Bankruptcy Attorney Oregon: Chapter 7 vs 13, Exemptions & Means Test (2026)
Facing unmanageable debt, wage garnishment, or foreclosure in Oregon? This guide covers Chapter 7 versus Chapter 13, Oregon's choice between state and federal exemptions, the ORS 18.395 homestead, the $10,000 vehicle exemption, Means Test thresholds, and the federal court that serves the state.
Navigating Debt Relief in the State of Oregon
From Portland and Beaverton to Eugene, Bend and Medford, a layoff, medical bill or failed venture can push Oregon households into unsustainable debt. Federal bankruptcy law offers a lawful path to discharge debt or restructure it into an affordable court-supervised plan.
Working with an experienced Oregon bankruptcy attorney is especially valuable here because Oregon is not an opt-out state. Filers may choose Oregon's exemptions or the federal list, one complete menu or the other, and the right choice depends on home equity, vehicle equity and how long you have owned your home.
Chapter 7 vs. Chapter 13: Choosing the Right Path
Chapter 7: Fresh Start Liquidation
Often called straight bankruptcy, Chapter 7 discharges qualifying unsecured debts such as credit cards, medical bills and personal loans in roughly 3 to 5 months. A trustee reviews your petition for non-exempt assets, so homeowners with substantial equity should compare Oregon's homestead with the federal option before filing.
- Discharges unsecured debts within roughly 90–120 days
- Requires passing the Means Test
- No mandatory debt repayment plan
Chapter 13: Wage Earner Restructuring
Designed for individuals with steady income who exceed Chapter 7 limits, owe non-dischargeable debt, or need to cure mortgage arrears. Chapter 13 sets a 3- to 5-year repayment plan, letting Oregon homeowners stop foreclosure, catch up on missed payments, and keep equity above the exemption limits by paying creditors its value over time.
- Curbs mortgage defaults and can stop a foreclosure sale
- Consolidates obligations into one monthly payment
- Protects non-exempt property that would otherwise be sold
Oregon's State-or-Federal Exemption Choice
Oregon has never opted out of the federal exemption scheme, so a debtor may elect the Oregon exemptions or the federal 11 U.S.C. § 522(d) exemptions, one complete menu or the other. To use Oregon's exemptions you must satisfy the 730-day domicile rule in 11 U.S.C. § 522(b)(3)(A). Homestead and some other amounts are adjusted for inflation each July 1, so confirm current figures with an attorney.
Homestead Exemption (ORS § 18.395)
Oregon's homestead exemption protects up to $158,300 of equity for a single owner and $316,700 when two or more co-owning debtors reside in the home, as adjusted July 2026. It covers homes, manufactured homes and similar principal residences. If you acquired your home within 1,215 days of filing, 11 U.S.C. § 522(p) can cap the amount you may protect.
Vehicle & Personal Property Exemptions
Under ORS § 18.345(1)(d) Oregon protects up to $10,000 of equity in one motor vehicle. Oregon's exemptions also cover household furnishings, clothing, tools of the trade, bank accounts within statutory limits, and retirement accounts. Married couples filing jointly who share ownership can often double many limits.
Key Oregon Bankruptcy Statutes & Rules
| Statutory Element | Oregon Rule & Federal Code |
|---|---|
| Exemption System | Oregon is not an opt-out state: debtors may elect Oregon exemptions or the federal exemptions in 11 U.S.C. § 522(d), but not both. |
| Homestead Exemption | ORS § 18.395: $158,300 single owner, $316,700 for two or more co-owning debtors (as adjusted July 2026). |
| Personal Property Exemptions | ORS § 18.345: $10,000 vehicle equity in one vehicle, household goods, tools of the trade, and retirement accounts. |
| The Automatic Stay | 11 U.S.C. § 362: halts foreclosure sales, repossessions, lawsuits and wage garnishments on filing. |
| Means Testing Period | 11 U.S.C. § 707(b): six-month historical income compared against Oregon median income. |
| Mandatory Credit Counseling | 11 U.S.C. § 109(h): briefing from a UST-approved agency within 180 days before filing. |
Source: Oregon Revised Statutes §§ 18.345 and 18.395; U.S. Bankruptcy Code (Title 11). Dollar limits are adjusted periodically — confirm current figures with a licensed Oregon attorney.
Oregon Federal Bankruptcy Courts
Oregon is a single federal bankruptcy district, the U.S. Bankruptcy Court for the District of Oregon, with court locations in Portland and Eugene. Use the city links below to find attorneys near you:
Frequently Asked Questions: Oregon Bankruptcy
Can I use federal bankruptcy exemptions in Oregon?
Yes. Oregon is not an opt-out state, so a filer may choose either the Oregon exemptions (ORS Chapter 18) or the federal exemptions in 11 U.S.C. § 522(d), but not a mix of both. You must also have been domiciled in Oregon for 730 days to use Oregon's exemptions, so the better choice depends on your equity and residency history.
How much home equity does the Oregon homestead exemption protect?
Under ORS § 18.395, an Oregon homestead is protected up to $158,300 of equity for a single owner and $316,700 when two or more co-owning debtors live in the home, as adjusted in July 2026. If you acquired the home within 1,215 days before filing, 11 U.S.C. § 522(p) can limit the amount you may protect.
How does the Means Test determine Chapter 7 eligibility in Oregon?
The Means Test compares your average gross household income over the six months before filing against the Oregon median income for your household size. At or below the median, you generally qualify for Chapter 7. Above it, a second calculation of IRS-allowed expenses determines whether you have enough disposable income that Chapter 13 may be required.
How does the automatic stay protect Oregon debtors?
Under 11 U.S.C. § 362, filing a bankruptcy petition triggers an immediate injunction called the automatic stay. It halts collection calls, pending wage garnishments, lawsuits, foreclosure sales and vehicle repossessions as soon as the petition is filed, subject to the Bankruptcy Code's exceptions.
Which federal bankruptcy court handles my Oregon case?
Oregon is a single federal bankruptcy district, the District of Oregon, with court locations in Portland and Eugene. Your case is filed with the court that serves your county of residence.
Can taxes and student loans be discharged in a Oregon bankruptcy?
Income taxes can be discharged in Chapter 7 or Chapter 13 only if they satisfy the federal 3-2-240 rule (return due at least 3 years before filing, filed at least 2 years before, assessed at least 240 days before, and no fraud). Most federal and private student loans remain non-dischargeable absent a showing of undue hardship, and domestic support obligations are never discharged.
Related Legal Resources Near Oregon
Bankruptcy Attorney Washington Guide
Compare Oregon's exemption choice with neighboring Washington.
Bankruptcy Attorney California Guide
See how California handles bankruptcy exemptions.
Bankruptcy Attorney Nevada Guide
Review another western state's exemption framework.
Bankruptcy Attorney Arizona Guide
Compare Oregon's homestead with Arizona's opt-out limits.
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