By: Casey Yontz, Attorney (18+ years bankruptcy experience)

Last updated: November 21, 2025

About the Author

Understanding Oregon Bankruptcy Exemptions: A Guide

When people in financial crisis start thinking about bankruptcy, one of the first questions they ask is, “What am I allowed to keep?” The answer in Oregon comes from Oregon bankruptcy exemptions. These rules decide which assets are protected if you file, from your home and car to your household goods. This guide walks through the key Oregon state bankruptcy exemptions in plain English so you can see how they may affect your day-to-day life, not just numbers on a court form.

In practical terms, bankruptcy exemptions are legal protections that keep specific property off-limits to creditors and the bankruptcy trustee. The goal is not to leave you with nothing, but to allow you to maintain a basic, stable standard of living while you deal with overwhelming debt. Used correctly, the bankruptcy exemptions Oregon law provides can be the difference between starting over with a foundation and starting over from scratch.

Every state has its own exemption system, and some allow you to choose between state and federal exemptions. Oregon is one of those states. If you file here, you can usually choose between Oregon state bankruptcy exemptions and the federal exemption scheme, but you have to pick one set or the other—you cannot mix and match. Throughout this guide, we will walk through the major Oregon protections and highlight bankruptcy exemptions federal vs Oregon so you can see which approach may work better for your situation in chapter 7 or chapter 13.

Key Oregon Bankruptcy Exemptions

When you choose to use the Oregon state bankruptcy exemptions instead of the federal exemption list, these are the core protections that decide what you can keep in chapter 7 or chapter 13. The Oregon bankruptcy exemptions are meant to preserve a basic, workable standard of living—things like a roof over your head, a vehicle to get to work, and essential household items.

Most personal property protections come from ORS 18.345, while the homestead exemption for your residence is found in ORS 18.395 and related sections. Amounts can change over time (and some are now tied to inflation), so always confirm the current figures with an Oregon bankruptcy attorney or by checking the latest statutes before you file.

Oregon Homestead Exemption

For most people, the homestead is the heart of the Oregon bankruptcy exemptions. If you choose the Oregon state system, you can generally protect at least $150,000 in equity in your primary residence if you are the only owner, and at least $300,000 if two or more members of the same household own the home together. Because the homestead exemption is now tied to inflation, those numbers are scheduled to adjust upward over time.

In plain English, that means many homeowners can keep a substantial amount of home equity even in a chapter 7 case. There are important exceptions, though: when a creditor is collecting child support, spousal support, or restitution, Oregon law may limit the homestead to the older $40,000 / $50,000 amounts. The details can get technical quickly, so if you have significant equity or family-law obligations, it’s especially important to talk with an Oregon bankruptcy attorney before filing.

Motor Vehicle Exemption

Reliable transportation is essential, and the updated Oregon bankruptcy exemptions reflect that reality. Under the state exemption system, most filers can protect up to $10,000 in equity in one vehicle per debtor. If your car is worth less than the exemption after subtracting any loan balance, your equity is fully protected. If your car is worth more, you may still be able to keep it in chapter 13 by restructuring the debt instead of risking a sale in chapter 7.

For certain creditors—again, mainly child support, spousal support, or restitution—the vehicle exemption can drop to $3,000. That’s one reason strategy matters: the choice between Oregon state exemptions and the federal system, and between chapter 7 and chapter 13, can make a big difference in how your vehicle is treated.

Personal Property Exemptions

Oregon also protects everyday items that keep your household functioning. These protections are modest on paper, but in practice they often cover most or all of what a typical family owns because values are measured at used, second-hand prices—not what you originally paid at the store.

• Clothing, jewelry & personal items: Up to $1,800 total in wearing apparel, basic jewelry, and other personal items per debtor.
• Household goods & furnishings: Up to $3,000 in furniture, appliances, electronics, and similar household goods, plus food and fuel for about 60 days.
• Tools of the trade: Up to $5,000 in the tools, equipment, or professional books you need to earn a living—often effectively doubled if both spouses work in the same trade and file together.

These core personal-property protections under the bankruptcy exemptions Oregon law provides are often enough to keep your ordinary household intact, especially when combined with the wildcard exemption described next.

Wildcard Exemption

Oregon’s wildcard exemption is small compared to the federal wildcard, but it can still be very useful. Each debtor can protect up to $400 in any personal property of their choice—$800 total in a joint case. People often use the wildcard to “patch” small amounts of exposed equity in a vehicle, a bank account, or a sentimental item that doesn’t fit neatly into another category.

One important limitation: the wildcard under the Oregon state bankruptcy exemptions cannot be stacked on top of another Oregon exemption to increase its dollar limit. It stands on its own, which is one of the key differences when you compare bankruptcy exemptions federal vs Oregon.

Retirement Accounts and Pensions

For many people, retirement savings are their single largest asset—and also the one they are most afraid of losing. The good news is that most tax-qualified retirement accounts (401(k)s, many employer pensions, and IRAs) are heavily protected under both Oregon law and federal law. In most consumer cases, these accounts are fully exempt whether you file chapter 7 or chapter 13, as long as the funds stay inside the retirement plan.

In a practical sense, that means the decision to use Oregon state exemptions versus federal exemptions is usually more about your home equity, vehicle equity, and personal property than about retirement funds. Still, because the rules can be complex—and because mistakes with retirement withdrawals can be costly—it’s wise to review your full financial picture with a knowledgeable Oregon bankruptcy attorney before you file.

Oregon Bankruptcy Exemptions and Federal Exemptions

If you file in Oregon, you typically have a choice: you can use the Oregon bankruptcy exemptions or the federal exemption system found in 11 U.S.C. § 522(d). You must pick one set or the other—you cannot mix and match individual exemptions from both lists. The “best” option often depends on your goals in chapter 7 or chapter 13 and how your assets are structured.

For many Oregon homeowners with substantial equity, the Oregon chapter 7 bankruptcy exemptions for homestead can be far more generous than the federal homestead. On the other hand, the federal system offers a much larger wildcard and more flexible protection for renters or people whose wealth is in cash, modest vehicles, or personal property. Understanding bankruptcy exemptions federal vs Oregon is critical before you decide how to file.

The table below summarizes some of the most important federal exemptions for individual filers. These amounts are periodically adjusted for inflation, and married couples who file together can usually double the amounts by each claiming the exemption.

Federal Homestead Exemption

The federal homestead exemption protects a slice of equity in your primary residence: up to $31,575 for one debtor and typically up to $63,150 for a married couple filing together. Compared with the expanded Oregon homestead, this federal amount is often smaller, which is why many homeowners with significant equity lean toward the Oregon bankruptcy exemptions instead. For renters or people with little home equity, however, the federal system can still make sense because of its powerful wildcard.

Federal Motor Vehicle Exemption

Under the federal system, you can shield up to $5,025 of equity in one vehicle per debtor. If your car is worth less than that after subtracting any loan balance, your equity is usually fully protected in chapter 7. If the equity is higher, you may still be able to keep the vehicle in chapter 13 by restructuring the loan over the length of the repayment plan.

Federal Wildcard Exemption

The federal wildcard is often the deciding factor in bankruptcy exemptions federal vs Oregon, especially for renters. When you add the base wildcard amount and the unused homestead portion together, you can protect up to $17,475 in “anything you care about most”—cash in the bank, a paid-off car, a tax refund, or personal items that would otherwise be exposed.

By contrast, the Oregon wildcard is only $400 per debtor under the state system. That means someone with little or no home equity but meaningful cash, savings, or vehicle equity may be better off choosing the federal exemptions, while a homeowner with substantial equity might favor the Oregon chapter 7 bankruptcy exemptionsfor homestead instead.

Other Key Federal Exemptions

The federal exemption list rounds out your protection with categories for household goods, jewelry, tools of the trade, public benefits, and retirement accounts. Most people using the federal scheme find that:

• Household goods & clothing are usually safe because they are valued at second-hand prices and fall within the item and aggregate caps.
• Tools of the trade allow working people to keep the equipment they need to earn a living, even after filing.
• Retirement accounts and core public benefits (like Social Security) stay protected so you are not forced to drain your future to solve today’s crisis.

Choosing Between Federal and Oregon Exemptions

Deciding between the federal system and the Oregon state bankruptcy exemptions is a strategic choice. For some filers, especially homeowners with meaningful equity, the Oregon homestead and vehicle exemptions will dominate the analysis. For others—often renters or people with modest assets but larger cash or vehicle equity—the federal wildcard can be a game-changer.

Because this choice affects what you keep in both chapter 7 and chapter 13, it is worth sitting down with a knowledgeable Oregon bankruptcy attorney before you file. A detailed review of your home, vehicles, personal property, income, and debts can help you decide which exemption system will best protect your fresh start.

How to Claim Oregon Bankruptcy Exemptions

Choosing between the federal system and the Oregon state bankruptcy exemptions is only the first step. To actually receive the protection of the Oregon bankruptcy exemptions you select, you have to claim them correctly on your bankruptcy paperwork. That means listing every asset, assigning a realistic value, and matching each item to the proper exemption category.

In a typical consumer case, you will list what you own on your property schedules (such as Official Form 106A/B for real and personal property) and then claim your bankruptcy exemptions Oregon or federal exemptions on Schedule C (Official Form 106C). The court and the chapter 7 or chapter 13 trustee will rely heavily on what you put in those forms, so accuracy and consistency matter.

• 1. Take a complete inventory of what you own. Start by listing your home, vehicles, bank accounts, household goods, tools, retirement accounts, and any other assets—even if you think they are “worth nothing.” Omitting property can cause serious problems, even when it was an innocent mistake.
• 2. Use realistic, second-hand values. For most personal property, the question is what an item would sell for at a garage sale or on a used marketplace, not what you originally paid. For real estate and vehicles, debtors often use recent market data, online valuation tools, or professional opinions where appropriate.
• 3. Match each asset to a specific exemption. Once you know the value, you (or your attorney) decide whether to use the federal system or the Oregon chapter 7 bankruptcy exemptions (or the same Oregon system in chapter 13), then assign each item to the best-fitting category—homestead, vehicle, personal property, tools of the trade, wildcard, retirement, and so on.
• 4. Complete Schedule C carefully. This is where you officially claim your exemptions. You will identify the statute (for example, ORS 18.395 for homestead or ORS 18.345 for many personal property items) and the amount of the exemption you are claiming in each asset. Small clerical errors can sometimes be fixed, but a clean, well-documented Schedule C makes the process smoother.
• 5. Be prepared to explain your numbers. At the meeting of creditors (the “341 meeting”), the trustee may ask how you arrived at certain values or why a particular exemption was used. Having your notes, online printouts, or appraisals handy can help support your position and protect the chapter 7 bankruptcy Oregon exemptions or chapter 13 protections you are relying on.

Technically, you can fill out the forms on your own. In practice, the choice between bankruptcy exemptions federal vs Oregon, combined with the detailed valuation and form requirements, makes it wise to work with a knowledgeable Oregon bankruptcy attorney. A short strategy session can help you avoid costly mistakes, maximize the exemptions available to you, and position your case for the cleanest possible fresh start.

The Impact of Exemptions on Chapter 7 and Chapter 13 Bankruptcy

The type of bankruptcy you file has a huge effect on how the Oregon bankruptcy exemptions actually play out in real life. In Chapter 7, exemptions mainly determine what the trustee is allowed to sell. In Chapter 13, the same exemptions help set the baseline for how much you must pay unsecured creditors over time.

Whether you use the federal exemptions or the Oregon state bankruptcy exemptions, the core idea is the same: the more of your property that is fully protected, the easier it is to keep your assets in chapter 7 and to propose an affordable repayment plan in chapter 13. That is why getting the bankruptcy exemptions federal vs Oregon choice right is so important before you file.

Chapter 7 Bankruptcy & Oregon Exemptions

In chapter 7, the trustee’s job is to gather and sell non-exempt assets to pay creditors—if there are any. The Oregon chapter 7 bankruptcy exemptions (or the federal system, if you choose that route) act as a shield around your property. As long as an item is fully covered by an exemption, the trustee generally cannot take it and sell it.

For many people, chapter 7 in Oregon ends up being a “no-asset” case. That means all of their property is either fully covered by the chapter 7 bankruptcy Oregon exemptions they claimed, or it is worth so little at used, second-hand value that the trustee is not interested in it. In those cases, unsecured debts can be wiped out while the debtor keeps their home, vehicle, household goods, and retirement accounts. For a deeper dive into how this works in practice, you can review our Oregon Chapter 7 guide.

• Fully exempt assets: If your home equity, vehicle equity, and personal property all fit within the limits of the exemptions you chose, the trustee will typically “abandon” those assets and you keep them.
• Partially exempt assets: If an item is worth more than the available exemption—say your car has $14,000 in equity and you can only protect $10,000—the trustee might explore selling it, negotiating a buy-back, or letting you consider a different strategy (for example, using chapter 13 instead of chapter 7).
• Non-exempt assets: In a smaller number of cases, something like a second home, valuable collectibles, or a high-equity vehicle may fall outside the bankruptcy exemptions Oregon law provides. Here, the trustee may sell the asset, pay costs of sale, and distribute the remaining funds to creditors.

Because chapter 7 is designed to move quickly, you usually do not get a second chance to rearrange assets after you file. That makes it crucial to analyze your property, choose between the federal system and the Oregon state exemptions, and apply those exemptions strategically before you ever sign your petition.

Chapter 13 Bankruptcy

Chapter 13 works very differently. Instead of selling non-exempt assets, you propose a three- to five-year repayment plan. The Oregon bankruptcy exemptions (or federal exemptions, if you choose those) matter because they help determine your minimum required payment to unsecured creditors. The more of your property that is exempt, the less pressure there is to pay a high amount into the plan.

In simple terms, your plan must usually pay unsecured creditors at least as much as they would have received in a hypothetical chapter 7 case. That’s called the “best interests of creditors” test. If you have significant non-exempt equity—say in a second vehicle, a rental, or cash that is not covered by the Oregon state bankruptcy exemptions—your monthly chapter 13 payment may need to be higher to satisfy that test.

• Protecting assets: Chapter 13 can be a powerful option if you have non-exempt equity you do not want to lose in chapter 7. You keep the asset and pay creditors over time instead of facing liquidation.
• Managing arrears: If you are behind on a mortgage or car loan, chapter 13 lets you use your plan to catch up while still relying on the bankruptcy exemptions Oregon provides to protect your basic property.
• Flexibility with income: People with steady income often prefer chapter 13 because it allows them to restructure debts, deal with tax claims, and manage non-exempt assets more flexibly than in chapter 7.

If you are unsure whether chapter 7 or chapter 13 is the better fit, it can help to compare your situation against both systems side by side. Our Oregon Chapter 7 and Chapter 13 pages walk through the process, timelines, and common strategies in more detail so you can see how the exemption choices play out in each chapter.

Oregon Bankruptcy Exemptions FAQ

What Are Oregon Bankruptcy Exemptions?

Oregon bankruptcy exemptions are specific laws that tell the court and the trustee what you are allowed to keep if you file bankruptcy in Oregon. When you choose the Oregon state bankruptcy exemptions, they protect things like your homestead, vehicle, household goods, tools of the trade, retirement accounts, and even certain tax credits and public benefits. The goal is not to strip you bare, but to let you maintain a basic, stable standard of living while you deal with overwhelming debt.

Can I Choose Between Oregon And Federal Bankruptcy Exemptions?

Yes. Under Oregon law, most residents can choose either the federal exemption system under 11 U.S.C. § 522(d) or the Oregon bankruptcy exemptions under state law—but you must pick one set or the other for your case. You cannot mix and match federal and state exemptions. In many Oregon cases, homeowners with significant equity favor the oregon chapter 7 bankruptcy exemptions for homestead, while renters or filers with more cash and personal property sometimes benefit from the larger federal wildcard. The choice is highly fact-specific, so talking with an Oregon bankruptcy attorney before you file is critical.

Are Health Savings Accounts Exempt In Bankruptcy In Oregon?

In most cases, yes—if you choose the Oregon state bankruptcy exemptions. Oregon law specifically protects a debtor’s rights in a qualified medical savings account or health savings account (HSA) that is authorized under the Internal Revenue Code. That means a properly structured HSA is typically 100% exempt when you use bankruptcy exemptions Oregon law provides. However, if you elect the federal exemption system instead of Oregon’s, you do not get this Oregon-specific HSA protection and the account may be treated more like ordinary cash or a bank account. Contributions made right before filing or funds withdrawn from the HSA can also raise issues, so you should review your specific account history with an Oregon bankruptcy attorney before you file.

Can I Exempt My Home In A Bankruptcy In Oregon?

Often, yes. Oregon’s homestead exemption is one of the most important oregon bankruptcy exemptions. If you choose the state system, most homeowners can protect at least $150,000 in equity in their primary residence if there is a single owner, and at least $300,000 in equity if two or more members of the same household own the home together. Because the homestead is now tied to inflation, those numbers are scheduled to increase over time. As long as your equity fits within the applicable limit and you keep paying your mortgage, you can usually keep your home in chapter 7 and use chapter 13 to catch up on missed payments if needed.

There are important exceptions. When a creditor is collecting child support, spousal support, or criminal restitution, Oregon law may limit the homestead to the older $40,000 / $50,000 amounts. Rental property, second homes, and vacation cabins do not receive the same level of protection as a true homestead. Because the numbers and rules are technical, anyone with significant home equity should get personalized advice from an Oregon bankruptcy attorney before filing.

Do Oregon Bankruptcy Exemptions Apply In Both Chapter 7 And Chapter 13?

Yes, but they matter in different ways. In chapter 7, the Oregon bankruptcy exemptions (or the federal exemptions, if you choose those) determine what the trustee is allowed to sell. If everything you own is fully covered, your case is usually a “no-asset” case and unsecured creditors receive nothing. In chapter 13, exemptions feed into the “best interests of creditors” test, which requires your plan to pay unsecured creditors at least as much as they would have received in a hypothetical chapter 7. The more property that is exempt, the lower your minimum required chapter 13 plan payment to unsecured creditors can be.

What Happens If My Property Is Worth More Than The Exemption Amount?

If an asset is worth more than the applicable exemption—say a car with $14,000 in equity when you can only protect $10,000—the extra value is considered “non-exempt.” In chapter 7, the trustee may consider selling the asset, negotiating a buy-back with you (where you pay the non-exempt portion over time), or, in some cases, simply abandoning it if the cost of sale would eat up most of the value. In chapter 13, non-exempt equity usually increases the minimum payment you must make to unsecured creditors over the life of the plan. This is why it is so important to value your property realistically and choose strategically between bankruptcy exemptions federal vs Oregon.

Are Retirement Accounts And Pensions Protected In Oregon Bankruptcy?

In most consumer cases, yes. Many tax-qualified retirement accounts—such as 401(k)s, many employer pensions, and IRAs— are strongly protected under a mix of Oregon statutes and federal law. When handled correctly, these retirement assets are typically fully exempt whether you file chapter 7 or chapter 13, as long as the money remains in the account. The bigger risks arise when people borrow against, cash out, or roll over funds right before filing. Because those transactions can change how exemptions apply, it is wise to talk with an Oregon bankruptcy attorney before moving money in or out of retirement accounts if you are even thinking about bankruptcy.

Do I Still Need A Lawyer If The Exemptions Look Straightforward?

Even when the basic Oregon bankruptcy exemptions seem simple, the details can make or break your case. Timing, recent transfers, how title is held, prior bankruptcies, and your choice between federal and Oregon exemptions can all affect what you actually keep in chapter 7 or pay in chapter 13. This FAQ is for general education only and is not legal advice. Before you rely on any oregon chapter 7 bankruptcy exemptions or bankruptcy exemptions federal vs Oregon comparison in a real filing, you should consult directly with an experienced Oregon bankruptcy attorney about your full financial picture.

Oregon Bankruptcy Exemptions: Key Takeaways And Next Steps

Understanding how Oregon bankruptcy exemptions work is one of the most important parts of planning a successful case. The Oregon state bankruptcy exemptions are designed to protect your home, vehicle, household goods, retirement accounts, and other essentials so you are not starting from zero after you file. When you know how the bankruptcy exemptions Oregon law provides are applied—and where they are stronger or weaker than the federal system—you can make much more confident decisions about timing, chapter choice, and strategy.

For homeowners, the homestead and Oregon chapter 7 bankruptcy exemptionscan make the difference between keeping or losing hard-earned equity. For renters or people whose wealth is in cash, vehicles, or personal property, it may be just as important to compare the chapter 7 bankruptcy Oregon exemptions with the federal wildcard and other protections. The same exemption choices also matter in chapter 13, where they influence how much you must pay unsecured creditors over the life of your repayment plan.

In short, the choice between bankruptcy exemptions federal vs Oregon is not just a technical checkbox—it shapes your fresh start. Reviewing this guide, visiting our main Oregon bankruptcy information page, taking a close look at our Oregon Chapter 7 and Chapter 13 pages, and talking with an experienced Oregon bankruptcy attorney can help you turn a confusing set of rules into a clear, step-by-step plan to rebuild your finances with the maximum protection the law allows.

Explore Bankruptcy Help by State

Browse our state guides to learn exemptions, means test rules, costs, and local procedures. Use these links to jump between states and compare your options.

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