Trusted Nampa, ID Bankruptcy Lawyer FAQs
The most common forms of bankruptcy are:
- Chapter 7: Under Chapter 7, all of your nonexempt assets are liquidated to pay creditors, and in return you receive a complete discharge.
- Chapter 11: Designed primarily for corporate reorganization.
- Chapter 12: Reorganization-style bankruptcy designed for farmers and fishermen.
- Chapter 13: Reorganization bankruptcy designed for ordinary consumers. You can keep your property if you pay off your debts in three to five years.
- You are filing as an individual, not a business
- Credit counseling
- Sufficient income to pay off your debts in three to five years
- You must be current on your income tax filings
- You must not have had a bankruptcy petition dismissed or received a bankruptcy discharge recently
- Credit counseling
- You must lack the financial means to repay your debts
- You must not have received a bankruptcy discharge or had a bankruptcy petition dismissed too recently
- You must not have defrauded your creditors
- You must have eligible debts (since not all debts are dischargeable in bankruptcy).
It is rare for a Chapter 7 petition to be dismissed. Nevertheless, the bankruptcy court may convert your filing to a Chapter 13 filing (if you have the financial means to repay your debts, for example), and your automatic stay may be lifted. You may be prevented from re-filing for Chapter 7 for 180 days.
The court may simply dismiss your petition, or if it determines that you lack the ability to pay your debts, it may convert it to a Chapter 7 petition (even over your objections). If the court simply dismisses your petition, it will lift the automatic stay and perhaps prevent you from re-filing for bankruptcy for 180 days.
Bankruptcy exemptions define certain property that cannot be liquidated for the benefit of creditors even if you do file for bankruptcy. Although federal exemptions exist, Idaho has opted out of them and applies the Idaho bankruptcy exemptionsInstead. You can keep many basic items, including up to $100,000 in home equity.
No. Certain items cannot be discharged, such as:
- Some tax debts
- Most student loans debts
- Alimony and child support obligations
- Debts that arose after you filed for Chapter 7
- Court fees
- Fines and sanctions
- Restitution for DUI-related accidents
- Certain other debts
After you submit your bankruptcy petition, you will be ordered by the bankruptcy court to attend a creditor’s meeting. You should bring your lawyer with you. In many cases, no creditor bothers to attend. The court’s interim trustee, however, will ask you questions under oath that are designed to determine whether you are eligible for a discharge.
The Idaho means test is a financial analysis designed to determine whether your income is too high to qualify for Chapter 7 bankruptcy. If your income is below the Idaho median income for your household size, you will not have to take the means test.
You are required by federal law to undergo credit counseling before filing for Chapter 7 or Chapter 13 bankruptcy. Credit counseling is a briefing given by an approved non-profit credit counseling service. Fees may be waived or reduced if your income is low enough. You will need to submit a certificate of completion with your bankruptcy petition.
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Joe Frick Law, PLLC is a small law firm that will treat you like a person, not a case number. You can be sure that we will approach your case with an eye to crafting an individual solution that addresses your personal needs. You might be particularly concerned, for example, about exempting certain work tools, or you may be more concerned about preserving your credit than receiving a discharge.
Joe Frick is no amateur – he has received a “superb” rating by the prestigious Avvo legal rating service, putting him in the category of only a small percentage of the nation’s lawyers. If you are considering filing for bankruptcy in the Treasure Valley or even further afield, contact us online or call us at 208-401-9311 today so that we can schedule a free, obligation-free case consultation to evaluate your options.