Idaho Bankruptcy Laws

Idaho has one bankruptcy court district: Idaho Bankruptcy Court. It serves the entire state of Idaho. Bankruptcy provides a fresh start for debtors because bankruptcy protects consumers against lawsuit from creditors. However, that protection doesn't start until you've completed your mandatory credit counseling and filed your case with the Court. Until then, creditors can still attempt to collect on your credit card debt and other debts you owe, including your mortgage.

Idaho Bankruptcy Exemptions
Individual debtors are entitled to keep certain assets free from the claims of creditors, under federal or state exemption laws. According to Lawyers.com, under Idaho bankruptcy laws, you may keep:

• Homestead to $50,000.
• Household furnishings, household goods, household appliances, clothing, books, musical instruments, family portraits and heirlooms, limit $500 per item and $5,000 total.
• Jewelry to $1,000.
• Tools of the trade and professional books to $1,500.
• One motor vehicle to $3,000.
• 75% of disposable earnings.
• Burial plot for you and your family.
• Health Aids.
• Federal social security or veterans benefits.
• Public assistance benefits.
• Medical, surgical or hospital care benefits.
• Unemployment compensation.
• Disability of illness benefits.
• Alimony, support or maintenance.
• Personal injury or wrongful death claims.
• Arms, uniforms and accouterments required for peace officer, member of national guard or military service.
• One firearm, if less than $500.
• Water right not to exceed 160 inches of water used for irrigation of lands cultivated by you and crops growing on 50 acres of land up to $1,000.
• Unmatured life insurance contract.
• Interest in tangible personal property to $800.
• Life insurance.
• Group insurance.
• Construction materials.
• Qualified pension or profit-sharing plan.
• Workers' compensation benefits.
• Crime victims' compensation.
• Annuity contract proceeds to $1,250 per month.

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

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.