Exemptions On Assets
Chapter 7 debtors are allowed to retain certain assets so long as their equity does not exceed
certain values. If the asset does exceed the protected value (called exemptions), the trustee
will either require you to pay him the excess value, OR the trustee will take the asset, sell it,
give you the amount of the exemption and give the remaining funds to your creditors.
| ASSETS |
EXPLANATION |
PROTECTED |
|
Car, Truck,
Motorcycle |
Each debtor is allowed only $3000 equity in one vehicle. Married debtors are each allowed $3000 per vehicle, two vehicles only. One vehicle is allowed two exemptions (i.e.$6000), if the couple owns only one car. |
$ 3000. |
|
Cash, bank balances
|
Debtors may have a cash exemption up to $400 on hand, in checking, savings, or other financial accounts upon filing for bankruptcy. Any amount that exceeds $400 is to be considered an unsecured asset and will be taken and distributed to your creditors. |
$ 400. |
|
House
|
This is a homestead exemption for your place of residence. If your equity is $40,000 or less you can keep your house. When two or more members of a household are debtors, their combined exemption is $50,000. |
$ 40,000. |
|
Mobile Home
|
The Mobile Home exemption exists only when the mobile home is the sole residence of the debtor. The exemption is $40,000, except when two or more members of the household are debtors, the exemption is $50,000. |
$ 40,000. |
|
Tax Refunds |
Tax refunds are not exempt; however, the Earned Income Tax Credit amount is fully exempt. |
SOME |
|
Household goods and furnishings |
Property used for personal, family or household use, which include items like refrigerator, oven, W/D, furniture, radios, television set, and computer equipment, are exempt to the total value of $3000. The value is based upon a reasonable "yard sale" price, not a replacement cost. |
$ 3000. |
|
Clothes, etc. |
Wearing apparel like furs, rings, earrings, necklaces, & bracelets are exempt to a value of $1800. When a couple is filing, the exemption is $3600. |
$ 1800. |
|
Books, pictures, collections, etc. |
Books, pictures, musical instruments, art objects, antiques, stamp, coin, and other collections are exempt up to the total value of $600. When a couple is filing together, their combined exemptions shall not exceed $1200. |
$ 600. |
|
Salary and Wages Owed |
Seventy-five percent (75%) of money owed to you by an employer on the date of filing is exempt. The remaining 25% is not protected. |
75% |
|
Pets, animals |
Pets and other animals (i.e., poultry) kept for family use are exempt to the total value of $1000. |
$ 1000. |
|
Personal Injury Money |
Money that is traceable directly from a personal injury settlement are exempt to the total value of $10,000. Thus, any money that has been awarded in excess of $10,000, is not protected. |
$ 10000. |
|
Life Insurance |
Life Insurance with cash value is not exempt. |
NONE |
|
Tools of Trade |
Tools and equipment necessary for the debtor to carry on the trade, occupation or profession by which the debtor earns a living are exempt to $3000. When a couple is filing together, their combined exemptions are $6000. |
$ 3000. |
|
Firearms |
Those debtors who are in possession of firearms shall be entitled to keep one rifle or one shotgun, and one pistol, for total exemption of $1000. |
$ 1000. |
|
Accounts receivable |
If anyone owes you money, including a judgment creditor, friend, relative, it will not be protected. In order words, the trustee will require payment to the court. |
NONE |
|
401K Plan, IRAs Pensions, etc. |
Regardless of the balance or value of the plan, all money, stocks, bonds, etc. that are inside a tax-qualified retirement account is exempt. |
ALL |
This is a brief explanation of most of the exemptions that are allowed under Oregon’s exemptions statutes. Exemptions are a complex area of bankruptcy law. A comprehensive evaluation is needed to be sure your assets will be protected during your bankruptcy.