Idaho Bankruptcy Laws
The process of going through bankruptcy is protected through state and federal laws. Bankruptcy laws are different in every state and can be rather complicated. So before you make a decision on bankruptcy, make sure you know all the facts about how the laws will affect you. Find answers by speaking with a local bankruptcy attorney. When you complete the free form on this page, you can get a free case evaluation with a lawyer in your area.
Idaho residents who are struggling with their debt load can turn to bankruptcy court for legal protection. While bankruptcy is not an ideal situation, for some it provides the only solution to overwhelming debt. Before filing for bankruptcy, make sure you understand the protections you receive under Idaho bankruptcy laws.
Idaho Bankruptcy Exemptions
Under Idaho bankruptcy laws, the following assets are exempt:
- Up to $100,000 for a homestead
- Up to $500 per item for household goods, clothing, books, family portraits, heirlooms, and musical instruments, with a total of $5,000.
- Up to $1,000 for jewelry
- Up to $1,500 for tools of the trade, including books
- Up to $5,000 for one vehicle
- Burial plot, including family plot
- Health aids
- 75 percent of disposable earnings
- Public and federal benefits
- Medical, hospital, or surgical care benefits
- Military equipment
- Disability benefits
- Alimony or child support
- Personal injury or wrongful death payments
- A firearm worth less than $500
- Certain water rights for cultivated lands
- Life or group insurance
- Unmatured life insurance policy
- Up to $800 for personal property
- Pension or profit-sharing plan
- Workers’ compensation or crime victims’ benefits
- Up to $1,250 per month for annuity contract proceeds
If you still have a car loan in place, you must reaffirm it within 45 days of your 341 meeting, even if you are not behind on your payments.
Idaho Chapter 7 Bankruptcy Law
Debtors who pass the means test may file Chapter 7 bankruptcy. The means test compares your income with the average income in your area. If you make at or below the median level, you can file Chapter 7, which wipes out most debts after trustees seize assets. Certain assets, like back taxes and missed child support payments, cannot be discharged under bankruptcy, even with Chapter 7 bankruptcy.
Idaho Chapter 13 Bankruptcy Law
Debtors who need to protect certain assets, wish to try to repay their debts or do not qualify for Chapter 7 bankruptcy may file Chapter 13 bankruptcy. Under this bankruptcy plan, debtors repay their debts through the courts under a court-supervised repayment plan. The goal is usually to repay debts in approximately five years.
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