Oregon
Bankruptcy in Oregon (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 17, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 17, 2026. · 5 primary sources cited on this page. How we verify our legal content
Oregon is one of the states that gives bankruptcy filers a choice: you can use Oregon's own exemptions or the federal bankruptcy exemptions, whichever protects more of your property. Bankruptcy itself is federal law, but the exemptions that decide what you keep, and the means-test income that decides which chapter you can use, are state-specific. Oregon's homestead and personal-property exemptions were sharply increased by Senate Bill 1595 (2024), effective for most debts on January 1, 2025, and the homestead now adjusts for inflation each year, so confirm the current figures before relying on them.
This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.
Does Oregon use state or federal bankruptcy exemptions?
Oregon is not an opt-out state. A debtor who files bankruptcy in Oregon may elect to use the Oregon exemptions in ORS 18.395 and ORS 18.345, or instead claim the exemptions allowed under federal law in 11 U.S.C. 522(d). In practice that means an Oregon filer picks one of two complete menus: the state list or the federal list. You cannot mix items from both. About a third of states, including Oregon, allow this choice; roughly two-thirds have opted out and force filers onto state law only.
The choice usually turns on home equity. After the 2024 increases, Oregon's state homestead is far larger than the federal one, so homeowners with meaningful equity often choose the state set, while renters and filers with little home equity sometimes prefer the federal set because of its larger wildcard. Married couples filing jointly can generally each claim a full set of whichever system they choose, which often doubles the protected amounts.
Oregon homestead exemption
Oregon's state homestead exemption is the headline protection for homeowners. Senate Bill 1595, signed in April 2024 and operative January 1, 2025, raised the homestead amount in ORS 18.395 from the old figures of $40,000 single and $50,000 combined to $150,000 for a single owner and $300,000 combined for two or more members of a household who are debtors. The statute provides that the homestead amount is adjusted for inflation, with the recalculated figure taking effect each July 1, so the protected amount for a 2026 filing may be somewhat higher than the base numbers.
There is an important carve-out. The increased amounts do not apply to debts arising from child support, spousal support, or criminal restitution. For those specific debts, the homestead exemption remains the older $40,000 for a single owner and $50,000 combined, and those carve-out figures are not adjusted for inflation.
A filer who would rather use the federal system protects up to $31,575 of home equity under 11 U.S.C. 522(d)(1). Homestead protection covers equity, not the full value of the home, so a residence worth far more than the mortgage plus the exemption can leave non-exempt equity that a Chapter 7 trustee may reach. That is one reason homeowners with substantial equity often look at Chapter 13 instead.
Vehicle, wildcard, and personal-property exemptions
Oregon's personal-property exemptions in ORS 18.345 were also expanded by Senate Bill 1595. The main categories include:
- Motor vehicle: up to $10,000 of equity in one vehicle for ordinary debts, reduced to $3,000 when the debt is for support or restitution.
- Wildcard: up to $400 of interest in any personal property, which cannot be used to increase another exemption.
- Household goods, furniture, and similar items held for personal or family use: up to $3,000.
- Tools of the trade and professional property needed to earn a living: up to $5,000.
- Books, pictures, and musical instruments: up to $600, and wearing apparel, jewelry, and other personal items: up to $1,800.
- Wages: at least 75 percent of disposable earnings are protected from garnishment under ORS 18.385, and retirement accounts are protected under separate state and federal exemptions.
Filers who need a larger wildcard sometimes choose the federal exemptions instead, because 11 U.S.C. 522(d)(5) provides a wildcard of $1,675 plus up to $15,800 of unused homestead exemption. Because several Oregon figures now index for inflation, confirm the current amounts before filing.
The Chapter 7 means test in Oregon
The means test screens Chapter 7 filings for a presumption of abuse. The first step compares your household's current monthly income, annualized, to the median family income for an Oregon household of the same size. If your income is at or below the Oregon median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7. If it is above the median, you complete the longer calculation that subtracts allowed expenses to see whether you have disposable income that should fund a Chapter 13 plan instead.
The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after April 1, 2026, the Oregon median family income is:
| Household size | Oregon median annual income |
|---|---|
| 1 | $79,089 |
| 2 | $93,670 |
| 3 | $116,729 |
| 4 | $140,024 |
Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026. The U.S. Trustee Program revises the median income data roughly twice a year, so confirm the current numbers for your filing date.
Chapter 7 vs. Chapter 13 in Oregon
Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, but because Oregon's exemptions now protect most household property and a large amount of home equity, many Chapter 7 cases are "no-asset" cases where nothing is sold. Most remaining unsecured debt, such as credit cards and medical bills, is discharged in a few months.
Chapter 13 is a reorganization for filers with regular income. You keep your property and repay some or all of what you owe through a three-to-five-year plan. Chapter 13 is often chosen by homeowners who are behind on a mortgage, because the plan can spread out the missed payments and stop a foreclosure while you catch up. If a foreclosure sale is already on the calendar, ask an Oregon lawyer for a free bankruptcy evaluation on a Chapter 13 filing before that date (attorney advertising).
In both chapters, filing triggers the automatic stay under 11 U.S.C. 362. The stay immediately halts most collection activity, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.
Where you file bankruptcy in Oregon
Oregon is a single federal judicial district, so all Oregon bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Oregon. The court has offices in Portland and Eugene, and which office handles your case depends on the county where you live. Before filing, federal law requires you to complete an approved credit-counseling course, and you must complete a debtor-education course before your debts are discharged.
What bankruptcy can and cannot do
Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a car loan or mortgage continue if you want to keep the collateral and keep paying.
Because exemption amounts change, and the choice between the state and federal exemption menus and between Chapter 7 and Chapter 13 depends on your full financial picture, many people consult a licensed Oregon bankruptcy attorney before filing.
Frequently Asked Questions
Does Oregon use state or federal bankruptcy exemptions?
Oregon lets you choose. It has not opted out of the federal exemptions, so a filer domiciled in Oregon may use either the state exemptions in ORS 18.395 and ORS 18.345 or the federal bankruptcy exemptions in 11 U.S.C. 522(d). You pick one full menu, not a mix of both.
What is the homestead exemption in Oregon?
For ordinary debts, Oregon's homestead exemption under ORS 18.395 protects up to $150,000 of equity for a single owner and up to $300,000 combined for two or more household members, with annual inflation adjustments effective each July 1. A lower cap of $40,000 single and $50,000 combined applies only to support and restitution debts. The federal alternative is $31,575. Confirm the current amount before filing.
What is the Oregon median income for the means test?
For cases filed on or after April 1, 2026, the Oregon median family income is $79,089 for 1 person, $93,670 for 2, $116,729 for 3, and $140,024 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.
Will I lose my house or car if I file bankruptcy in Oregon?
Often no. Oregon's homestead exemption of up to $150,000 (or $300,000 for two or more household members) and a vehicle exemption of up to $10,000 protect equity up to those limits for ordinary debts. Most filers keep their home and car as long as they stay current on the related loans, though equity above the exemption can be at risk in Chapter 7.
Can I use the federal bankruptcy exemptions in Oregon?
Yes. Because Oregon has not opted out, you may choose the full federal exemption set in 11 U.S.C. 522(d) instead of the Oregon exemptions. Filers with little home equity sometimes prefer the federal set for its larger wildcard, while homeowners with substantial equity often choose Oregon's higher homestead.
Where do I file for bankruptcy in Oregon?
Oregon is a single federal district, so all cases are filed in the U.S. Bankruptcy Court for the District of Oregon, which has offices in Portland and Eugene. The office that handles your case depends on your county. You must complete approved credit counseling before filing.
What debts cannot be discharged in an Oregon bankruptcy?
Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud generally are not discharged. Most credit-card and medical debt usually is.
Does filing bankruptcy stop a foreclosure in Oregon?
Filing triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection activity, including foreclosure and wage garnishment. Chapter 13 can also let a homeowner cure missed mortgage payments over time.
Updates
Clarified that income at or below the state median means the presumption of abuse does not arise under the Chapter 7 means test, not that a filer qualifies for Chapter 7.
Repointed the homestead and personal-property exemption citations from a stale third-party statute mirror to the official Oregon Legislature ORS text; the page's own figures were already correct.
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
United States Code Title 11
§ 522ExemptionsIn forcecited in 54 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test
§ 362Automatic stayIn forcecited in 54 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Arizona (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test
Sources and References
- ORS 18.395, Oregon homestead exemption (as amended by Senate Bill 1595, 2024 c.100), current $150,000/$300,000 amounts and the $40,000/$50,000 support/restitution carve-out -- official Oregon Legislature ORS chapter 18 text(oregonlegislature.gov).gov
- Oregon Senate Bill 1595 (2024 Regular Session, enrolled), raising the ORS 18.395 homestead exemption to $150,000/$300,000 and the ORS 18.345 motor-vehicle exemption to $10,000, operative January 1, 2025(olis.oregonlegislature.gov).gov
- ORS 18.345, Oregon exempt personal property generally (motor vehicle, wildcard, tools of trade, household goods) -- official Oregon Legislature ORS chapter 18 text(oregonlegislature.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by family size, cases filed on or after July 15, 2026 (figures unchanged from the April 1, 2026 table for Oregon)(justice.gov).gov
- 11 U.S.C. 522, exemptions, including the state opt-out authority in 522(b) and the federal exemption schedule in 522(d)(law.cornell.edu)
- U.S. Bankruptcy Court for the District of Oregon (Portland and Eugene)(orb.uscourts.gov).gov
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