Protecting Assets in Oregon Through Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy can be a powerful step toward financial relief, but many people hesitate because they fear losing everything they own. The truth is, Oregon’s bankruptcy laws include exemptions that allow you to protect important personal assets while still eliminating qualifying debts.
If you're considering filing in Oregon, it’s essential to understand how Chapter 7 bankruptcy exemptions work and how they can help safeguard your home, vehicle, and everyday belongings.
How Chapter 7 Bankruptcy Affects Your Assets
Chapter 7 bankruptcy is also known as liquidation bankruptcy. In theory, any non-exempt property could be sold by a trustee to repay creditors. In practice, however, most Oregon filers are able to keep all of their property—thanks to the state’s exemption laws.
In Oregon, you are required to use state exemptions, which are designed to protect the assets most people rely on to live and work.
Key Oregon Chapter 7 Exemptions
These are some of the most common asset protections available under Oregon law:
1. Homestead Exemption
You can protect up to $40,000 of equity in your home, or $50,000 if filing jointly. This exemption applies to your primary residence.
2. Vehicle Exemption
Up to $3,000 in equity in one vehicle can be protected. If you’re married and own two cars, you may be able to apply the exemption to each.
3. Household Property
You may exempt up to $3,000 in furniture, clothing, appliances, and other essentials. Jewelry is protected up to $1,800, and tools of the trade up to $5,000.
4. Wages and Retirement
You can protect 75% of earned but unpaid wages, and most retirement accounts such as 401(k)s and IRAs are fully protected under federal nonbankruptcy laws.
What You Can Keep Depends on Your Situation
Each bankruptcy case is unique, but many Oregon residents qualify for “no-asset” Chapter 7 cases, meaning everything they own is protected by exemptions. This often includes:
- A modest home or condo
- A reliable car
- Essential household items
- Retirement savings
- Basic tools or equipment for work
The goal of bankruptcy isn’t to leave you with nothing. It’s to give you a clean slate without destroying your ability to move forward.
When Asset Protection Gets Complicated
If you own high-value property or multiple vehicles, the exemptions may not cover everything. In that case, you’ll want to work with our bankruptcy attorney to develop a strategy. In some situations, Chapter 13 bankruptcy may be a better fit, allowing you to keep more property through a repayment plan.
Talk to a Local Attorney Before Filing
Bankruptcy law is complex, and applying the right exemptions can make all the difference. If you’re worried about protecting your assets during a Chapter 7 bankruptcy in Oregon, consult with our qualified attorney who understands both state and federal laws.
Oregon Fresh Start is here to guide you through the process. We help individuals and families understand their options, file with confidence, and move forward with a clear plan for financial recovery.
Ready to take the next step? Contact Oregon Fresh Start today at (541) 262-0040 to schedule your consultation and learn how we can help you protect what matters most.