of service
  • Servicemember’s affidavit in accordance with the Servicemember’s Civil Relief Act of 2003 and Department of Defense Status Report (many judges require both an affidavit and a screen shot demonstrating that the attorney actually visited the Department of Defense Web site)
  • Proof of breach of last payment
  • Copy of the contract, mortgage, note or account
  • Amount of debt, principle and interest
  • Assignments, if applicable; and
  • Any other item requested by the local judge

Oklahoma state district court judges hold original creditors and collection agents to a very high bar when it comes to establishing their entitlement to damages, costs, or fees on a consumer credit account.

Oklahoma Foreclosure

A lender will foreclose judicially in Oklahoma. This takes about four to six months, typically. Once the homeowner receives a notice of foreclosure, he or she has has 20 to 30 days to respond. Lenders are allowed to collect a deficiency balance, but the amount is limited by the market value of the property. The lender must ask the court for deficiency judgment within 90 days after sale. See OK Stat. Title 12-686, and 12-764 to 765, and 773. And, also see OK Stat. Title 46-41 through 49 (RTF) to learn more.


Consult with a Oklahoma lawyer who is experienced in civil litigation to get precise answers to your questions about liens, levies, garnishment, and foreclosure.

Did you know?

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Housing debt totaled $12.612 trillion and non-housing debt was $4.891 trillion.

According to data gathered by from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

Collection and delinquency rates vary by state. For example, in Nebraska, 16% have student loan debt. Of those holding student loan debt, 5% are in default. Auto/retail loan delinquency rate is 2%.

Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.



DDalilah, Sep, 2022
If my bank account was garnished, how often will it be garnished if the full amount of debt was not paid with the one time garnishment? The collection agency wiped out my account but I didn't have $3,500 in it. Will they continue to pull any money that is desposited into the account? In OKC, thanks!
DDalilah, Sep, 2022
If there has been a bank garnishment, how often will it occur? Until the debt is paid in full? Will the collection company keep pulling all of the money that is deposited into the account? In OKC, thanks! My account was garnished but not for the full amount. They did wipe out my account though. :(
LLina, Aug, 2021

What happens if garnishment continues past 180 day period? What remedies does debtor have in that situation?

JJosh, Aug, 2021

Hello Lina,

Thank you for reaching out and I am sorry you are dealing with this financial stress. please do not take my answer to be legal advice, as I am not an attorney and only attorneys can offer legal advice. I researched some resources and determined you may have the right to speak with the said creditor of debt to determine if amounts have been satisfied and when that will process with the court. In addition, you may receive any additional funds that exceed the Judgement amount.

Here are the resources that were used to determine my response.

Regards, Josh


JJerry, May, 2021

Does anyone know how long it takes a creditor who has a court judgment on you to freeze your account from the day they locate your bank account?

JJosh, Aug, 2021

Hello Jerry,

Thank you for reaching out to us. You did not provide me your residence and the answer to your question will depend on that. Please do not take my answer to be legal advice, as I am not an attorney and only attorneys can offer legal advice. The court may grant a judgment to the creditor. One of the remedies is Levy on the debtor's bank account. unless the court directs otherwise. The procedure on execution and in proceedings must accord with the procedure of the state where the court is located.  According to the article, you should review the state laws to find if and how your bank will be levied. 

Regards, Josh

jjosh mcnaughton, Jan, 2021

I was in a wreck 4-5 years back and did no damage to the "company vehicle" and still got sued i didnt go to court and there for i was not aloud to get my drivers ID which i have never even had. i called today and they said i needed 6.9k to be able to go take my driver test to get my ID. does this not fall off after a certain time period ?

JJosh, Aug, 2021

Hello Josh. 

Thank you for reaching out. Please, do not take my answer to be legal advice as I am not an attorney. Only attorneys can offer legal advice. 

State to state the judgment could have a statute of limitation. We recommend speaking with an attorney to get an exact answer. 

Regards, Josh 

VVee, Jan, 2021

I have some old debts, T-Mobile for cancelling my service early ($900+ $300 in debt collector fees = $1,200) a few store credit cards for $1,000 - $1,500 each. I have done some research online, and found that if I contact the creditors I can request that they REMOVE the debt from my report if I pay it at whatever amount we agree upon. Has anyone done this successfully? I can start paying off some debts if they remove from my report... but I am scared if I contact them I will restart the "clock". Most of my debts are from 2016, when I had a child and was laid off from my job. I haven't made contact with any creditors since the debts became "collection" accounts in 2016. I need my credit cleaned up so I can buy a house. I am 5 years in on most of these debts. Will they fall off my report at 7 years? What do the statute of limitations actually mean to me? I see 3 years for credit cards and 5 for contracts. I am at 5 years, can they stop pursuing me?

JJosh, Aug, 2021

Hello Vee. 

Thank you for reaching out. Please, do not take my answer to be legal advice as I am not an attorney. Only attorneys can offer legal advice. 

According to the article, there is uncertainty about the Oklahoma statute of limitations for credit card debt. It seems like some courts default to 3 years and other default to 5 years. What this means is the collector could not pursue litigation after those years. However, consulting with an attorney would help you get some clarification regarding your negotiations and concerns about restarting the clock. 

I would also recommend using them to consult on how to negotiate your debt. If you find that the lawyers confirm that your debts can not be sent to litigation you might want to check out our affiliate Freedom Debt Relief. They help negotiate your owed debt to a lesser amount. If you are interested please call them at 800-852-1431. 

Regards, Josh