Oregon Bankruptcy Guide

Complete guide to filing bankruptcy in Oregon, including current median income requirements, Oregon's homestead exemption up to $40,000, bankruptcy court information, and how to find qualified bankruptcy attorneys throughout Oregon.

Oregon Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in Oregon, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$65,461	$5,455
2 people	$82,034	$6,836
3 people	$93,283	$7,774
4 people	$106,964	$8,914
5 people	$115,964	$9,664
6 people	$124,964	$10,414

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your Oregon Eligibility

Oregon Bankruptcy Exemptions

Oregon does not allow bankruptcy filers to choose federal exemptions. All Oregon bankruptcy filers must use Oregon state exemptions. Oregon has generous exemptions that provide good protection for most assets.

Oregon Homestead Exemption

Up to $40,000 ($50,000 if debtor or spouse is elderly or disabled).

Oregon's homestead exemption protects up to $40,000 of equity in your primary residence. If the debtor or debtor's spouse is age 65 or older, or is disabled, the exemption increases to $50,000. This provides enhanced protection for elderly and disabled homeowners.

The exemption applies to real property including houses, condominiums, mobile homes, houseboats, and co-ops that serve as your principal residence. The property must be your principal residence at the time of filing bankruptcy.

Oregon's homestead exemption is per household, meaning married couples filing jointly still receive $40,000 (or $50,000) total protection, not double.

Oregon Vehicle Exemption

Up to $3,000 (or $6,000 if debtor or spouse is elderly or disabled).

Oregon allows you to protect up to $3,000 of equity in one motor vehicle. If the debtor or debtor's spouse is age 65 or older, or is disabled, the vehicle exemption increases to $6,000.

If you owe more than your vehicle is worth or have equity within these limits, you can typically keep it by continuing to make loan payments through a reaffirmation agreement in Chapter 7.

Oregon State Exemptions

Oregon bankruptcy exemptions include:

• Homestead: $40,000 ($50,000 if age 65+ or disabled)
• Vehicle: $3,000 ($6,000 if age 65+ or disabled)
• Household Goods and Furnishings: $3,000
• Clothing and Jewelry: $1,800
• Appliances: Included in household goods
• Books and Musical Instruments: $600
• Domestic Animals: $1,000
• Burial Plot: $7,500
• Tools of Trade: $5,000
• Bank Deposits: $7,500 (up to $10,000 if debtor or spouse is elderly or disabled)
• Firearms: $1,000
• Wildcard: $400 of any personal property
• Wages: 75% of earned but unpaid wages (or 40 times federal minimum wage per week, whichever is greater)

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits under federal law
• Public Benefits: Social Security, unemployment, workers' compensation, veteran's benefits, disability benefits, public assistance, SNAP benefits
• Life Insurance: Unmatured life insurance policies; life insurance proceeds if beneficiary is not the estate
• Health Aids: All health aids
• Education Savings: Oregon 529 education savings plan (Oregon College Savings Plan)
• Personal Injury Awards: Personal injury recoveries to extent reasonably necessary for support
• Wrongful Death Awards: Wrongful death recoveries needed for support
• Lost Earnings: Compensation for lost earnings needed for support

Filing Bankruptcy in Oregon

Chapter 7 Bankruptcy in Oregon

Chapter 7 bankruptcy is commonly filed throughout Oregon. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in Oregon, you must pass the means test by having income below the Oregon median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Oregon's generous exemptions—$40,000/$50,000 homestead, $3,000/$6,000 vehicle, $7,500 bank deposits, and $5,000 tools of trade—provide good protection for most Oregon residents' assets while obtaining debt relief through Chapter 7.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Oregon

Chapter 13 bankruptcy allows Oregon residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in Oregon if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect (particularly if you have more than $40,000/$50,000 in home equity), or if you have priority debts like recent taxes or past-due child support. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Court in Oregon

Oregon has one federal bankruptcy court district:

District of Oregon

Main Courthouses: Portland, Eugene

The U.S. Bankruptcy Court for the District of Oregon covers the entire state. The court has multiple divisions to serve Oregon's population:

Portland Division: Serves northwestern Oregon including Portland, Salem, Beaverton, Hillsboro, Gresham, and the Willamette Valley north of Eugene. This is the busiest division, handling the majority of Oregon bankruptcy cases due to the Portland metropolitan area's population concentration.

Eugene Division: Serves southwestern Oregon including Eugene, Springfield, Medford, Bend, Corvallis, and southern/central Oregon. This division covers a large geographic area with smaller population centers.

You must file in the district where you have lived for the greater part of the 180 days before filing. Since Oregon has only one district, all Oregon residents file in the District of Oregon, but your case will be assigned to the appropriate division based on your county of residence.

Oregon Residency Requirements

To use Oregon bankruptcy exemptions, you must have been domiciled (legally residing) in Oregon for at least 730 days (2 years) before filing. If you've lived in Oregon for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Oregon does not allow the choice of federal exemptions, so once you meet the residency requirement, you must use Oregon state exemptions.

Find an Oregon Bankruptcy Attorney

Most Oregon bankruptcy attorneys offer free initial consultations. Given the complexity of bankruptcy law and Oregon's specific exemption rules, consulting with an experienced Oregon bankruptcy attorney is highly recommended.

What an Oregon Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Maximize Oregon exemptions to protect your assets
• Help you qualify for enhanced exemptions if you or your spouse is elderly or disabled
• Calculate whether you qualify for Chapter 7 using the Oregon means test
• Navigate Oregon-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in Oregon

Chapter 7 bankruptcy attorney fees in Oregon vary by location:

• Portland metro area: $1,300 to $1,900 plus $338 filing fee
• Salem, Eugene, Beaverton: $1,100 to $1,600 plus $338 filing fee
• Bend, Medford, Corvallis: $1,000 to $1,500 plus $338 filing fee
• Other Oregon cities and rural areas: $900 to $1,400 plus $338 filing fee

Chapter 13 attorney fees typically range from $3,000 to $4,500 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Portland-area attorney fees tend to be higher due to the region's cost of living. Many Oregon attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

Oregon-Specific Bankruptcy FAQs

Can I keep my house in Oregon bankruptcy?

Most Oregon homeowners can keep their homes. Oregon's $40,000 homestead exemption (or $50,000 if you or your spouse is age 65+ or disabled) protects homes with equity up to these amounts. If you have equity within these limits, your home is fully protected in Chapter 7 bankruptcy. If your equity exceeds these amounts, you may need to file Chapter 13 to keep your home.

Can I keep my car in Oregon bankruptcy?

Yes, in most cases. Oregon allows you to exempt up to $3,000 of equity in one motor vehicle (or $6,000 if you or your spouse is age 65+ or disabled). Most Oregon residents with car loans have equity below these amounts and can keep their vehicles by continuing to make payments through a reaffirmation agreement.

Does Oregon allow federal bankruptcy exemptions?

No, Oregon is one of the states that opted out of the federal exemption system. All Oregon filers must use Oregon state exemptions. However, Oregon's state exemptions are generally favorable, with a $40,000/$50,000 homestead that exceeds the federal $27,900 (single), and enhanced exemptions for elderly and disabled filers.

What if I'm elderly or disabled in Oregon?

Oregon provides enhanced exemptions if you or your spouse is age 65 or older, or is disabled. The homestead exemption increases from $40,000 to $50,000. The vehicle exemption increases from $3,000 to $6,000. Bank deposit protection increases from $7,500 to $10,000. You must provide documentation of age (birth certificate, driver's license) or disability status when claiming these enhanced exemptions.

Can I protect my houseboat in Oregon bankruptcy?

Yes, Oregon specifically includes houseboats in the definition of homestead. If your houseboat serves as your principal residence, you can claim the $40,000 (or $50,000) homestead exemption just like a traditional house. Oregon has houseboat communities on the Willamette River, Columbia River, and other waterways. The houseboat must be your primary residence to qualify for homestead protection.

How does Oregon's no sales tax affect bankruptcy?

Oregon has no state sales tax, which doesn't directly affect bankruptcy but may mean Oregon residents have slightly different spending patterns compared to other states. This can affect means test calculations and Chapter 13 payment amounts. Your Oregon bankruptcy attorney will properly calculate your income and expenses for Oregon's specific economic environment.

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