Bankruptcy Exemptions in Idaho

Chapter 7 allows for certain property to be kept exempt.  This may include real estate mortgages and secured loans when the state’s criteria is met.  State laws determine the value of property that can be claimed exempt.  Other assets are then sold in order to repay outstanding balances with creditors.  Some types of unsecured debt may be legally discharged, however common exceptions include child support, spousal support, income taxes, property taxes, student loans and fines and restitution imposed by a court. 

There is no minimum debt requirement in order to file chapter 7 bankruptcy, however individuals may not file a petition if they have done so in the past 180 days.

Although federal law governs the bankruptcy procedures, state laws will determine property rights and exemptions.  In some states, there are federal exemptions available that may not be used under state exemptions, however, federal bankruptcy exemptions are not available in Idaho.

How to Keep Your Car

You may be able to keep your automobile beyond the bankruptcy process if you have equity in the vehicle.

• Up to $5000 in vehicle equity is exempt in Idaho
• Because this is a secured debt, the payments will still need to be made in order to retain the vehicle

How to Keep Your Home

Some individuals file bankruptcy in an effort to prevent their home from going into foreclosure.  This is not always preventable.  It generally relates to the amount of equity in the home and whether or not it falls within the exemption amount.

• Up to $100,000 in home equity is exempt in Idaho
• If you are able to pay the difference between the equity and the total exemption amount from sources other than the bankruptcy estate, there may be a chance you can keep your home
• If the property is not yet occupied, individuals must file a homestead declaration

If there is a substantial amount of equity in your home, it may be worth researching other options when considering bankruptcy.

Filing Schedule C of a Bankruptcy Petition

A Schedule C, which lists the property you are claiming to be exempt, is required when you file bankruptcy.  This must be completed in order for the exemptions to be considered by the bankruptcy courts.  Information needed to complete this form includes:

• All exemptions you are claiming
• The laws pertaining to the property listed to be exempt
• The value of the claimed exemption
• The value of the property without deducting exemption. 

Why Hire a Bankruptcy Lawyer

Because there are a number of variables relating to the types of bankruptcy available, the types and amounts of exemptions and a myriad of paperwork and court proceedings involved, it is important to discuss your individual circumstances with a bankruptcy attorney.  An Idaho bankruptcy attorney will have the expertise necessary to assist you through the decision and filing process relating to bankruptcy.