• Oregon offers bankrupt homeowners an exemption of up to $40,000.oregon image by Dawngo from Fotolia.com
  
  When filing for bankruptcy, homeowners risk losing their residence to creditors in order to cover their debts. Oregon provides a homestead exemption--an amount of equity not included in bankruptcy proceedings--which can help homeowners keep their residence. Homeowners must follow state guidelines regarding homestead exemption in order to qualify.
  
  

State Exemption Amount

• Oregon offers a state homestead exemption of up to $40,000. If there are two or more debtors sharing equity in the home, Oregon offers a joint exemption of up to $50,000. In 2009, legislators attempted to raise the maximum exemption to $75,000; as of 2010, this bill is still in committee. Oregon does not allow debtors to claim federal homestead exemptions.
  
  

Criteria for Exemption

• The amount of homestead exemption you are entitled to depends upon how much equity you have in the home and how large the home is. Oregon also requires you to be a homeowner for at least 40 months prior to filing bankruptcy. If you do not meet this requirement, you must follow the homestead exemption law in the state you resided in longest for the two years prior to bankruptcy.
  
  

Keeping Your Home

• In Oregon, you will not lose your home if your exemption covers the amount of equity you have in the home. For example, if you have equity of only $25,000 and receive an exemption of $30,000, you will not lose your home.