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.

Exempt Property
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 some firearms.

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.