Oregon is one of the minority of states that lets a bankruptcy filer choose between the state exemption list and the federal bankruptcy exemptions in 11 U.S.C. § 522(d). Since a 2013 change in Oregon law (ORS 18.300), you are no longer locked into the state set the way debtors in most “opt-out” states are. If you stick with Oregon's exemptions, the headline figure is the homestead: you can protect up to $40,000 of equity in your home, or $50,000 if the home is owned jointly by two or more people, under ORS 18.395 and ORS 18.402. Those two numbers, plus the right to compare them against the federal alternative, are what make Oregon different from a neighboring state.
How exemptions work in an Oregon bankruptcy
An exemption is a legal shield that keeps specific property out of reach of creditors. In a Chapter 7 case, exempt property cannot be sold by the trustee; in a Chapter 13 case, your exemptions help set the minimum you must repay unsecured creditors. Exemptions protect equity—the value left after any loan or lien is subtracted—not the gross value of the item. A car worth $9,000 with a $7,000 loan has only $2,000 of equity, which sits comfortably inside Oregon's vehicle exemption.
Because Oregon permits a choice, you (with your attorney) compare the two complete lists and elect one set or the other—you cannot mix and match. Married couples filing jointly must both use the same system. The right choice usually turns on home equity: Oregon's $40,000 homestead is larger than the base federal homestead, but the federal system has a generous “wildcard” that can be far more useful for renters or people with little home equity.
Oregon's homestead exemption
The Oregon homestead exemption (ORS 18.395) protects up to $40,000 of equity in the home you actually occupy, rising to $50,000 when two or more owners hold the property jointly. It applies to a house, a manufactured (mobile) home, and in many cases a floating home, and it can extend to the proceeds of a sale for a limited time so you can reinvest in a new homestead. Oregon's amounts are fixed by statute and are not adjusted for inflation each year, so unlike the federal figures they do not move on a regular schedule. There are acreage limits—roughly one block in a town or city, and up to 160 acres elsewhere—so very large rural parcels may not be fully covered.
Two federal overlays can cap a state homestead even in Oregon. Under 11 U.S.C. § 522(p), equity in a homestead acquired within roughly 1,215 days (about 40 months) before filing is subject to a federal dollar cap that Congress adjusts periodically, and § 522(o) lets a court reduce the homestead for value moved into the home to defraud creditors. These rules rarely affect long-time Oregon homeowners but matter if you recently bought or refinanced.
Vehicle, personal property, and tools
Oregon's personal-property exemptions live mostly in ORS 18.345. The most commonly used include:
Motor vehicle: up to $3,000 of equity in one vehicle (ORS 18.345(1)(d)).
Household goods and furniture: up to $3,000 for furniture, household items, utensils, radios, and televisions (ORS 18.345(1)(f)).
Clothing, jewelry, and personal items: up to $1,800 (ORS 18.345(1)(a)).
Tools of the trade: up to $5,000 in books, tools, and equipment used in your job or business (ORS 18.345(1)(c)).
Books, pictures, and musical instruments: up to $600 (ORS 18.345(1)(b)).
Firearms: one rifle or shotgun and one handgun, combined value up to $1,000 (ORS 18.362).
Health aids needed by you or a dependent, plus certain domestic animals and their feed, within statutory limits.
Other Oregon protections cover most retirement accounts, the majority of wages, public benefits such as unemployment and workers' compensation, and certain support and insurance payments. Tax-qualified retirement plans like 401(k)s and IRAs are also broadly protected under federal bankruptcy law, so those funds are usually safe regardless of which state list you pick.
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Oregon's wildcard exemption
Oregon offers a modest wildcard exemption of $400 that can be applied to any personal property of your choice (ORS 18.345(1)(o)). The catch is important: this $400 cannot be used to increase the amount of another exemption—for example, you cannot stack it on top of the vehicle exemption to protect extra car equity. The federal system, by contrast, allows an unused portion of its homestead to be converted into a much larger wildcard, which is one reason filers with little home equity often choose the federal list. Running the math on both wildcards is frequently the deciding factor.
State set vs. federal set: how to compare
The federal exemptions in 11 U.S.C. § 522(d) are adjusted for inflation every three years (most recently on April 1, 2025), so any specific federal homestead or wildcard figure you read can be out of date. Rather than rely on a number that may have changed, confirm the current federal amounts directly from the statute or the U.S. Courts before electing that system. As a rule of thumb: Oregon's homestead is larger than the federal base homestead, so homeowners with meaningful equity often keep the state set; renters and those with little home equity often do better under the federal wildcard. Because this is an all-or-nothing election, it is worth modeling both before you file.
The domicile timing rule
You do not automatically get Oregon's exemptions just by filing in Oregon. Under 11 U.S.C. § 522(b)(3), the exemptions you may use depend on where you were domiciled for the 730 days (two years) before filing. If you moved to Oregon within that window, you generally must use the exemptions of the state where you lived during the earlier 180-day period—and if that former state limited its exemptions to its own residents, you may fall back on the federal set. Recent movers should confirm which state's law actually governs their case.
How to claim and protect your exemptions
Exemptions are claimed on Schedule C of your bankruptcy petition. You must list each item, the statute you rely on, and the value claimed exempt. The trustee or a creditor has a limited window after the meeting of creditors to object; if no one objects in time, the property is exempt even if the claim was arguably too generous. Accurate valuation and citing the correct ORS subsection matter, because a sloppy or missing exemption can cost you property a correct filing would have protected. Most consumer bankruptcy attorneys handle this routinely, and Oregon's federal courts publish self-help materials for people filing without a lawyer.
Where to verify Oregon's rules
Confirm the current statutory text in the Oregon Revised Statutes, chapter 18 (ORS 18.300 through 18.422), through the Oregon State Legislature's official website. For consumer questions, complaints about debt collectors, and referrals, contact the Oregon Department of Justice, Office of the Attorney General, through its Consumer Protection program and consumer hotline. For case-specific guidance, consult the U.S. Bankruptcy Court for the District of Oregon or a licensed Oregon bankruptcy attorney. Federal consumer protections such as the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), and the federal 25% cap on wage garnishment under the Consumer Credit Protection Act apply in Oregon alongside these state exemptions, and Oregon law often gives debtors additional protection on top of those federal floors.
This article is general information, not legal advice. Exemption amounts and timing rules can change, and the right strategy depends on your specific assets and history. Verify the figures with the official sources above before you rely on them.
Official Oregon Sources
This page is based on Oregon law. Limits and deadlines change — verify the current details directly with the official Oregon sources below. This is general legal information, not legal advice.
Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Oregon’s own rules.
Frequently asked questions
Can I use the federal bankruptcy exemptions in Oregon?
Yes. Since a 2013 change to ORS 18.300, Oregon lets filers choose either the Oregon state exemptions or the federal exemptions in 11 U.S.C. § 522(d). You must pick one complete set—you cannot combine them—and married couples filing jointly must use the same system.
How much home equity can I protect in an Oregon bankruptcy?
Oregon's homestead exemption protects up to $40,000 of equity for a single owner and up to $50,000 when the home is owned jointly by two or more people (ORS 18.395 and 18.402). It covers houses, manufactured homes, and many floating homes, subject to acreage limits.
What is Oregon's car exemption in bankruptcy?
Oregon protects up to $3,000 of equity in one motor vehicle under ORS 18.345(1)(d). Because exemptions cover equity, a car with a loan balance near or above its value usually has little or no exposed equity to protect.
Does Oregon have a wildcard exemption?
Yes, but it is small: $400 in any personal property under ORS 18.345(1)(o). Crucially, it cannot be used to increase another exemption. Filers needing a bigger wildcard often elect the federal exemption system instead, which can convert unused homestead value into a larger wildcard.
I just moved to Oregon. Which state's exemptions apply?
Under 11 U.S.C. § 522(b)(3), the exemptions you may use depend on where you were domiciled during the 730 days before filing. If you moved to Oregon within that window, you may have to use your prior state's exemptions—or the federal set—rather than Oregon's. Confirm this before filing.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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