Anyone filing bankruptcy in the state of Idaho must first seek consumer credit counselling. For those who want a clean slate to start over chapter 7 bankruptcy is the best option. However, in order to keep personal assets, the debtor must file for chapter 13 bankruptcy.
Idaho Bankruptcy Topics
- Personal Bankruptcy Options
- Keep Your Home: Bankruptcy and Foreclosure
- Idaho Exemptions to Bankruptcy Liquidation
- Options for Filing Bankruptcy
- Idaho Bankruptcy Courts and Trustees
Personal Bankruptcy in Idaho
For consumers living in the state of Idaho, bankruptcy relief can come in one of two forms. Individuals can file Chapter 7, and have a clean slate to start over or Chapter 13 under U.S. Bankruptcy law.
- Chapter 7 Bankruptcy - During chapter 7 bankruptcy, the trustee of the court can seize all assets that can be sold, in order to distribute the amount of the liquidation among the creditors. However, there are limitations, so the debtor can retain some personal items. Once all of the qualifying property is liquidated, all other non-secured debt is wiped off the books, and the debtor can start fresh, and hopefully make good financial decisions in the future. But, he/she must pass the means test, in order to qualify. The median wage earnings for a single income are $40,910, for a couple is $51,946, and for a household of three, it is $54,633.
- Chapter 13 Bankruptcy - For debtors that have firm convictions regarding the repayment of bills, or for those who do not want to lose the family car or house, chapter 13 may help gets payments to a manageable amount, so people can meet their obligations and climb out of debt within the next 3-5 years. In order to qualify for chapter 13 bankruptcy, debtors cannot owe more than $1,010,650 in secured debt and more than $336,900 in unsecured debt. (See more on Filing Chapter 13 in Idaho).
Filing Bankruptcy during Foreclosure
Filing bankruptcy during foreclosure may put a stay on the proceedings, but chances are good that the debtor is only putting off the inevitable. If the process has already been initiated, the creditor can petition the court to lift the stay, so they can have the opportunity to resell the house and recoup losses. For those who want to save their home, it is better to try to file Chapter 13 bankruptcy, if they get behind in payments, see no possible change for next month, and before the lien holder gives notice.
Idaho Bankruptcy Exemptions
Every state allows for exemptions, under the law. In Idaho, some of the specific exemptions are:
Type of Asset(s)
Details on Applicable Exemption(s)
Real property or a mobile home that is not worth more than $50,000-proceeds of the sale are exempt for six months, and must file for exemption if the property is no one lives on the property yet
The benefits from death or disability, annuity proceeds of no more than $350, fraternal or society benefits, group life, homeowner’s insurance up to the amount of the property exemption, life insurance benefits for a beneficiary-not the debtor, medical benefits
A license to sell liquor, alimony or child support, business partnership property
Firefighters, police officers, and any pensions necessary for support, qualifying ERISA,
Books, clothing, pets, and any other items that are worth no more than $500, and a total amount not to exceed $5,000, building materials, health adds, crops and water rights that qualify for exemption, jewellery up to $1000, older car worth no more than $3000, personal injury compensation, wrongful death compensation needed for support, a gun worth $500 or less
Public assistance, veterans benefits, workman’s comp, aid for the blind, disabled or elderly, AFDC, social security, unemployment
Tools of Trade
What an employee needs for his/her job
Idaho Bankruptcy Filing Options
- Use a Bankruptcy Lawyer - Before filing for bankruptcy, it is strongly recommended for debtors to retain the services of a bankruptcy lawyer. Without legal advice, there are many nuances in the law that can be missed. In addition, representation in court can help answer the pertinent questions A lawyer makes sure all the files are presented to the court correctly, and can verify what is on those forms, to avoid any chance of misunderstanding or fraud.
- Use a Filing Service - In order to save money, some debtors decide to use a filing service. Unfortunately, this choice can be risky and detrimental to a bankruptcy case. The filing service is only responsible for making sure the paperwork is filled out. They do nothing to represent the debtor in court, nor do they have to answer for any forms that may be missing. A filing service can give absolutely no legal advice.
- File “Pro Se” - Debtors may file pro se, if they plan to represent themselves in court. However, this action is very risky at best. Unless debtors have been a bankruptcy lawyer in the past, there is simply too much data to know before going to court. Thus, representation may be necessary to answer questions during the proceedings. In addition, debtors do not want to run the risk of being charged with fraud, even if something is missed accidentally.
Courts and Idaho Bankruptcy Trustee Information
Idaho District Court
400 James A. McClure Federal Bldg
and United States Courthouse
550 West Fort Street
Boise, ID 83724-0101