Oregon protects home equity up to $158,300 for a single filer, or $316,700 for two household members filing together — and that number goes up every July 1 with inflation, which makes Oregon one of the more homeowner-friendly states in Chapter 7. Combine that with the option to choose federal exemptions instead (after two years of residency), and Oregon gives filers more flexibility than most neighboring states.
How Chapter 7 Works in Oregon
The process is the same federal framework used everywhere: file a petition, a trustee reviews your assets against the exemptions you’re entitled to claim, and anything not covered is theoretically available to pay creditors. In practice, the large majority of Oregon Chapter 7 cases are “no-asset” cases — the exemptions cover everything the filer owns, and the case closes with a discharge about three to four months after filing.
What makes Oregon distinctive is the combination of a generous, inflation-adjusted homestead exemption and a genuine choice between state and federal exemption systems — a flexibility most states don’t offer.
How Much Home Equity Can You Protect in Oregon?
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.
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.Because this figure is tied to the Consumer Price Index and adjusts every July 1, it’s one of the few exemption amounts in the country that reliably increases each year rather than sitting fixed until the legislature acts — worth double-checking the current figure if you’re filing near the July 1 adjustment date.
Should You Use Oregon or Federal Exemptions?
If you’ve lived in Oregon for at least two years, you have a genuine choice between Oregon’s state exemption list and the federal bankruptcy exemptions under 11 U.S.C. § 522(d) — you can’t mix the two, it’s one system or the other. Homeowners with substantial equity generally do better under Oregon’s own homestead exemption, since it’s larger than the federal homestead allowance. Renters or filers with little home equity sometimes come out ahead under the federal system, since its wildcard exemption can be stacked with any unused federal homestead allowance to protect a meaningful amount of cash, bank balances, or other property.
Filers who haven’t reached the two-year residency mark are typically required to use the exemptions of the state they lived in immediately before moving to Oregon — a detail that surprises a lot of recent transplants.
What Happens to Your Car in Oregon Chapter 7?
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 a vehicle’s equity exceeds the exemption amount, Oregon’s wildcard exemption can sometimes cover the difference, though at $400 it doesn’t stretch far — filers with a newer, mostly-paid-off vehicle should run the numbers with an attorney before assuming it’s fully protected.
What Is Oregon’s Wildcard Exemption?
Oregon’s wildcard is $400, applicable to any property you choose. It’s modest compared to what’s available under the federal system if you qualify to use it instead, which is one of the main reasons renters and filers without home equity often lean toward the federal exemption choice in Oregon.
Do You Qualify for Chapter 7 in Oregon? The Means Test
Your average household income over the six months before filing is compared against Oregon’s median income for a household your size. Fall below the median and you qualify for Chapter 7 automatically. Above it, the court runs a further expense calculation to determine whether you have enough disposable income to fund a Chapter 13 repayment plan instead.
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
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 Bankruptcy Attorney Cost in Oregon?
Chapter 7 attorney fees in Oregon typically run $1,100 to $3,000 for a straightforward case, on top of the 338 federal filing fee. Chapter 13 costs more given the added complexity of a repayment plan: typically $3,000 to $4,500, often built into the plan itself rather than paid upfront.
Add the mandatory credit counseling course (before filing) and financial management course (before discharge), typically $10 to $100 combined.
Common Mistakes Oregon Filers Make
Defaulting to state exemptions without checking the federal option. Renters and filers with little home equity sometimes protect more property under the federal exemption system, but only if they’ve met the two-year residency requirement to choose it.
Not accounting for the annual homestead adjustment. Because Oregon’s homestead exemption changes every July 1, filers who look up an old figure online can underestimate how much equity is actually protected.
Overlooking a non-filing spouse’s income. The means test counts total household income, not just the filing spouse’s, which catches some couples off guard.
Assuming the wildcard covers excess vehicle equity. At $400, Oregon’s state wildcard is small — it won’t cover much of a gap if a vehicle’s equity exceeds the $3,000 exemption.
A Realistic Example
Consider a filer we’ll call Priya, living in Eugene. She works as a physical therapist and has lived in Oregon for eleven years. She owns a condo with about $90,000 in equity and drives a paid-off car worth $8,000.
Oregon’s homestead exemption of $158,300 fully covers her condo equity with plenty of room to spare — nowhere close to the cap. Her vehicle, however, is worth more than the $3,000 vehicle exemption covers; her attorney discusses whether the $400 wildcard, combined with the excess allowance, is enough to protect it, or whether switching to federal exemptions would leave more of the vehicle’s value protected given she has no mortgage-level equity concerns to worry about losing under the federal homestead cap.
Her income falls below Oregon’s median for a household of one, so she qualifies for Chapter 7 automatically. She files, attends the 341 meeting, and receives her discharge about ninety days later — condo and (after some exemption planning) her vehicle both intact.
Frequently Asked Questions About Chapter 7 Bankruptcy in Oregon
Can I keep my house if I file Chapter 7 in Oregon?
In almost all cases, yes. Oregon’s homestead exemption protects $158,300 in equity for a single filer or $316,700 for two household members filing together, and the amount increases every July 1 with inflation. Equity above that threshold isn’t automatically protected.
Can I choose federal bankruptcy exemptions instead of Oregon’s?
Yes, but only if you’ve lived in Oregon for at least two years before filing. Shorter residents generally must use the exemptions of the state they lived in immediately before Oregon. You can’t combine state and federal exemptions — it’s one system or the other.
How much car equity can I protect in Oregon bankruptcy?
$3,000 in one vehicle, or $6,000 if you or your spouse is 65 or older or disabled. Equity above that amount may need to be covered by Oregon’s $400 wildcard exemption or isn’t protected.
Does Oregon’s homestead exemption really change every year?
Yes. Unlike most states, where the homestead amount is fixed until the legislature updates it, Oregon’s exemption is tied to the Consumer Price Index and adjusts automatically every July 1.
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. Falling below your household’s threshold qualifies you for Chapter 7 automatically.
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. Portland handles the majority of filings; Eugene serves southwestern and central Oregon. 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, with the homestead exemption’s annual CPI adjustment published by the Oregon Judicial Department. 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 7 in Oregon
If your income is too high to pass the means test, or you need to catch up on mortgage or car payments, our Chapter 7 vs. Chapter 13 comparison guide explains how a repayment plan works as an alternative to liquidation. If you’re comparing Oregon’s exemptions against a state with an unlimited homestead exemption, see our Chapter 7 guide for Texas. For a look at debt levels along 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.