Filing Chapter 7 Bankruptcy in Oregon (2026)
Reviewed by DocDraft Legal Team · Oregon · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set largely by Oregon. Oregon is a choice state: since 2013 an Oregon debtor may elect either the federal 11 U.S.C. 522(d) exemptions or the Oregon exemption set, but not a mix of both. This page explains Oregon's homestead exemption under ORS 18.395, which was raised to $150,000 for a single filer and $300,000 for a household, along with the motor vehicle, wildcard, wage, and retirement figures. It covers the means-test median income and the U.S. Bankruptcy Court for the District of Oregon, where all Oregonians file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or spousal support.
Does Oregon use state or federal bankruptcy exemptions?
Oregon is a choice state. Since 2013 an Oregon debtor may elect either the federal 11 U.S.C. 522(d) exemption set or the Oregon exemptions under ORS chapter 18, whichever protects more property. You must choose one full set and cannot combine federal and Oregon exemptions. Many Oregon homeowners choose the state set for its larger homestead.
Can I keep my house if I file Chapter 7 in Oregon?
Often yes. Under ORS 18.395, Oregon's homestead exemption protects up to $150,000 in equity for a single filer and up to $300,000 for two or more household members who jointly own the home. If your home equity fits within that amount, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Oregon?
Usually yes if your equity is modest. Under ORS 18.345, Oregon exempts up to $10,000 of equity in one motor vehicle per debtor, so a married couple filing jointly can protect two vehicles. If your car equity is at or below that figure, the vehicle is protected. Equity above it may be reachable.
What is the income limit to file Chapter 7 in Oregon?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Oregon are $79,089 for one earner, $93,670 for two, $116,729 for three, and $140,024 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Oregon's Federal-or-State Choice and the Raised ORS 18.395 Homestead
Oregon is a bankruptcy choice state, not an opt-out state. Since 2013 an Oregon debtor may elect either the federal 11 U.S.C. 522(d) exemptions or the Oregon exemption set under ORS chapter 18, but must take one set in full rather than mixing the two. Oregon's headline protection is its homestead under ORS 18.395, which was raised substantially and now shields up to $150,000 in equity for a single filer and up to $300,000 for two or more household members who jointly own the home, far above the federal homestead. Oregon also exempts up to $10,000 of equity in a motor vehicle under ORS 18.345, with a $400 wildcard for any personal property under ORS 18.345(1). Because these figures now exceed the federal set for most homeowners, many Oregon filers choose the state exemptions, while renters and low-equity filers sometimes prefer the federal 522(d) list for its portable wildcard. All Oregonians file in the single U.S. Bankruptcy Court for the District of Oregon, which sits in Portland and Eugene.
Relevant Laws
Oregon Homestead Exemption (ORS 18.395)
Sets Oregon's homestead exemption, raised to protect up to $150,000 in equity for a single filer and up to $300,000 for two or more household members who jointly own the home, adjusted for inflation. This is the exemption that lets many Oregon homeowners keep their house in Chapter 7.
Oregon Choice of Federal or State Exemptions
Oregon is a choice state rather than an opt-out state. Since 2013 an Oregon debtor may elect either the federal 11 U.S.C. 522(d) exemption set or the Oregon exemptions under ORS chapter 18, but must use one full set and cannot combine the two.
Oregon Personal Property and Wildcard Exemptions (ORS 18.345)
Lists Oregon's personal property exemptions, including up to $10,000 of equity in a motor vehicle, household goods, tools of the trade, and a $400 wildcard for any personal property under ORS 18.345(1). A married couple filing jointly can generally double these amounts.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b) lets a debtor use the federal 522(d) exemptions in a choice state like Oregon, and section 707(b) sets the means test measured against state median income.
Regional Variances
Oregon Chapter 7 Exemption Table
Homestead
ORS 18.395: up to $150,000 in equity for a single filer and up to $300,000 when two or more household members jointly own the home, adjusted for inflation. This was raised from the former $40,000 and $50,000 caps. Federal 522(d)(1) offers a smaller homestead, so many Oregon homeowners choose the state set.
Motor vehicle
ORS 18.345(1)(d): up to $10,000 of equity in one motor vehicle per debtor. A married couple filing jointly can protect two vehicles. For certain support and restitution debts the protection is more limited. Equity above the figure may be reachable by the trustee.
Wildcard
ORS 18.345(1): a $400 wildcard that may be applied to any personal property of the debtor's choosing. It is modest compared with the federal 522(d)(5) wildcard, which is one reason some low-equity Oregon filers elect the federal exemption set instead.
Personal property
ORS 18.345: household goods, furniture, and utensils held for personal, family, or household use, plus tools of the trade, are exempt up to the statutory limits. Additional categories under ORS chapter 18 cover items such as clothing, health aids, and certain public benefits.
Wages
ORS 18.385: 75 percent of a debtor's disposable earnings are exempt from garnishment, with a minimum dollar amount that adjusts periodically ($400 per week for wages payable on or after July 1, 2026). This wage protection carries into the value of earnings held at the time of filing.
Retirement
ORS 18.358: most tax-qualified retirement plans, including 401(k), 403(b), and IRA accounts, and public pension benefits, are exempt from execution. ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law, so retirement savings generally stay protected.
Suggested Compliance Checklist
Confirm the current Oregon means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Oregon median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $79,089 for one, $93,670 for two, $116,729 for three, and $140,024 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Oregon and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Choose the federal or Oregon exemption set and value your assets
Before preparing your schedules days after startingDecide between the federal 11 U.S.C. 522(d) exemptions and the Oregon set under ORS chapter 18, including the ORS 18.395 homestead. Value your home, vehicle, and personal property so you can match assets to whichever set protects more. You must choose one set in full.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Oregon, which has divisions in Portland and Eugene. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Oregon means-test median income | Check your household size against the U.S. Trustee Oregon median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $79,089 for one, $93,670 for two, $116,729 for three, and $140,024 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Oregon and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Choose the federal or Oregon exemption set and value your assets | Decide between the federal 11 U.S.C. 522(d) exemptions and the Oregon set under ORS chapter 18, including the ORS 18.395 homestead. Value your home, vehicle, and personal property so you can match assets to whichever set protects more. You must choose one set in full. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Oregon, which has divisions in Portland and Eugene. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under ORS 18.395, Oregon's homestead exemption protects up to $150,000 in equity for a single filer and up to $300,000 when two or more members of a household jointly own the home. These amounts were raised from the former $40,000 and $50,000 caps and are adjusted for inflation. If your home equity fits within the figure, Chapter 7 generally lets you keep the house.
Under ORS 18.345, Oregon exempts up to $10,000 of equity in one motor vehicle per debtor, so a married couple filing jointly can protect two vehicles. For certain support and restitution debts the protection is more limited. If your car equity is at or below the applicable figure, the vehicle is protected in Chapter 7.
Yes. Oregon is a choice state, so since 2013 you may elect either the federal 11 U.S.C. 522(d) exemptions or the Oregon set under ORS chapter 18. You must take one full set and cannot mix them. Homeowners with equity usually prefer Oregon for the larger ORS 18.395 homestead, while some renters prefer the federal list.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Generally yes. Under ORS 18.358, Oregon exempts most tax-qualified retirement plans, including 401(k), 403(b), and IRA accounts, along with public pension benefits, from creditors. ERISA-qualified plans are also separately excluded from the bankruptcy estate under federal law, so your retirement savings usually stay protected in Chapter 7.
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