An Introduction to Idaho State Bankruptcy Law
Before Filing for Bankruptcy
Though it is required that all businesses contact legal representation while filing for Idaho state bankruptcy, individuals filing personal bankruptcy may do so on their own. However, most experts recommend against this given the complexities of Idaho bankruptcy law.
All private individuals are required to attend credit counseling no earlier than 180 days before filing for Maryland bankruptcy. For a list of approved credit counselors who can tell you if a more advantageous financial solution exists for you then bankruptcy, look at the Justice Department website here.
Filing for Bankruptcy
Four distinct court locations exist for the United States Bankruptcy Court of the District of Idaho: Boise, Coeur d’Alene, Moscow and Pocatello. Some may also be able to file by mail. All the forms that will be required of you can be found at this site: http://www.id.uscourts.gov/forms-bk.htm, but keep in mind that which you need depends on what kind of bankruptcy you will be filing for. Also dependent on this information is the fee you will pay to petition the court for bankruptcy. The amounts are $306 for Chapter 7, $1046 for Chapter 11, or $281 for Chapter 13.
Idaho Corporate Bankruptcy
Here are some methods available for businesses filing for bankruptcy:
• Chapter 7 Bankruptcy: Businesses that no longer appear to be profitable should consider this more drastic Idaho bankruptcy option. In practical terms, it ends the business, with its assets liquidated according to a court order so that creditors are paid back.
• Chapter 11 Bankruptcy: Businesses facing severe short-term financial difficulties but whose long-term prospects seem less bleak than those filing for Chapter 7 bankruptcy should consider Idaho Bankruptcy Chapter 11. It gives the debtor certain rights as a “debtor-in-possession” of all of their assets while a plan to restructure the business and pay back creditors is devised.
Personal Idaho Bankruptcy
There are several ways that individuals may file for bankruptcy:
• Chapter 7 Bankruptcy: Again, this form of Idaho bankruptcy mandates the liquidation of assets by the filer. It’s great for persons with large credit card bills, but eligibility is limited to those earning below the Idaho mean income and certain others according to the Idaho Means Test.
• Chapter 13 Bankruptcy: This should be the go-to option for individuals whose incomes mean that they cannot file for Idaho bankruptcy under Chapter 7. Chapter 13 protects assets while a plan is worked out guaranteeing that debts be paid over three to five years from the filer’s income.
• Chapter 12 Bankruptcy: This is a rare type of Idaho bankruptcy that should only be looked into further by those who run family farms.
• Chapter 11 Bankruptcy: Again, a rare option under the category of personal Idaho bankruptcy, it is intended for only individuals with very large assets.
You can file for bankruptcy in a United States Bankruptcy Court located in Idaho, but before you do, you should recognize that there is one important thing Idaho bankruptcy can’t do, which is help to solve most problems involving tax debt. Tax debt is not dissolvable according to most bankruptcy laws and must be paid in full, so if you suffer primarily from tax debt, then Idaho bankruptcy may not be a great aid for your case.