How to File for Bankruptcy in Idaho
Achieve financial freedom with our help!
The two most common forms of bankruptcy are Chapter 7 and Chapter 13, but
understanding exactly how to file can be quite confusing, especially without
a Boise bankruptcy lawyer on your side. Avery Law wants to simplify the
process for you and walk with you every step of the way. Our team of attorneys
has three decades of valuable experience to administer to your case.
Call (208) 285-2085 for your complimentary consultation!
Attend Pre-Bankruptcy Counseling & Pre-Discharge Education
Under the 2005 Bankruptcy Act, all debtors must participate in credit counseling
within six months prior to filing for Chapter 7 or Chapter 13 bankruptcy.
You must be able to show that you received credit counseling from an agency
approved by the U.S. Trustee’s office before you file any paperwork.
After you’ve filed, you must also complete a pre-discharge debtor
education course before you can officially receive a bankruptcy discharge.
Approved Idaho credit counseling agencies can be found
Approved Idaho debtor education agencies can be found
Determine Which Exemptions You Qualify For
Bankruptcy exemptions clarify which property and assets you get to keep
when it’s all said and done. Exemptions apply to both chapters,
but may affect you differently based on how you file. In Idaho, you cannot
use any federal bankruptcy exemptions; instead, you must use the Idaho
Idaho offers exemptions for a variety of assets, including:
- Up to $100,000 in equity in your home
- Up to $7,000 of value in a motor vehicle
- Up to $7,500 of household appliances and heirlooms
- Up to $800 of personal property
- Up to $2,500 worth of tools used for your trade or business
- Unlimited protection for health aids and public assistance
- Unlimited protection for medical savings accounts
- Insurance benefits necessary for support
- Alimony and spousal support payments
Married couples who file jointly may double these exemption amounts with
the exception of the homestead exemption.
Compile and Submit Your Bankruptcy Forms
The forms you are required to fill out will depend on whether you file
for Chapter 7 or Chapter 13. These forms can include a bankruptcy petition,
certain schedules regarding your financial information, and the means
test form. This involves creating an itemized list of your current sources
of income, major transactions occurring over the past two years, monthly
living expenses, all secured and unsecured debts, and all assets. Tax
returns, title deeds, and loan documents are also relevant.
It is imperative you remain truthful and thorough during this step. If
a judge or your creditors suspect or have reason to believe you have falsified
or omitted certain information from your bankruptcy filing, the outcome
of your case could be jeopardized. Once these forms have been completed
and all financial documents are collected, you and your attorney will
need to file a petition and several other forms with your local Idaho
district bankruptcy court. Chapter 7 filings are subject to a non-waivable
$335 filing fee, though in certain situations you may be able to pay it
in installments. The fee for filing for Chapter 13 bankruptcy is $310
and must be paid in full at once.
Immediately after filing, you will be protected from all forms of creditor
harassment and collection efforts under automatic stay. Creditors may
not contact you, attempt to claim your property, or pursue foreclosure.
Pertinent bankruptcy forms can be found
Submit a Chapter 13 Repayment Plan
If you are filing for Chapter 13 bankruptcy, a repayment plan must also
be submitted for approval. While Chapter 7 bankruptcy involves liquidating
your assets to satisfy creditors, Chapter 13 involves a reorganization
of your finances to repay creditors over a period of three to five years.
This repayment plan must satisfy the following requirements:
- It must be created in good faith.
- Unsecured creditors must be paid at least as much as they would have been
paid if you would have filed for Chapter 7 bankruptcy.
- All of your disposable income must be paid into the plan for at least three years.
If approved, these payments must be made in full and on time throughout
the duration of your payment plan. In many cases, payments can be automatically
deducted from your wages. Your lawyer can help you establish an acceptable
payment arrangement with the courts.
Attend a Meeting of Creditors
Your bankruptcy trustee will arrange a meeting of creditors about one month
after filing for either form of bankruptcy. Commonly referred to as a
“341 meeting,” this meeting provides your creditors the opportunity
to question you under oath about your financial affairs. Creditors are
more likely to attend a Chapter 13 meeting than a Chapter 7 meeting to
question the terms of a person’s proposed repayment plan. Your attorney
will negotiate any disputes that should arise during this meeting. If
no challenges are proposed by your creditors, your plan will be approved
at a subsequent court hearing before a judge.
Wait for Your Bankruptcy Discharge
This is also based on the chapter under which you file. Chapter 7 is generally
much quicker and can be resolved in as little as four months. Because
a repayment plan is included in Chapter 13, a discharge may not become
official until between three and five years after you being paying off
Start the Filing Process Today with Our Boise Bankruptcy Lawyer
While there is a great deal of information involved with the bankruptcy
process, the end results can be well worth it. Filing for bankruptcy can
help you get out of debt and achieve a fresh start to your finances. Our
firm looks forward to helping you achieve the best possible outcome.
Taking back control of your finances shouldn’t be put off another day.
Get in touch with Avery Law today and find out what benefits you may experience by filing for bankruptcy.