Oregon Bankruptcy Discharge

Will an Oregon Bankruptcy Discharge Take my Property Away?

Although bankruptcy law is a federal law, it provides certain "exemptions" which are found in state law. Oregon has at least 33 exemptions available. If the value of your equity in the property is below the exemption amount, then you will be entitled to keep the property. If at the time of the Oregon bankruptcy filing your equity in the property is more than the exemption amount, the court can require you to deliver the property to the bankruptcy trustee who will sell it and use the money to pay on your debts. In valuing property, the court normally uses fair market value. For example, the court does not maintain a used car lot, so a car whose value is more than the exemption amount will be delivered to the trustee who will usually wholesale it to a used car dealer. Your property's value at the time of an Oregon bankruptcy filing is the key factor in keeping your property.

It is important to remember that the bankruptcy court values only the equity in an item to determine if it falls within the exemption allowed for an Oregon bankruptcy discharge. For example, a car worth $10,000 wholesale with a loan against it in the amount of $9,000 has only $1,000 of equity. Because of that, you may be able to keep your property even with an Oregon bankruptcy discharge.

Some of the exemptions allowed and more commonly used in an Oregon bankruptcy discharge:

• Homestead
  • One debtor - $30,000
  • Joint debtors - $39,600
• Mobile home
  • One debtor - $23,000
  • Joint debtors - $30,000
• Vehicle - $2,150 per debtor
• Home Furnishings - $3,000
• Clothing/Jewelry - $1,800 per debtor
• Miscellaneous (usually used for cash and bank accounts) - $400 per debtor
• Retirement Accounts - 100%
• Net unpaid wages owing at time of filing - 75%
• Tools used in current employment - $3,000 per debtor

How to Prepare for an Oregon Bankruptcy Filing

It is important to understand property valuation before filing for an Oregon bankruptcy. It is also possible, within certain limits, to do some planning to convert what may be a non-exempt asset to an exempt asset and, thus, not lose it to the court in the event of an Oregon bankruptcy filing.

The most common property people lose is income tax refunds and checking account funds. Although each case is different and each trustee has his or her own limitations, if the combination of cash, bank accounts, stock and tax refunds exceeds $1,000 - $1,500, an Oregon bankruptcy filing could put you in jeopardy of losing it to the Trustee. Therefore, spend it before you file for an Oregon bankruptcy, or you could lose it to the court.

Whatever you do, do not use the money to pay a loan owed to a relative. However, you should consult with OREGON FRESH START prior to spending the money or trying to convert a non-exempt asset to an exempt asset. You need to be prepared before seeking an Oregon bankruptcy discharge or you could lose your property. OREGON FRESH START will help you prepare for Oregon bankruptcy discharge to get your finances back on the path to recovery.

For more information about what possessions are exempt from Oregon bankruptcy judgment, please Contact Us.