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Idaho Bankruptcy Laws
Chapter 7 may require some debtors to liquidate some property; however, it also allows them to claim either federal or state exemptions that may apply. In Idaho, state law requires clients apply only state exemptions, which include:
Homestead
Up to $100,000
Personal Property
Health aids; burial plots; recoveries for personal injury and wrongful death required for support; college savings accounts; motor vehicle up to $5,000; clothing; furnishings; heirlooms; and miscellaneous items up to $500/ea. and $5,000 total; additional property up to $800
Wages
A minimum of 75% of wages earned but unpaid or 30 times the hourly federal minimum wage, whichever is greater
Pensions
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; retirement plans; government and private pensions; police; ERISA-qualified benefits; public employees; firefighters
Public Benefits
Unemployment; Social Security; veterans’ benefits; federal, state, and local public assistance
Tools of the Trade
Up to $1,500 in tools, books, and implements of trade; arms, uniforms, and necessary accoutrements for peace officers, National Guard members, or military
Insurance
Medical or hospital care benefits; medical savings accounts; life insurance proceeds; death and disability benefits; group life insurance benefits
The bankruptcy petition should only be filed after the debtor and their attorney have considered and chosen their options carefully and planned well, and after the debtor has completed their required credit counseling. Once filed, the petition is in the hands of the bankruptcy trustee, who guides the client through the process. The 341 hearing allows the trustee and creditors to clarify the bankruptcy plan and have their questions answered before the debts of a Chapter 7 client are discharged or the repayment plan of a Chapter 13 client is approved.
