Can I keep my house and car if I file for bankruptcy?
Typically, you can keep your house or car when you file for bankruptcy, but there are important
exceptions. In a Chapter 7, you must meet the exemption limits provided for by Oregon law. For an
individual petitioner, there is an equity limit of $30,000.00 for a home and $2,150.00 for a vehicle. For
joint petitioners, there is an equity limit of $39,000.00 for a home and $4,300.00 for vehicles. If you
have more equity than these exemption limits, you typically must file a Chapter 13 to save your
property from liquidation in bankruptcy (an attorney may reveal other important options). However,
even if you meet the equity limits provided for by Oregon law in a Chapter 7 case, keeping a house,
car, or other secured property is difficult to do in bankruptcy if you are not current on payments. The
creditor has a right to its collateral if you are in default, and usually, filing a Chapter 7 petition will only
temporarily stop a secured creditor from repossession or foreclosure. Typically, to keep secured
property that you are in arrears on, you must file a Chapter 13 to keep the property.