This past year, we saw the passage of new law in Oregon that allows debtors who file bankruptcy to use Federal Exemptions, in lieu of State Exemptions, to protect property. (Exemptions are laws that protect your property or assets when you file for bankruptcy relief.)
Part of the Federal Exemptions is the “Wildcard” exemption. This exemption allows the protection of up to $1,225 plus $11,500 of the unused Homestead exemption on any property. This means that joint debtors (husband and wife) can protect up to $25,450 in any property, including cars, tax refunds, wages and commissions, and various other assets. Prior to the Federal Exemptions being available in Oregon, more chapter 7 bankruptcies were “asset cases,” meaning people could lose some assets as part of the bankruptcy process. Now that we have the wildcard exemption firmly in place, there are much fewer “asset cases” in bankruptcy.
If you have questions regarding your property and how it may be affected by filing a bankruptcy, please call to schedule your free in-office bankruptcy consultation.