Legal Question in Real Estate Law in Oregon

Re: Home Ownership

When you file a Chapter 7 bankruptcy, you automatically create an estate (essentially a legal person) who owns all of your non exempt property. Exempt property is usually defined by state law. Under Oregon law, your equity in your home (the difference between its fair market value and the debt secured by the home) is exempt up to a certain amount. For a single individual, the exemption is $25,000. Under the bankruptcy code you are also allowed to reaffirm certain debts, such as your home mortgage. So it may be possible for you to file bankruptcy and still keep your home.