Bankruptcy Law

Who can file for bankruptcy in Idaho?

Who can file for bankruptcy in Idaho?

Federal bankruptcy law is written to permit everyone an opportunity to file bankruptcy.  There are no minimums in debt, no maximums of income, but there are a number of things to consider in Idaho.  Not everyone needs a bankruptcy.  It is a frequent occurrence that we do consultations with a number of people who really do not need to or should not file bankruptcy. The current bankruptcy code as mo ...[Read More]

What About a Deficiency Claim?

What About a Deficiency Claim?

I have written on how bankruptcy can stop and stall a foreclosure so that a person can keep their home in the face of losing it. However, sometimes a debtor does not know some of their rights before the foreclosure and then lose their home. Idaho does not give the right of redemption after the sale of property in a foreclosure. A person can cure default within 115 days of the Notice of Default rec ...[Read More]

Can Bankruptcy Stop a Foreclosure?

Can Bankruptcy Stop a Foreclosure?

The answer is a resounding yes. However, bankruptcy must be catered to your specific needs and will really only be available through a Chapter 13 Bankruptcy Plan. But this is a very powerful tool to help save your home from foreclosure and require the bank to work with you to get you back in control. A Chapter 13 is your best option to stop a mortgage foreclosure and force the bank to work with yo ...[Read More]

What is an Automatic Stay?

What is an Automatic Stay?

One of the powerful ways in which bankruptcy can help anyone, whether small or big, is the “automatic stay”. It is powerful medicine for curing almost all the initial problems that come with insolvency; namely, the harassing phone calls, the constant threats of creditors, and the potential to lose all your assets and property. Unfortunately, if a person falls behind on their payments, ...[Read More]

Am I Forced to Give Up My Tax Refund?

Am I Forced to Give Up My Tax Refund?

The season has mostly passed, but for future reference, I thought I better give some information about tax refunds and bankruptcy. Under bankruptcy law, all tax refunds owed to you are part of the bankruptcy. If you are entitled to receive a tax refund while the bankruptcy is open, then you are required to turn it over to the Trustee in bankruptcy. Usually the IRS and State of Idaho send your refu ...[Read More]

Am I Required to do Credit Counseling?

Am I Required to do Credit Counseling?

Before an individual can file bankruptcy, that person is required to complete a “credit counseling course”. If a is couple filing, both individuals are required to complete the course. The course must be completed within 180 days before the filing of the bankruptcy, any earlier and it has to be repeated. Several options are available including online, over the telephone, and in person. ...[Read More]

Do I Get to Keep Some of My Property?

Do I Get to Keep Some of My Property?

When an individual files for bankruptcy, especially a Chapter 7, there is a concern that the debtor will lose all their property. A debtor is allowed by law to retain certain property (called exemptions) under the bankruptcy code. Even more appealing is the fact that this property is able to remain free from liens and creditor claims. This only applies to unsecured creditors, meaning the property ...[Read More]

Do I Have to List All Property?

Do I Have to List All Property?

I received a question about a potential inheritance. This person knew that a Trustee could pull in property received after a bankruptcy, but asked how the Trustee would know. I thought I would present this post since I get asked similar questions all the time about why we have to list some thing in the bankruptcy paperwork. I am happy to answer your questions and work with you. Due to the nature o ...[Read More]

What About Divorce?

What About Divorce?

I regularly have questions about what happens in bankruptcy when part of the debts belong to an ex-spouse by a divorce decree and yet the creditor is still coming after this ex-spouse. Hopefully I can help flesh out the answers and variations in this post. Unfortunately, divorce is quite common. As part of the typical divorce decree, spouses are responsible 50-50 for a number of debts and other de ...[Read More]

What About Debt Consolidation?

What About Debt Consolidation?

We hear regularly that people are going to try debt reduction or consolidation before taking the last steps to bankruptcy. Even after visiting with them for a time, it becomes clear that reduction or consolidation services will be of little value. Here are some things to consider if you are looking at debt reduction versus bankruptcy. 1) Debt reduction, in our experience, rarely works unless the p ...[Read More]