Oregon Bankruptcy Laws

Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh start. Most people file for Chapter 7, Chapter 13 or Chap 11 BK. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Bankruptcy protects consumers against lawsuit from creditors. But bankruptcy laws do not protect you when you are going through the mandatory credit counseling you have to go through before you file for bankruptcy. Credit card debt creditors can still pursue collection actions and, if you're a homeowner facing foreclosure, the lender can continue foreclosure proceedings until you are able to fulfill the mandatory counseling requirement and file for bankruptcy.

Find a Bankruptcy Lawyer in Oregon with our debt relief directory and get a free BK evalution for a loan modification, chapter 7, 11, 13 or debt settlement that could lead to a fresh start. Find out from a local attorney if bankruptcy is the best for your situation.

Oregon Bankruptcy Exemptions
An exemption limit applies to any equity you have in property you own. The property doesn't necessarily have to be real estate. It can be a car or other collateral that secures a loan. Equity is the difference between the value of the property and what is owed on it.

OregonBankruptcy.com explains that if the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions. If you elect to keep making payments on the loan, you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.

According to Lawyers.com, under Oregon chapter 7 bankruptcy laws and Oregon chapter 13 bankruptcy laws, you may keep:

• Homestead to the value of $30,000
• Proceeds from sale of homestead to the value of $30,000
• Mobile home and lot instead of homestead to the value of $23,000
• Mobile home with no associated real property to the value of $20,000
• Books, pictures and musical instruments to the value of $600
• Clothing, jewelry and personal items to the value of $1,800
• Tools of trade to the value of $3,000
• One motor vehicle to the value of $2,150
• Household goods and furnishings to the value of $3,000 and provisions and fuel for 60 days
• Animals and poultry for family use to the value of $1,000 and food for animals and poultry for 60 days
• Professionally prescribed health aids
• Spousal support, child support or separate maintenance necessary for support
• Award under any crime victim reparation law
• Personal injury awards to the value of $10,000
• Compensation for loss of future earnings if necessary for support to the value of $10,000
• Veterans' benefits and loans
• Earned income tax credits
• Pension benefits
• 75% of disposable earnings, unemployment compensation, aid to blind and aid to disabled
• One rifle or shotgun and one pistol to the value of $1,000
• Burial lots
• Cash for sold exempt property if same amount as exemption
• Pension, annuity or retirement allowance deposited in an account to the value of $7,500
• Exempt funds, which are identifiable, deposited in bank to the value of $7,500
• Public assistance grants
• Old age assistance
• Medical assistance
• Workers' compensation to the value of $7,500
• Life insurance proceeds
• Group life insurance proceeds
• Annuity policy benefits to the value of $500 per month
• Health and disability insurance
• Any other personal property to the value of $400

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.