Bankruptcy Exemptions in Oregon
What property you can keep in bankruptcy in Oregon: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Oregon has not opted out. A person living in Oregon who files for bankruptcy may use either the federal exemptions in 11 U.S.C. 522(d) or the Oregon state exemptions, but not both. Or. Rev. Stat. § 18.300
| State or federal exemptions | Oregon has not opted out. A person living in Oregon who files for bankruptcy may use either the federal exemptions in 11 U.S.C. 522(d) or the Oregon state exemptions, but not both. Using any exemption from one list rules out the other list. Source: Or. Rev. Stat. § 18.300 |
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| Homestead exemption | The statute sets the homestead exemption at $150,000 for one debtor, or $300,000 combined for two or more household members who are debtors, and requires the State Court Administrator to adjust these amounts for inflation every July 1. The Oregon Judicial Department's published table lists $158,300 for one judgment debtor and $316,700 for two or more in the same household for the period from July 1, 2026 to before July 1, 2027. The home must be the actual residence of the owner or the owner's spouse, parent or child. Area limit: up to 160 acres outside a town or city laid off into blocks and lots, or up to one block inside such a town or city. For child support, spousal support or restitution debts the exemption is $40,000 ($50,000 combined) and is not indexed. The exemption does not apply to purchase-money liens, mortgages, or construction liens for work on the home. Adjusted amounts read from https://www.courts.oregon.gov/Documents/Homestead-Garnishment-Exemption-Adjustments-Table.pdf (the table is labeled by garnishment dates). The table does not say how the adjustment interacts with a bankruptcy filing date. |
| Car exemption | One vehicle (automobile, truck, trailer or other motor vehicle) up to $10,000 in value. If the debt is for child support, spousal support or a judgment that includes restitution, the limit is $3,000. Household members who are joint debtors may each claim the vehicle exemption, and may combine it for jointly owned property. |
| Wildcard exemption | The debtor's interest in any personal property, up to $400 in value. This exemption cannot be used to increase the amount of any other exemption. Source: Or. Rev. Stat. § 18.345(1)(p) |
| Retirement accounts | A retirement plan is treated as a valid spendthrift trust and the beneficiary's interest is exempt automatically, without having to claim it. Covered plans include pension and profit-sharing plans under Internal Revenue Code sections 401(a), 401(c), 401(k), 403 and 457, traditional and Roth IRAs (including SEP IRAs), and government or private employment pensions. Contributions that are not 'permitted contributions' can be challenged as voidable transactions, and for support debts only 75% of the interest (or 50% of a lump-sum withdrawal) is exempt. Exempt retirement funds stay exempt when deposited in a bank account if reasonably identifiable, up to an accumulation of $7,500. |
| Wages | 75% of disposable earnings is exempt. In addition, the debtor must be left with at least a minimum amount: for wages payable from July 1, 2026 to before July 1, 2027, $400 for a week or less, $832 for two weeks, $912 for a half-month, and $1,792 for a month. From July 1, 2027 the weekly minimum becomes 30 times the Oregon minimum wage (60, 65 and 130 times for the other pay periods), recalculated each year by the State Court Administrator. Lower minimums apply to child support, spousal support and restitution debts. Exempt wages stay exempt when deposited in a bank account if reasonably identifiable, up to an accumulation of $7,500. ORS 18.385(7)(a) states that these wage-garnishment limits do not apply to any order of a court of bankruptcy. |
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FAQ
Can you use the federal bankruptcy exemptions in Oregon?
Oregon has not opted out. A person living in Oregon who files for bankruptcy may use either the federal exemptions in 11 U.S.C. 522(d) or the Oregon state exemptions, but not both. Using any exemption from one list rules out the other list.
How much home equity is protected in bankruptcy in Oregon?
The statute sets the homestead exemption at $150,000 for one debtor, or $300,000 combined for two or more household members who are debtors, and requires the State Court Administrator to adjust these amounts for inflation every July 1. The Oregon Judicial Department's published table lists $158,300 for one judgment debtor and $316,700 for two or more in the same household for the period from July 1, 2026 to before July 1, 2027. The home must be the actual residence of the owner or the owner's spouse, parent or child. Area limit: up to 160 acres outside a town or city laid off into blocks and lots, or up to one block inside such a town or city. For child support, spousal support or restitution debts the exemption is $40,000 ($50,000 combined) and is not indexed. The exemption does not apply to purchase-money liens, mortgages, or construction liens for work on the home.
Can I keep my car in bankruptcy in Oregon?
One vehicle (automobile, truck, trailer or other motor vehicle) up to $10,000 in value. If the debt is for child support, spousal support or a judgment that includes restitution, the limit is $3,000. Household members who are joint debtors may each claim the vehicle exemption, and may combine it for jointly owned property.
Does Oregon have a wildcard exemption?
The debtor's interest in any personal property, up to $400 in value. This exemption cannot be used to increase the amount of any other exemption.
Are retirement accounts protected in bankruptcy in Oregon?
A retirement plan is treated as a valid spendthrift trust and the beneficiary's interest is exempt automatically, without having to claim it. Covered plans include pension and profit-sharing plans under Internal Revenue Code sections 401(a), 401(c), 401(k), 403 and 457, traditional and Roth IRAs (including SEP IRAs), and government or private employment pensions. Contributions that are not 'permitted contributions' can be challenged as voidable transactions, and for support debts only 75% of the interest (or 50% of a lump-sum withdrawal) is exempt. Exempt retirement funds stay exempt when deposited in a bank account if reasonably identifiable, up to an accumulation of $7,500.
Are wages protected in bankruptcy in Oregon?
75% of disposable earnings is exempt. In addition, the debtor must be left with at least a minimum amount: for wages payable from July 1, 2026 to before July 1, 2027, $400 for a week or less, $832 for two weeks, $912 for a half-month, and $1,792 for a month. From July 1, 2027 the weekly minimum becomes 30 times the Oregon minimum wage (60, 65 and 130 times for the other pay periods), recalculated each year by the State Court Administrator. Lower minimums apply to child support, spousal support and restitution debts. Exempt wages stay exempt when deposited in a bank account if reasonably identifiable, up to an accumulation of $7,500.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.