Submit A Chapter 13 Repayment Plan
If you are filing for Chapter 13 bankruptcy, a repayment plan must also be submitted for approval. While Chapter 7 bankruptcy involves liquidating your assets to satisfy creditors, Chapter 13 involves a reorganization of your finances to repay creditors over a period of three to five years.
This repayment plan must satisfy the following requirements:
- It must be created in good faith.
- Unsecured creditors must be paid at least as much as they would have been paid if you would have filed for Chapter 7 bankruptcy.
- All of your disposable income must be paid into the plan for at least three years.
If approved, these payments must be made in full and on time throughout the duration of your payment plan. In many cases, payments can be automatically deducted from your wages. Your lawyer can help you establish an acceptable payment arrangement with the courts.
How To File For Chapter 7 Bankruptcy
If bankruptcy sounds like it may be the right solution for you, learn more about the process in How to File for Bankruptcy in Idaho Falls, Idaho.
Or you may want to jump right into a more in-depth resource like Nolos book, How to File for Chapter 7 Bankruptcy, which walks you through the process step-by-step, including how to fill out and file your bankruptcy forms.
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Idaho Credit Counseling And Debtor Education Agencies
Pursuant to the new bankruptcy laws enacted in 2005, individuals who file personal bankruptcy in Idaho must:
1. take a credit counseling course from an approved Idaho credit counseling provider within six months before filing bankruptcy and
2. complete a debtor education course from an approved Idaho debtor education agency prior to receiving a bankruptcy discharge.
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How Do I Find Out If My Bankruptcy Case Is Closed In Idaho
A bankruptcy case is closed when the debtor has taken all actions to alleviate debts. Parties can easily access information about the status of an issue online, in person, or by phone. PACER offers online access overviews of bankruptcy cases. Parties can also visit the court clerk’s office and use the public terminals on the Pocatello, Coeur d’Alene, and Boise locations. Parties can utilize the automated Voice Case Information System for telephone options by calling 222-8029. The clerk of court can also provide basic case information by phone.
Filing Motions & Responding To Creditor Objections
$0 to $200
Depending on your circumstances these are two things you may or may not need to do.
Filing motions with the court. If creditors’ have placed claims on your property you may be able to have them removed by filing some extra paperwork.
Responding to objections. Your creditors or the bankruptcy trustee will have a certain number of days to object to statements on your forms. You may respond before the court has a hearing on the matter. Depending on the objection you may need to hire a lawyer to respond effectively.
Tip: If you are hiring an online service to prepare your bankruptcy papers, be sure to ask whether the standard fee includes filing motions for lien avoidance, or responding to the trustee’s or a creditor’s objection.
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When Should I File For Bankruptcy
Many people think of bankruptcy as a last resort, but for people with large amounts of high-interest debt, filing for bankruptcy can provide much needed relief. Bankruptcy may be a viable and desirable option for people facing:
- Home foreclosure
- Lost income due to wage garnishment
- Inability to pay monthly bills
At Foley Freeman, we will make sure that you understand your options under bankruptcy law and help you map the best route toward debt relief and financial recovery.
Will Filing For Bankruptcy Ruin My Credit
Your credit will be affected if you decide to file for bankruptcy. However, bankruptcy can be an effective way to regain control of your finances, and many debtors find that their credit scores begin to improve not long after they file for bankruptcy. It is important to note that most types of bankruptcy will stay on your credit report for a period of up to seven to ten years. In some cases, the time period can be reduced.
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What Is A 341 Hearing
Everyone who files for bankruptcy must attend a 341 hearing, which is also called a “creditors meeting.” The meeting is conducted by the bankruptcy trustee assigned to your case. The trustee will put you under oath and may ask you questions about the information you’ve provided on your bankruptcy forms. Creditors may also show up at the hearing to ask you questions, but it’s not common for them to do so.
Bankruptcy law also requires the trustee to ask you questions to be sure you understand how bankruptcy works and the potential consequences of filing bankruptcy, such as the effect on your credit record.
For most bankruptcy filers, this will be your only trip to the courthouse . Most court websites post schedules of 341 hearings, and when you file, you will be notified of your hearing date. When you show up for your hearing, you will find that many other people have hearings set for the same day. You will sit and wait for your name to be called–usually in a room somewhere in the courthouse or federal building, but probably not in a courtroom.
What Does The Trustee Do In A Chapter 7 Case
Bankruptcy Code § 323 states that the trustee is the representative of the “bankruptcy estate”, with the capacity to sue and be sued.
The trustee’s duties and obligations are defined by the Bankruptcy Code imposes upon a trustee:
- Section 704 defines the statutory duties of the trustee in a Chapter 7 bankruptcy case and, under § 704, the primary duty of the trustee is to “reduce to money the property of the estate for which such trustee serves” that is: to “liquidate” the assets and distribute the proceeds to your creditors. bankruptcy is different than it is in a Chapter 13 bankruptcy.
- Other relevant duties include insuring that the debtor performs his or her intention as specified in § 521 ,
- investigate the financial affairs of the debtor ,
- and “if advisable, oppose the discharge of the debtor.”
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How Much Does Bankruptcy Cost In Idaho
The costs of filing for bankruptcy are the same nationwide: $338 for Chapter 7 and $313 for Chapter 13. Those fees are the same regardless of whether you file on your own or using an attorney. However, if you cannot afford to pay the entire fee when you file you can ask to make installments over 120 days. Additionally, if you earn less than 150% of the poverty line you can ask the judge to waive your fee.
If you choose to file using an attorney the fee you are charged can vary greatly depending on where you are located in Idaho. For example, the typical cost of a straightforward Chapter 7 case can vary from $800 to $1,500. An attorney will generally charge more for a Chapter 13 case and your legal fees can easily top $5,000 if your case is complicated.
Idaho Bankruptcy Filing Process
The bankruptcy filing process in Idaho is similar to other states. Generally, the process is as follows for Chapter 7 bankruptcy:
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Who Files For Bankruptcy
The typical bankruptcy filer is a person already in fragile economic circumstances, often with large amounts of credit card debt, who then suddenly gets hit by hard lucklike job loss, injury, divorce, or uninsured medical expensesleading to unmanageable payments and insurmountable penalties.
Bankruptcy is designed to help people like this, who need help making a clean breakto get a fresh start on life, rather than struggling under the crushing burden of unpayable debt.
Local Bankruptcy Lawyers Explain Your Options And Exemptions
In most cases, all it takes is one catastrophic event or one turn of bad luck to take you from financially stable to drowning in unmanageable debt. Perhaps you suffered an injury or illness that left you with crushing medical debts. Maybe you lost your job or made an investment that failed to pay off. Whatever the reason, if you are struggling with overwhelming debt, then filing for bankruptcy may be a viable option to help you reclaim control of your finances. Despite the stigma sometimes associated with bankruptcy, this process can help you end creditor harassment, save your house from foreclosure and discharge certain debts that you cannot repay. The details of the process will depend on your circumstances when you decide whether to file for bankruptcy. However, the end goal is still the same: eliminate your debts and give yourself a fresh start financially.
There are two main types of consumer bankruptcy: Chapter 7 and Chapter 13. Although either can relieve you of unwanted debts, they work very differently. An experienced Idaho bankruptcy lawyer can offer you advice on which choice is best for your unique situation, and may be able to offer you bankruptcy alternatives as well. Below, local attorneys explain the basics of both types of bankruptcy and list the exemptions you may be able to use in your case.
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Save Your Home & Eliminate Negative Equity
If you owe more on your home or car than its current value , we can help you eliminate the negative equity! Chapter 13 bankruptcy provides significant tools to deal with property that is upside down. Our experienced chapter 13 bankruptcy lawyers can evaluate your situation and determine if you qualify, so schedule a free evaluation today!
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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Which Type Of Bankruptcy Is Available To You
A mathematical formulacalled the means testestablishes the kind of bankruptcy you qualify for. of the bankruptcy code.) The means test considers:
- how your monthly income compares to the Idaho median income
- the amount and types of your debts, and
- other aspects of your financial situation.
If your annual income is less than the Idaho median income for your household size, then you can choose whether to file for Chapter 7 or Chapter 13, assuming you meet other qualifications. On the other hand, if your income is higher than the state median, you must first calculate your expense deductions to estimate your disposable income for the next five years. The result of this calculation determines whether you can file for Chapter 7 bankruptcy or are left with Chapter 13 as your only option.
Qualifying For Chapter 7 Bankruptcy
In recent years, the federal government has tightened the eligibility requirements for filing Chapter 7 bankruptcy. Under the Bankruptcy Abuse Prevention and Consumer Protect Act , applicants must first take ameans test to determine whether or not they qualify for Chapter 7. The means test will evaluate your financial information and compare your current monthly income to the median monthly income of the state of Idaho.
If you meet certain qualifying criteria, especially if your current monthly income is less than the median income, then you may be eligible to file under Chapter 7. If your monthly income is greater than the median income, you will have to complete additional steps of the means test to determine if you are eligible for Chapter 7, or if you must file under Chapter 13. An Idaho bankruptcy attorney from our firm can fully analyze your case to help you determine if you meet the criteria established by the means test.
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Estimate Whether You Will Lose Any Property
As you can imagine, many people want to keep their home, car, cash, etc. when filing bankruptcy.
You need to understand the bankruptcy exemptions in Idaho. The bankruptcy exemptions are complex because some states allow you to choose between state and federal exemptions when filing bankruptcy. For example, check out the Idaho homestead exemption.
As such, we created this Idaho bankruptcy exemptions calculator to simplify the information. This free calculator helps you estimate whether your belongings are at risk when filing bankruptcy in Idaho.
What Happens If You File In The Wrong Place
If you file your papers in the wrong bankruptcy court, it may delay your case. The bankruptcy trustee will probably bring the matter to the attention of the bankruptcy court judge. If the judge then finds that the trustee could more easily handle your case in another location, the judge may transfer or even dismiss your case. Because of these potential hassles, if you have any questions about the best place to file, it would be wise to before you submit your papers to a court.
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How Much Does It Cost To File For Bankruptcy In Idaho
In 2021, Chapter 7 bankruptcy costs $338 in filing fees, unless you get a fee waiver from the court. And the filing fees for Chapter 13 are $313. But the cost of filing for bankruptcy is more than just the filing fee. You may also have to pay for:
When all is said and done, your bankruptcy case could cost you as much as $2,500 and as little as nothing at all. The total cost will depend on:
- whether you qualify for fee waivers
- whether you qualify for free legal aid services
- whether you handle the form preparation and filing yourself or pay someone to help you, and
- how complicated your financial situation isfor example, whether you’re facing imminent foreclosure, whether your debts involve child support or back taxes, and whether you have valuable assets that are not fully protected by an exemption.
Heres an overview of some of the costs that may come up during bankruptcy.
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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Bankruptcy Exemptions Under Chapter 13
Bankruptcy exemptions work differently in Chapter 13 bankruptcy than they do in Chapter 7. In Chapter 7, the bankruptcy trustee appointed to your case will sell your non-exempt property to pay your creditors. Under Chapter 13, the trustee wont sell your non-exempt propertybut the value of that property will be used to determine how much you must pay your creditors under your repayment plan. Either way, your creditors get the value of your non-exempt property.
Bankruptcy exemptions may include at least some of the equity in your home, your car, and personal property such as your clothes and household goods. Exemptions are determined by state law some states have their own exemptions, while others allow you to use the exemptions provided by the federal bankruptcy code.
For more information on Idaho law, see the Exemptions section of this website.