The Oregon Homestead Exemption has been interpreted broadly by state and federal courts. Even a mandatory security deposit has been found to qualify for exemption under ORS 18.395 and 18.402. In a memorandum opinion by Judge Albert Radcliffe entered February 9, 2011, the court rejected the prepayment of $3,900 in rent as exempt under ORS 18.395.
Debtors often ask us what will happen to their home if they file for bankruptcy protection. Fortunately, federal bankruptcy law and most states provide for what is often called a “homestead exemption”. A homestead exemption acts as a shield against the claims of certain creditors. It does this by protecting up to a specific dollar amount in real property.