Alaska Bankruptcy Laws
Alaska has one bankruptcy district: Alaska Bankruptcy Court with two Anchorage locations. This court serves the entire state of Alaska. Bankruptcy provides debtors with a fresh start because bankruptcy protects consumers against lawsuit from creditors. The protection starts after you've completed the mandatory credit counseling and filed your bankruptcy with the Court. Until that time, creditors can still attempt to collect credit card debt and other debts you owe, including mortgages. If you are going through an Alaska foreclosure, that foreclosure can still proceed until your case is filed with the Court.
Alaska Bankruptcy Exemptions
Exemptions refer to property you are allowed to keep under chapter 7 bankruptcy. According to Lawyers.com, under Alaska bankruptcy laws, you may generally keep:
- Principal residence to $67,500
- Books, musical instruments, clothing, family portraits, household goods and heirlooms to $3,750
- Jewelry to $1,250
- Building materials
- Burial Plot
- Health aids
- Motor vehicle to $3,750 in one motor vehicle worth not more than $25,000
- Personal injury recoveries
- Pets to $1,250
- Wrongful death recoveries
- Disability benefits
- Insurance proceeds for personal injury or wrongful death
- Life insurance proceeds
- Medical, surgical or hospital benefits
- ERISA-qualified benefits deposited more than 120 days before filing bankruptcy
- Pensions
- Public benefits, including AFDC, crime victims' compensation, workers' compensation and unemployment compensation
- Property of a business partnership
- Alimony and child support
- Implements, books and tools of the trade to $3,500
- Weekly net earnings to $438 or $668 if sole wage earner in a household
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
Part of New Bankruptcy Law Considered Unconstitutional
A federal judge partially blocked one element of the nation's recently overhauled bankruptcy law, saying that a provision restricting the advice lawyers can give is unconstitutional.
Organizations representing thousands of attorneys filed the lawsuit in 2006, objecting to a requirement that they give specific advice to bankruptcy clients, including not to go deeper into debt. U.S. District Court Judge Christopher Droney in Hartford ruled that the restriction was too broad because it prohibits attorneys from advising their clients to incur any debt, including debts that are legal and desirable in some cases.
"The ruling in several parts is very gratifying in that it upholds the constitutional rights of attorneys and their ability to represent their clients," said Barry Feigenbaum, attorney for the plaintiffs, who include the Connecticut Bar Association and the National Association of Consumer Bankruptcy Attorneys.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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