The Oregon Homestead Exemption

Most people want to know whether they can keep valuable property before filing for bankruptcy—especially a home. If you qualify to use the Oregon homestead exemption, you can protect some or all of the equity in your house. In this article, we explain:

• how much the Oregon homestead exemption will cover, and
• how to apply it in your bankruptcy case.

For more bankruptcy information, read How to File Bankruptcy in Oregon.

Homestead Exemptions Available in an Oregon Bankruptcy

Oregon lets filers use either the federal exemption system or Oregon's state exemption system, so you'll be able to choose between two homestead amounts. However, you can't mix exemptions from both lists. Select the system that will protect your most important assets or the most property overall.

We've listed both exemption amounts below to help you make an informed choice. We've also included links to more complete federal and state exemption lists so you'll have an easier time deciding which set will work best for you.

If you're married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.

Property Protected by Oregon's Homestead Exemption

Under the Oregon exemption system, a property owner can use the exemption on real property or a floating, manufactured, or mobile home. You can also use the homestead exemption to protect proceeds from the sale of the homestead for up to one year. But conditions exist. You must hold the money with the intent to do one of the following:

• purchase another homestead
• pay rent for up to one year, or
• use it for prepaid rent or security deposits for military personnel during wartime.

The owner, spouse, parent, or child must occupy the homestead. (check with a local bankruptcy attorney).

If you hold property as tenancy by entirety with your spouse or if you move away: One spouse filing for bankruptcy (not both) might prevent the bankruptcy trustee from using the property equity to pay off debts. Also, You might be able to use the homestead exemption if you leave temporarily with the intent to move back in. However, these are tricky areas of law. Talk with a local bankruptcy attorney before filing to ensure that you don't lose valuable property.

Timing Your Oregon Bankruptcy

You can file for bankruptcy in Oregon after living there for more than 180 days. However, you must live in Oregon much longer before using Oregon exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.

But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.

Claiming the Oregon Bankruptcy Homestead Exemption

In Oregon, the homestead exemption is automatic—you don't have to file a homestead declaration with the recorder's office to claim the homestead exemption in bankruptcy. Instead, when filing for bankruptcy, you'll list your homestead exemption on Schedule C: The Property You Claim as Exempt when completing your bankruptcy forms. You can find out about other requirements you'll need to meet in Your Home in Chapter 7 or Your Home in Chapter 13.

Finding the Oregon Bankruptcy Homestead Exemption Statute

You'll find Oregon's homestead exemption on the statutes page of the Oregon State Legislature website. Learn about finding state statutes in Laws and Legal Research.

Need More Bankruptcy Help?

Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!

We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated April 6, 2022