{"id":286871,"date":"2021-04-23T06:57:28","date_gmt":"2021-04-23T11:57:28","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/oregon-bankruptcy-exemptions-and-law.html"},"modified":"2026-07-10T10:31:36","modified_gmt":"2026-07-10T15:31:36","slug":"oregon-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/oregon-bankruptcy-exemptions-and-law.html","title":{"rendered":"Oregon Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
\n

Oregon Bankruptcy Exemptions and Law<\/h1>\n\n
\n
\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

Oregon<\/span> bankruptcy laws<\/span> allow financially overwhelmed residents to eliminate or restructure their debts under the federal bankruptcy code<\/span> while using specific state-level exemptions. The Chapter 7 or Chapter 13 <\/span>bankruptcy<\/span> process<\/span> triggers an automatic stay that halts creditor collections, foreclosures<\/span>, and wage garnishments<\/span>.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Oregon<\/span> bankruptcy law<\/span> primarily follows the federal bankruptcy code<\/span>. However, like most states, Oregon<\/span> has its own state exemptions<\/span> for debtors within the state. There are requirements debtors must meet to qualify for bankruptcy in Oregon<\/span>, including residency and income requirements.<\/p>\n

It is a good idea to get legal help<\/span> during the bankruptcy process<\/span> while you fill out the forms and file your bankruptcy petition<\/span>. We\u2019ll review the steps to filing an Oregon<\/span> bankruptcy and when you should consult an attorney for legal advice<\/span><\/a>.<\/p>\n

Oregon<\/span> Bankruptcy Law<\/span><\/h2>\n

The federal bankruptcy code<\/span><\/a> controls how a bankruptcy case<\/span> proceeds in court. However, each state has its own set of exemptions, such as homestead exemptions<\/span><\/a>, which allow residents to keep some of their assets and personal items<\/span>. The goal of bankruptcy is to give debtors a fresh start<\/span>, not to wipe them out completely. In Oregon<\/span>, there are two primary types of bankruptcy<\/span> filings.<\/p>\n

Chapter 7 Bankruptcy<\/span><\/h3>\n

A Chapter 7,<\/a> sometimes known as a liquidation<\/span> bankruptcy, is used by debtors with few assets and a large amount of unsecured debt, such as medical bills<\/span> and credit card<\/span> debt. In Chapter 7 bankruptcy<\/span>, the\u00a0bankruptcy trustee<\/span>\u00a0takes charge of your assets and sells them to pay\u00a0your creditors. Your unsecured debts are discharged.<\/p>\n

To file a Chapter 7, you must pass a means test<\/span><\/a>. If your annual household income is below the state median, you automatically qualify for Chapter 7. If it is slightly above that amount, the trustee looks at your overall financial situation<\/span>.<\/p>\n

Chapter 13 Bankruptcy<\/span><\/h3>\n

A Chapter 13 bankruptcy<\/span><\/a> is also called a \u201creorganization.\u201d It is used by people facing foreclosure<\/span> who do not want to lose their house, and others with valuable non-exempt assets. In a Chapter 13, the debtor and trustee arrange a three- to five-year\u00a0repayment plan<\/span>\u00a0to pay the creditors. As long as you stay current on the monthly payment plan<\/span>, the remaining debt is discharged at the end of the repayment period.<\/p>\n

A Chapter 13 plan requires a stable income and the ability to make the monthly payments. It is ideal for homeowners who have fallen behind on their mortgage due to other outstanding debts and need breathing room to clear those debts and catch up on their payments.<\/p>\n

Automatic Stay<\/h3>\n

After filing either type of bankruptcy<\/span>, an automatic stay<\/a> goes into effect. The automatic stay immediately stops most kinds of debt collection efforts, such as:<\/p>\n