Bankruptcy in Oregon
Drowning in debt and unsure where to turn?
If you’re an Oregon resident struggling with mounting bills, relentless collection calls, or the threat of foreclosure, you’re not alone. Life can change fast, and when it does, debt can become overwhelming.
Filing for bankruptcy in Oregon can stop creditor harassment, halt wage garnishments, and give you a real opportunity to wipe the slate clean or reorganize your finances. But without experienced legal help, you could miss out on key protections or risk unnecessary losses.
We’re ready to help you get started. Our service connects Oregon residents with experienced bankruptcy attorneys who can guide you through every step of the process.
Types of Bankruptcy in , Oregon
Bankruptcy is a legal tool designed to help individuals and businesses facing overwhelming debt get a fresh financial start. When you file, you can wipe out some or all of your eligible debts, giving you a chance to rebuild without the constant pressure of creditors.
If you’re falling behind and can’t find a way out, bankruptcy might be an option worth considering. Depending on your financial situation, you could qualify for Chapter 7, Chapter 11, or Chapter 13. Each chapter works differently and is designed for different goals, so choosing the right one is critical.
In Oregon, bankruptcy cases are handled by the U.S. Bankruptcy Court for the District of Oregon. Court locations are available in Portland, Eugene, and Medford, depending on where you live within the state.
Chapter 7 Bankruptcy
For many people, Chapter 7 bankruptcy offers the clean break they need to reset their finances and move forward. It can eliminate a significant amount of unsecured debt and give you a genuine opportunity to rebuild. However, before you file, it’s critical to take a hard look at your income, expenses, and long-term financial picture.
Most individuals who qualify for Chapter 7 either have irregular income or have faced major life events. While Chapter 7 can erase a large portion of your debt, it does come with trade-offs. You may have to give up non-exempt assets like a second vehicle or luxury items.
In Oregon, determining eligibility for Chapter 7 bankruptcy involves a means test that compares your average monthly income. As of 2025, the median income thresholds in Oregon are:
- 1-person household: $71,243
- 2-person household: $86,378
- 3-person household: $103,758
- 4-person household: $120,252
- For households larger than four, add $9,900 for each additional member.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy tends to be more complicated than other types, and it’s typically used by businesses or individuals with large amounts of debt or complex finances. Instead of liquidating assets to cover what’s owed, Chapter 11 focuses on reshaping the debt into a manageable repayment plan. These plans usually stretch between four and eighteen months, giving the filer time to stabilize their finances.
Filing for Chapter 11 bankruptcy involves compiling a full financial picture and submitting a range of detailed forms to the court. Key forms you’ll need to submit include:
- Voluntary Petition for Individuals Filing for Bankruptcy (Form B101)
- Summary of Assets and Liabilities (Form B106)
- Schedules A/B through J (listing all property, creditors, income, and expenses)
- Statement of Financial Affairs (Form B107)
- Chapter 11 Statement of Current Monthly Income (Form B122B)
- Creditor Matrix (complete list of creditors with contact info)
- Schedule of Executory Contracts and Unexpired Leases (Form B106G)
- Proposed Disclosure Statement and Reorganization Plan
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is designed for individuals with regular income who need time to get caught up on their debts. In OR, once you file, the court appoints a trustee to review your financial situation—everything from your income and debts to the assets you want to keep.
You’ll then propose a repayment plan that typically lasts three to five years. The terms of your plan will depend on how reliable your income is and which property you intend to hold onto. If you follow through and complete your payments, you may also be eligible to have some of your remaining debt discharged.
The Bankruptcy Process in , Oregon
It’s tough to know when to pull the trigger on bankruptcy, but if it’s clear you won’t be able to pay off your debts within five years, waiting may only make things worse. Filing can offer a way to stop the bleeding, protect your remaining assets, and give you a structured plan to rebuild your finances.
In Oregon, the process starts with getting your financial documents in order. That includes records of your monthly bills, outstanding debts, assets, and yearly income. This information gives the court a clear snapshot of your situation. If anything is missing or incomplete, your case could be delayed or dismissed entirely.
Oregon allows filers to choose between state and federal exemption lists, but you must select one set. You can’t mix and match. These exemptions determine what property you can keep during bankruptcy, such as your home, vehicle, personal belongings, and retirement accounts:
- Homestead: Protects up to $40,000 in equity for single filers and $50,000 for joint filers in a primary residence, which can include a house, mobile home, or floating home.
- Motor Vehicle: Exempts up to $3,000 in equity for a single vehicle.
- Personal Property:
- Household goods and furnishings: up to $3,000.
- Clothing and jewelry: up to $1,800.
- Tools of the trade: up to $5,000.
- Books, pictures, and musical instruments: up to $600.
- Firearms: up to $1,000 for one rifle or shotgun and one pistol.
- Wildcard: Allows up to $400 to protect any personal property not covered by other exemptions.
- Retirement Accounts: Most tax-exempt retirement accounts, including 401(k)s, 403(b)s, and IRAs, are fully protected under federal law, even when using state exemptions.
- Public Benefits: Exempts various public assistance benefits, including Social Security, unemployment compensation, workers’ compensation, and veterans’ benefits.
Work With an Experienced , Oregon Lawyer
Oregon’s exemption laws provide critical protections for your home, vehicle, and other essentials—but only if applied correctly. One misstep could mean losing assets you could have otherwise kept.
That’s why it’s so important to work with a bankruptcy attorney who understands Oregon law. The right legal support can help you avoid costly mistakes, protect what matters most, and guide you toward financial stability with confidence.
Submit a request online or call us today at (866) 345-6784 to speak with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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