Overview Of Idahos Bankruptcy Filing Process
The journey of going through bankruptcy requires multiple steps. Here is a brief overview of the bankruptcy filing process in Idaho:
Attend Pre-Bankruptcy Counseling & Pre-Discharge Education
Determine Which Exemptions You Qualify for
Compile and Submit Your Bankruptcy Forms
Submit a Chapter 13 Repayment Plan
Attend a Meeting of Creditors
Wait for Your Bankruptcy Discharge
Idaho State Tax Commission
If you receive a tax bill and you’re involved in an ongoing bankruptcy proceeding, contact us and provide us with:
- The name on the bill and the billing letter ID number or reference number
- The date your bankruptcy was filed
- Your bankruptcy case number
- The name of the person representing you in your bankruptcy
If you haven’t yet filed all your Idaho tax returns, you should do so. You’ll need to advise your trustee regarding about the tax periods for which you owe, as well as tax, penalty, and interest balances.
Temporary stop on collection activity
Your bankruptcy filing temporarily stops Tax Commission enforcement action to collect a debt related to tax periods that are “pre-petition” . You should pay in full or make payment arrangements to satisfy all debts associated with tax periods that are “post-petition” .
Determining whether your tax debt can be discharged is a matter to discuss with your trustee or attorney. In many cases, your tax debt, or a portion of it, may not be discharged. Contact us as soon as possible after your bankruptcy is discharged to discuss payment arrangements.
Page last updated March 28, 2019. Last full review of page: September 19, 2016.
Whats The Difference Between Chapter 7 And Chapter 13 Bankruptcy
The major difference is time Chapter 7 takes 4-6 months Chapter 13 takes 3-5 years and money. You can have most, or all your unsecured debt discharged in Chapter 7 bankruptcy. In Chapter 13, some of your debt is forgiven, but only if you meet the conditions approved by the trustee and bankruptcy judge.
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Fill Out The Bankruptcy Forms
You’ll complete a few dozen pages of forms, in which you tell the court about all of your property, debts, income, expenses, and prior transactions. You’ll list the names of all your creditors, property, and income, list your property exemptions, and decide what you want to do about each of your secured debts. Finally, you’ll disclose property transactions that occurred up to ten years before your case.
It May Not Be Right For You
The first thing I should say is that bankruptcy might not be the best option for you. I strongly suggest that you have a debt expert assess your situation first. Sometimes we can help you get out of debt without going bankrupt. Fill in the form on the right for a free consultation. Theres no cost to you and you can get all your questions answered.
For the rest of this article, lets assume that its the right option for you and you now want to know how to declare bankruptcy.
Before diving into the process, lets first consider the benefits of going down this path, especially if you are unable to pay your debts when they fall due:
- We stop the harassing calls fast! Many of the other bankruptcy services rely on you to do a lot of the work yourself. This can be confusing and stressful. One of the things we do for you is contact each of your creditors and tell them that we will be acting on your behalf so they must call us rather than you! This is actually a legal requirement that they must observe.
- We put all the documentation together for you. Imagine how much easier it will be if you dont have to deal with all the paperwork and calculating all the numbers etc?
- We have done this thousands of times before so we know the best way to work through the process. We understand that youve had enough stress and anxiety with all this, you dont need any more!
Many of our clients talk about the sense of relief they feel once they declare bankruptcy.
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Filing Chapter 13 In Idaho
Chapter 13 allows individuals that own property in the State of Idaho to pay off their debt over a period of several years. This is know as a type of reorganization bankruptcy and allows those with a steady income the opportunity to pay off their debt and still retain ownership of their property. You may be able to stretch out your payments and your creditors may also be more inclined to reduce the amount of your payments. Payment plans are normally centered around your disposable income, that is, the income that you have available after having paid for the necessities of life. The bankruptcy court will appoint a trustee or plan administrator whose role is to collect and disperse payments to your creditors.
Wait For Your Bankruptcy Discharge
This is also based on the chapter under which you file. Chapter 7 is generally much quicker and can be resolved in as little as four months. Because a repayment plan is included in Chapter 13, a discharge may not become official until between three and five years after you being paying off certain debts.
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Advantages Of Chapter 13 Bankruptcy
Most people thinking about bankruptcy will choose Chapter 7 if they qualify for it, because Chapter 7 is usually over in just a few months and it totally wipes out most debts. But Chapter 13 may be right for people who are overwhelmed by secured debt because it offers ways to:
- restructure mortgage payments to save a home from foreclosure
- reduce the amount of some secured loans to match the value of the property , and
- reduce certain tax debts that cant otherwise be discharged in bankruptcy.
Vermont Bankruptcy Lawyer Cost
If you are thinking about hiring a lawyer to help you with your Chapter 7 bankruptcy in Vermont, it is best to set up a few free consultations with bankruptcy lawyers in your area. The average cost of a bankruptcy lawyer in the Green Mountain State is around $1,150, though the relative complexity of your financial situation will determine how much a lawyer will charge for your Vermont bankruptcy case.
Attorney cost estimate: $1,100 Ã¢â¬â $1,200
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What Happens To Your Income
Throughout the bankruptcy process, you will be required to submit monthly revenue and expense reports to your LIT.
If you have surplus income, your bankruptcy term may need to be extended up to 36 months. However, if your income increases during your bankruptcy you may find a new job while you are bankruptcy your term wont necessarily increase. Your monthly income is based on your average monthly income, as opposed to income month over month.
Youwill also need to provide yourLITwith the appropriate information so they can file tax returns on your behalf.
Exemptions In British Columbia:
- No limit on clothing for you or your dependents all clothing is exempt from bankruptcy
- Household furnishings and appliances up to $4,000
- One motor vehicle up to $5,000 unless you are behind on child support payments, in which case the limit is $2,000
- Work tools and work-related property up to $10,000
- No limit on medical and dental aids for you or your dependents
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How To File Bankruptcy In Vermont For Free
If your income is less than 150% of the federal poverty guidelines you can apply to have the fee for filing bankruptcy in Vermont waived. If you are not eligible to do so, you can file your Chapter 7 bankruptcy in Vermont for free by asking the court for permission to pay the fee installments after your case has been filed and you are protected by the automatic stay.
Signs Of A Debt Problem:
- Overwhelming stress about money and general finances
- Only making minimum payments
- Accumulating more debt
- Using assets to pay down debts
- Receiving collection calls/text messages or harassing letters
- Using credit to make debt payments
- Borrowing from friends or family members to make a debt payment
- Applying for, receiving or being denied a bank debt consolidation loan
- Missing payments altogether
- Uncertainty about how much you owe and to who
- Experiencing legal action, wage, bank account or other asset seizures
Find out whether a personal bankruptcy is your best option to leave debt behind for good. Book your free confidential debt consultation today.
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The Two Kinds Of Bankruptcy Most Consumers Use
This website focuses on the two most common types of bankruptcy filed by individuals: Chapter 7 and Chapter 13. But heres a quick summary of the six types of bankruptcy most commonly filed under the bankruptcy code they get their names from the chapters where they appear in the code.
Chapter 7 Bankruptcy
- Chapter 7 lets individuals wipe out most kinds of debt in just a few months.
- You get to keep certain kinds of propertyfor example, at least some of the equity in your home, your car, clothing, personal items, and property that is essential to your profession. This type of property is called exempt property, and many Chapter 7 filers find that exemptions cover most of what they own.
- If you have nonexempt property, the bankruptcy trustee will sell it to repay your creditors as much as possible.
- To qualify for Chapter 7, you must pass the means test, showing that your income is less than the state median income for your family size.
- Most bankruptcies filed in the U.S. are Chapter 7 bankruptcies.
Chapter 13 Bankruptcy
Bankruptcy Exemptions In Nova Scotia
- No limit on clothes for you and your family
- No limit on fuel and food for your family
- Up to $5,000 in household furniture and appliances
- One motor vehicle up to $6,500
- All medical and health aids for you and your family
- Farm equipment, fishing nets, or other tools of your trade up to $7,500
- No limit on grain and seeds or livestock for domestic use by you and your family
For more information on bankruptcy exemptions in Nova Scotia, contact a local a BDO trustee near you.
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Keep Your Assets / Rebuild Credit
You may be able to keep your car, house and other personal belongings when filing for Chapter 7 or Chapter 13 personal bankruptcy. When you work with Roemerman Law, we will help you retain your assets and show you what steps to take following your bankruptcy so that you can quickly get back on your feet. You may also begin to rebuild your credit immediately after.
Calculating Current Monthly Income And Median Income
Before you begin the Chapter 13 Means Test, you need copies of all pay stubs or pay advices for the past six months. You also need evidence of all other income for your household. Income that is included in CMI includes, but is not limited to:
- Wages, salaries, commissions, overtime, and bonuses
- Net income from the operation of a business
- Net income from rental properties
- Retirement and pension income
- Unemployment compensation
- State disability income
- Also contributions to household income from your spouse, other individuals in your home, or from outside sources
However, the only income not included in current monthly income is Social Security income and Social Security disability income and certain payments to crime victims. Most sources of income must be included in your household income.
CMI is calculated by dividing the total of all income during the six months before filing a bankruptcy case by six. Median income is your CMI multiplied by twelve.
Median income is important in a Chapter 13 bankruptcy in Idaho. As a result, if your median income exceeds the median income in Idaho for a household the same size as your household, your Chapter 13 plan is a 60-month repayment plan. So if your median income is below the state median income level, you may be able to file a 36-month bankruptcy repayment plan.
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- Ongoing charitable contributions
- As well as miscellaneous personal expenses
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Doesnt Filing For Bankruptcy Ruin My Reputation And My Life
Not if it gets you out of debt. You might be able to run from creditors for a while, but eventually the stress of that overwhelms people. Bankruptcy lets you stop running and start over again. It may take a few years for you to get loans and obtain credit again, but at least youll have that opportunity. Bankruptcy is meant to give people who made financial mistakes a second chance. In todays turbulent economy, that is a good thing.
When You Might Not Need To File For Bankruptcy
If You’re Judgment Proof
It youre truly broke, you may be what the law calls judgment proof. This simply means that creditors cant grab your property or your salary because theres nothing the law allows them to take.
You can check the exemption laws for Idaho to learn what property your states law protects. But keep in mind that exemption laws dont shield property from all types of debts or all types of creditors. For instance, exemption laws typically wont protect your property if you owe child support or back taxes. And if you bought property and pledged it as collateralcommon for car loans and mortgagesthe lender can take the property regardless of any exemption law.
If youre judgment proof, instead of filing for bankruptcy, your best option may be to ride out the hard times and do nothing for now.
If Your Creditors Are Willing to Negotiate Payment Plans or Settle Your Debts
Your creditors may be willing to set up reasonable payment plans or even to settle your debts for less than you owe. For obvious reasons, this can be a stressful processbut you may be able to get help from a nonprofit credit counselor or debt management agency. You can find a list of qualified agencies on the website of the United States Department of Justice.
If Bankruptcy Can’t Cancel Your Debts
There are some kinds of debts that bankruptcy simply cant erase. These are called “nondischargeable” debts. This generally includes child support, most student loans, and most tax debts.
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Vermont Bankruptcy Means Test
The Vermont means test for bankruptcy is the eligibility analysis that makes sure that only folks who truly cannot afford to pay even a portion of their debts are able to file a Chapter 7 bankruptcy in Vermont. The first part checks whether you exceed the income limits as determined by the median household income for a household of your size. However, even if you “fail” this part of the Vermont means test for bankruptcy you may still qualify to file a Chapter 7 if deducting certain pre-determined expenses from your income makes it clear that you do not have enough money remaining to pay at least a portion of your debts.
Data on Median income levels for Vermont
Vermont Median Income Standards for Means Test for Cases Filed On or After May 1,2021
How To File Bankruptcy Online Without A Lawyer
6:26Dont let attorney fees keep you from the fresh start you need. Learn how to file bankruptcy without a lawyer Jun 8, 2020 · Uploaded by Lets Talk Money! with Joseph Hogue, CFA
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Making The Decision: Should You File For Bankruptcy
Bankruptcy Self-Help Resources
For about $30, you can purchase one of Nolo’s books: How to File for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time. Either book will walk you through a self-analysis of your situation and explain your options in plain English. These books offer step-by-step discussions of Chapter 7 and Chapter 13 bankruptcy, including exempt property, keeping your home, and how to prepare and file your bankruptcy forms. They also alert you to situations that are particularly troublesome and should not be handled without an attorney.
This website supplements the information in Nolos bankruptcy books by providing quick access to bankruptcy services and information for your county.
Getting Professional Help
If you just need help with preparing the forms, you can hire a bankruptcy petition preparer. If you want legal advice and analysis of the details of your specific situation, you can hire a to advise you. You’ll find listings in the section of this site. These listings are not endorsements. They are simply designed to help you quickly connect with service providers in your area.
Whether you decide to do it yourself or hire professional help, our goal is to help you become a smarter, better-informed legal consumer and help you steer clear of shoddy services.
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