Oregon’s Chapter 13 filers get a real choice most states don’t offer: state exemptions or federal exemptions, whichever protects more. Combined with a homestead exemption that adjusts upward every July 1 for inflation, Oregon gives filers more room to negotiate a manageable liquidation test floor than most neighboring states — which directly affects how much a repayment plan actually costs unsecured creditors.
How Chapter 13 Works in Oregon
You file a petition and propose a repayment plan lasting three to five years. A standing Chapter 13 trustee collects your monthly payment and distributes it to creditors — secured debts first, then priority claims, then unsecured creditors get whatever’s left. You keep all your property throughout, and remaining qualifying unsecured debt is discharged when the plan completes.
The exemptions you claim set your plan’s liquidation test floor — the minimum unsecured creditors must receive, equal to what they’d get in a hypothetical Chapter 7 sale of your assets.
Should You Use Oregon or Federal Exemptions in Chapter 13?
Oregon lets you choose between state and federal exemptions, but only if you've lived in Oregon for at least two years before filing. Shorter residents typically must use the exemptions of the state they lived in before. Oregon’s homestead exemption protects $158,300 in home equity for a single filer, or $316,700 combined for two household members claiming it jointly. Adjusted for inflation every July 1. Homeowners with meaningful equity generally do better under Oregon’s own exemption list, since it’s larger than the federal homestead allowance. Renters or filers with little home equity sometimes come out ahead under the federal system’s larger wildcard provision — a decision worth running past an attorney given how directly it affects the plan’s cost.
Why Oregon Filers End Up in Chapter 13
Mortgage arrears are the most common driver — a period of missed payments a filer wants to catch up on without losing the house, especially valuable in a state where home values have appreciated significantly in many markets. Income above the means test threshold is the second major factor, pushing higher earners into a repayment plan even when they don’t have significant unprotected assets.
Do You Qualify for Chapter 7 Instead? The Means Test
If your household income falls below Oregon’s median for your household size, you may qualify for Chapter 7 instead of a multi-year plan. Oregon’s current median income figures:
- 1 person: $79,089
- 2 people: $93,670
- 3 people: $116,729
- 4 people: $140,024
- Each additional person: add $11,100
Filers above the median for their household size generally must commit to a five-year plan; those below can propose three years.
Mortgage Cure in Oregon
Filing Chapter 13 triggers the automatic stay, halting foreclosure immediately. The plan spreads mortgage arrears across its three-to-five-year duration while you resume regular payments going forward. By completion, you’re current as if the default never happened — a meaningful protection in markets where home equity has grown substantially and would otherwise be at risk.
Vehicle Treatment and Cramdown
Oregon exempts $3,000 in equity in one motor vehicle, or $6,000 if you or your spouse is 65 or older or disabled. If your car loan was originated far enough before filing and the vehicle is worth less than the remaining balance, Chapter 13 can cram the loan down to the vehicle’s current market value at a court-approved interest rate.
Which Federal District Do You File In?
District of Oregon - a single statewide district with divisions in Portland and Eugene. Portland handles the majority of filings; Eugene serves southwestern and central Oregon including Springfield, Medford, Bend, and Corvallis.Which division handles your case depends on where you’ve lived for most of the past six months.
How Much Does a Chapter 13 Attorney Cost in Oregon?
Chapter 13 attorney fees in Oregon typically run $3,000 to $4,500, on top of the 313 federal filing fee. Most of the fee is built into the plan itself rather than paid upfront.
Common Mistakes Oregon Filers Make
Not comparing state versus federal exemptions before filing. This choice genuinely changes the liquidation test floor in Oregon, and skipping the comparison can mean a higher plan payment than necessary.
Filing before meeting the two-year residency requirement for the exemption choice. Recent transplants may be limited to their prior state’s exemptions.
Missing required tax filings during the plan. A missed annual filing can trigger a motion to dismiss.
Overlooking a non-filing spouse’s income in the means test, which counts total household income.
A Realistic Example
Consider a filer we’ll call Devon, living in Portland. He works as an electrician and fell behind on his mortgage after a period of reduced hours. He owns a house with about $120,000 in equity and drives a car worth $6,000 with a small loan remaining.
Oregon’s homestead exemption of $158,300 fully covers his equity with room to spare, keeping his liquidation test floor low on the housing side. His attorney confirms Oregon’s own exemptions are the better choice here given his equity level. His vehicle equity, once the exemption applies, adds little to the floor.
His income lands above Oregon’s median for a household of two, so he commits to a five-year plan. The mortgage arrears are spread across the plan while he resumes regular payments. Five years later, the mortgage is current and the remaining unsecured debt is discharged.
Frequently Asked Questions About Chapter 13 Bankruptcy in Oregon
Can Chapter 13 stop foreclosure in Oregon?
Yes. Filing triggers the automatic stay, which halts foreclosure immediately. Your plan then spreads the mortgage arrears across three to five years while you resume regular payments.
Should I use Oregon or federal exemptions in Chapter 13?
It depends on what you own. Homeowners with meaningful equity usually do better under Oregon’s own exemptions, which offer a larger homestead allowance. Renters or filers with little home equity often do better under the federal system’s larger wildcard. You must have lived in Oregon at least two years to choose either system.
How long does a Chapter 13 plan last in Oregon?
Three to five years. Filers with household income above Oregon’s median for their household size generally must propose a five-year plan; those below can propose three years.
Can I keep my car in an Oregon Chapter 13?
Yes — Chapter 13 doesn’t require giving up property. If your car loan is old enough and the vehicle is worth less than the loan balance, the plan may also cram down the loan to the vehicle’s current value.
What is the Oregon bankruptcy means test income limit?
It depends on household size and updates periodically. Current thresholds are roughly $79,089 for one person, $93,670 for two, $116,729 for three, and $140,024 for four, with $11,100 added per additional person.
Which bankruptcy court handles my case if I live in Portland or Eugene?
Oregon has a single statewide bankruptcy court, the District of Oregon, with divisions in Portland and Eugene. Your division depends on where you’ve lived for most of the past six months.
Where to Verify the Details
Oregon’s exemption statutes are published in ORS Chapter 18. For current means test figures, check the U.S. Trustee Program website. Court-specific filing information is available through the District of Oregon bankruptcy court.
Alternatives to Chapter 13 in Oregon
If you pass the means test and don’t need to cure a mortgage, our Chapter 7 guide for Oregon explains how straight liquidation might discharge your debt faster. For a state with a similar exemption-choice structure, see our Chapter 13 guide for Ohio. For a look at debt trends on the West Coast, see our average debt data for California.
Last reviewed by American Debt Guide Editorial Team. Figures on this page reflect Oregon bankruptcy exemption amounts and federal filing data as of July 2026.