How to File for Bankruptcy in Idaho
Filing for bankruptcy in Idaho is a process that requires research and preparation before any steps can be taken. One of the first steps that a person must take involves researching federal bankruptcy rules and guidelines. The bankruptcy laws in the state of Idaho closely mirror the laws that are in place throughout the rest of the country. In addition, it is important to take a look at the specific procedures that apply in Idaho's court system.
Deciding which form of bankruptcy is appropriate based on a debtor's circumstances is something that must be done early in the bankruptcy process. Most people who qualify for bankruptcy will qualify for Chapter 7 bankruptcy. This is a form of bankruptcy that allows for unpaid debts to be discharged. Other debtors will qualify for Chapter 13 bankruptcy if they are realistically capable of slowly paying back unpaid debts over time using a structured payment plan. However, these are not the only options on the table. There are several options available for debtors with specific circumstances. For instance, Chapter 12 bankruptcy is something that's available to fishermen and farmers. Chapter 11 bankruptcy is an option that is available to individuals with high amounts of debt or large business-related debts.
Taking the First Steps Toward Bankruptcy in Idaho
A means test is something that a debtor must submit to the court to determine eligibility for bankruptcy. This test requires a debtor to share detailed information regarding income, assets, liabilities and a number of other factors. One of the most important steps in the bankruptcy process is the actual act of filing a bankruptcy petition with the court. A bankruptcy petition formally triggers something called an automatic stay. An automatic stay prevents all creditors from attempting to contact a debtor or collect debts that are unpaid.
It is important to know that preparation for bankruptcy actually begins long before a petition is filed with the court. A person must complete a credit counseling course during the six months leading up to formally filing for bankruptcy. This course must be taken through an approved provider in the state of Idaho. The complete list of approved course providers can be found here. In addition, a debtor education course must be completed at some point during the bankruptcy process. The list of approved providers for this course can be found here. One other key step in the bankruptcy process is attendance at something called a meeting of creditors. This meeting is mandatory for all debtors. It is important because it provides creditors with a final chance to prove that a person filing for Chapter 7 bankruptcy possesses nonexempt assets that can be turned over. In addition, it provides creditors with the opportunity to object to the terms of a payment plan that has been set up under a Chapter 13 bankruptcy case.
The Specifics of Filing for Bankruptcy in Idaho
The United States Bankruptcy Court for the District of Idaho has locations in Boise, Coeur d'Alene, and Pocatello. The filing fee when filing for Chapter 7 bankruptcy in Idaho is $335. The filing fee when filing for Chapter 13 bankruptcy in Idaho is $310. A full list of the fees, forms and rules for the bankruptcy process in the state of Idaho can be accessed here.
Consulting with a bankruptcy attorney before making any moves to file for bankruptcy in Idaho is highly recommended in most cases. The complicated nature of both federal and local bankruptcy rules can be overwhelming for a person without a legal background. In addition, extra care must be taken to ensure that all deadlines are met and all information is accurate.