Bankruptcy in Idaho is a legal process through which some of the debts of an individual or a business are absolved (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult procedure. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Idaho bankruptcy Lawyer can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your individual case.
Types of Bankruptcy in Idaho
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Idaho will be the same as everywhere else in the United States. There are 2 basic forms of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy typically used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
Chapter 7 bankruptcy in Idaho is sometimes called "liquidation" because it involves the forced sale of some (though certainly not all) of the debtor's assets. The bankruptcy court will appoint a trustee to oversee the appraisal and sale of some of the debtor's property, and the proceeds from the sale will go to the creditors, in their order of priority. Certain forms of property are exempt, and do not need to be sold, including houses and insurance policies. Once the property is sold, and the proceeds given to the creditors, the rest of the debt is excused. Under Chapter 13 bankruptcy, debt is typically not excused; instead, it is reorganized. The court will craft a long-term payment plan that allows the debtor to pay off his or her debts in single payments, over time. This usually gives the debtor some breathing room that would not exist if all of his or her debts became due and payable at once.
Usually, it is businesses as opposed to individuals that avail themselves of Chapter 11 bankruptcy protection. Similar to Chapter 13, it entails reorganization of debt, rather than discharge. The debtor has to come up with a plan to reorganize its debts, and this plan must then be approved by a vote of the participating creditors. Once the plan is approved, the debtor has to carry it out.
How Can a Idaho Bankruptcy Lawyer Help?
Making the decision to file for bankruptcy can be extremely difficult, given the potential consequences. An Idaho Lawyer specializing in bankruptcy can advise you of the likely consequences you will face if you file, and help you determine if they are outweighed by the potential benefits.
Interesting Facts About Idaho
Idaho is located in the Rocky Mountain region of the U.S. Idaho's nickname is "The Gem" state, as nearly every type of gemstone can be found there. It is also called "The Potato" state, in reference to the state's most famous crop (Idaho produces about 1/3 of the nation's potatoes).
Idaho state laws are codified and compiled into the Idaho Code. These laws, as well as the Idaho State constitution, address nearly every aspect of Idaho life. Legal violations and lawsuits are resolved in Idaho's state court system, which consists of the state Supreme Court, the Idaho Court of Appeals, and the District Courts. Supreme Court decisions are binding on all other Idaho courts.
Idaho is one of the few states to operate a Drug Court system, as well as a Mental Health Court system. The drug court movement is relatively new in the U.S. It offers drug offenders alternative, court-monitored treatment programs as opposed to the standard judicial procedures. Idaho's Drug Court system helps to address the problem of court docket overload, thus freeing up state judicial resources.
Idaho lawyers provide legal services and assistance in a variety of legal topics. Most lawyers in Idaho file their claims at the District Court level, though more complex claims can be heard higher up in the court system. Attorneys in Idaho have experience in handling the types of legal claims that are specific to the region.