Bankruptcy is a complicated process that has become even more difficult
in recent years. Bankruptcy laws have changed and new stipulations
apply for banning certain kinds of bankruptcy and increasing the
payments for others. Do-it-yourself methods are available online, but
due to the new laws, petitions can be filed incompletely. Inaccurate
filing can be cause for case dismissal.
It is often advisable to consult an attorney, as he or she will insure
that the paperwork is properly filed and every detail is in place. All
this paperwork can be processed electronically or in person. Some
debts, no matter the circumstances, cannot be discharged. Some of these
include alimony, child support, student loans, and taxes.
To determine for which kind of bankruptcy an individual qualifies, the
court will compare the individual's income as calculated against the
median income of the state of Idaho. The number of people living in a
home, the amount of income, recent expenses, and history will be
considered under petitioning.
Chapter Seven Bankruptcy
Idaho offers two different kinds of bankruptcy options. Either of the
options can be filed through a sole individual or through a joint
filing with a husband and a wife. Chapter Seven bankruptcy allows those
who are unable to pay a minimum of one hundred dollars a month on their
debts to relieve themselves of this burden in as little as three months
or as much as six month.
Chapter Seven bankruptcy can halt foreclosure and debt collectors. This
kind of bankruptcy assigns a trustee to a case where he or she will
sell an individual's un-exempt property for maximum value. The
compensation obtained will then be used to pay creditors.
Certain items are exempt from sale and in Idaho can include some real
estate, disability benefits, most occupational pensions, liquor
licenses, appliances, burial plots, jewelry under one thousand dollars,
motor vehicles under three thousand dollars, workers compensation, and
Any property that has not been identified as exempt can only be kept if
the individual pays the necessary value of the item. The exemption is
determined by the equity of an item. Most property loans are exempt but
only if payments continue to be made during the process of bankruptcy.
Joint filing is required to claim an exemptions set. Trustees are paid
through a certain percentage of the compensation acquired.
Chapter Thirteen Bankruptcy
Chapter Thirteen bankruptcy is very different than Chapter Seven
bankruptcy. Upon evaluation if an individual is able to pay more than
one hundred sixty dollars a month against his or her debts, then he or
she will be qualified for Chapter Thirteen bankruptcy.
This form of bankruptcy allows individuals to pay their own debts using
their own income. No property must be sold. A payment plan based on the
individual's income and amount of debt will be specially prepared. A
certain amount will be identified that should be paid each month for a
maximum of five years. This will cut interest payments and allow
individuals to be debt free on their own accord.