There are four types of bankruptcies a petitioner may file for in Idaho: Chapter 7, Chapter 11, Chapter 12 and Chapter 13. According to the 2005 Bankruptcy Act, all debtors must adhere to federal bankruptcy regulations, but can file in district courts in their state. Idaho has 5 locations for bankruptcy filing and hearings.
The first type of bankruptcy is Chapter 7, or straight bankruptcy. Chapter 7 uses the non-exempt assets of a debtor to repay a portion of his or her debt. Typically those who petition for Chapter 7 have fewer assets and a lower income, but may eliminate nearly all of their unsecured debt to creditors such as credit card companies and medical bills. Non-dischargeable debt like back taxes, student loans and child support will still remain the responsibility of the debtor.
Chapter 13 is a reorganization code of bankruptcy. A petitioner may have to give the court fewer of their assets to repay debt, and can often keep their house or car. A summary of repayment is made in the case of Chapter 13 and a petitioner is typically given 3 to 5 years to eliminate their debt.
Chapter 11 is also a restructuring of debts, except for a business. This code allows a business to file for bankruptcy relief while still in operation.
The code designed for family farmers and fisherman is known as Chapter 12 and can help these particular businesses to reorganize their debt, protect their assets and stay afloat during a 3 to 5 year repayment period.
The cost for filing Chapter 7 bankruptcy is $306 and Chapter 13 is $281. Some cases allow for the $306 to be waived, but all petitioners for Chapter 13 must pay their fees. It is also required for Chapter 13 filers to submit a repayment plan along with their documents and forms for court approval.
The 2005 Bankruptcy Act requires all petitioners to receive credit counseling within approximately 6 months before filing for bankruptcy. If the debtor determines that bankruptcy relief is the best course of action there are multiple steps in the process from start to completion.
There are 5 District Courts of Idaho that can process bankruptcy filings and hearings. They are located in Boise, Coeur d'Alene, Jerome, Moscow and Pocatello. To contact the bankruptcy clerk for the state, call 208-334-1074.