Oregon Bankruptcy Exemptions

Divorce and allocation of Oregon bankruptcy exemptions between husband and wife

Husbands and wives may file separately. This usually occurs during separation or when divorce proceeding are pending. In the event both husband a wife file individually, the court may consolidate the case and require a joint administration because of the joint interests owned in property of the marital estate, and each individually, is identical to the estate administered through federal court. After consolidation of cases, the Oregon bankruptcy exemption elections become evermore complicated because of the potential for disparate opinions, divorce partitions of title, and personal considerations. Nevertheless, the court may order joinder and allocate exemptions provided by the State of Oregon exemption law. Seemingly impassable obstacles are common, but are resolved by presumptions of law and the discretion of the court.

How Oregon conflicts of law are resolved

Rule 1015 of the Fed. rules Bk. Proc. requires the court to consider conflict of interest between estranged husbands and wives, and compare to the effect upon individual estates and unique creditors. Through this balancing test, if the court determines a joint administration will not unfairly prejudice any interested party, joint administration is the preferred method for case administration to avoid duplicity.