How long does it take to file bankruptcy in Idaho?

How long it takes to file chapter 13 bankruptcy in Idaho depends on how long it takes to complete bankruptcy requirements. Before filing personal bankruptcy, which includes chapter 13 and 7, you must meet eligibility and general requirements. First, you must complete a means test. This isn’t an actual test, but a formula used to determine which bankruptcy chapter you’re eligible for.

To complete the means test, you need to know your monthly income after debts and your household size. You must subtract your monthly income after debts from Idaho’s median income according to your household size. The amount of disposable income--money you have left--determines which bankruptcy chapter you qualify for. Failing the means test qualifies you for chapter 13. However, passing the means test qualifies you chapter 7. There is a huge difference between the bankruptcy chapters. Chapter 13 requires you to pay unsecured and secured creditors back in 36 to 60 months. Chapter 7 allows you to wipe out many of your unsecured debts, such as medical bills and credit card debts.

Once you know which bankruptcy chapter you’re eligible for, you must complete creditor counseling. Pre-bankruptcy credit counseling consists of one session where you discuss your finances with a U.S. Bankruptcy Courts’ approved credit counselor. After you complete the session, you must submit a certificate of proof to the bankruptcy court along with your bankruptcy petition. To find out the exact amount of time you need to complete bankruptcy requirements, talk with a bankruptcy lawyer.