Bankruptcy in Idaho Falls, ID
Are you contemplating bankruptcy or hiring a bankruptcy attorney in Idaho Falls, Idaho? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.
Types of Bankruptcy in Idaho Falls, Idaho
Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Idaho Falls, ID to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.
Residents of Idaho Falls facing bankruptcy will most likely have to appear before the U.S. Bankruptcy Court for the District of Idaho. This court generally has jurisdiction over bankruptcy cases.
Chapter 7 Bankruptcy
Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Idaho Falls who can help you to decide if a liquidation plan is right for you.
Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.
A Means Test will be required for anyone in Idaho Falls that is seeking to file bankruptcy under Chapter 7. This is designed to make sure that your income matches the requirements for this type of bankruptcy protection. However, Idaho Bankruptcy Law reminds you that certain debts cannot be discharged under Chapter 7. Child support, alimony, and student loans must all be paid in full, even as you are protected from creditors for other types of debt.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.
Idaho Legal Aid states that Chapter 11 is generally used by businesses or corporations operating in Idaho Falls. Those that take advantage of the protections offered by Chapter 11 usually do so to keep their business afloat while they slowly pay off creditors over time. This can help you keep your business and not have to liquidate to satisfy a creditor.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Idaho Falls, ID after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to a five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.
If you take advantage of Chapter 13 bankruptcy in Idaho Falls, you will generally have 3 to 5 years to pay off your debts. The Idaho Courts provide an online filing form for Chapter 13. However, there are other documents you’ll need, such as:
- A list of all creditors
- A list of all the debtor’s property
- Source of the debtor’s income
The Bankruptcy Process in Idaho Falls, Idaho
There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.
In Idaho Falls to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.
If you are facing tremendous debt in Idaho Falls, you must first determine if bankruptcy can help you, as well as what type of bankruptcy you need to file. Once you’ve determined this, you should consult with your attorney, and then begin the filing process. Once you begin this process you should refrain from paying creditors any further.
There are several exemptions that can benefit you, according to the Idaho Bankruptcy Code. You can exempt your residence up to $175,000, and your motor vehicle up to $10,000. Household furnishings can also be protected, up to $7,000 In addition, pensions, health benefits, and life insurance are also exempt from creditors.
At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.
Work With an Experienced Idaho Falls, Idaho Lawyer
Hiring a local bankruptcy lawyer in Idaho Falls during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts can become discharged. An experienced Idaho attorney can also offer you guidance to improve the outcome of your case.
Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Idaho Falls can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Idaho state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!