New Hampshire Bankruptcy Laws
For those qualified for Chapter 7 bankruptcy, there are federal and state exemptions to protect necessary forms of property to make bankruptcy less destructive to individuals and their families and allow them sufficient assets to start fresh. In New Hampshire, only state exemptions apply, and those exemptions include:
Homestead |
Up to $100,000 |
Personal Property |
Clothing, furnishings, and furniture, up to $3,500; appliances; food and fuel up to $400; books up to $800; farm stock; church pew; motor vehicles up to $4,000; any other property up to $1,000; burial plot; up to $7,000 of unused portions of other allowances for any property |
Wages |
Wages that are earned but unpaid; payroll account deposits; 50 times the federal minimum hourly wage per week; jury and witness fees; wages of a minor child |
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; public employees; police; firefighters; federally created pensions; ERISA-qualified benefits |
Public Benefits |
Public assistance; aid to the blind, aged, and disabled; worker’s comp; unemployment |
Tools of the trade |
Up to $5,000; arms, uniforms, and equipment of military members; 1 yoke of oxen or a horse needed for farming or teaming |
Insurance |
Firefighters’ aid insurance; fraternal society benefits; homeowners’ insurance proceeds up to $5,000 |
Once a debtor and their attorney decide that bankruptcy is the right choice, the client must complete a credit-counseling course before filing. At that point, the bankruptcy trustee takes administrative charge of the process, including:
- Determining which, if any, assets should be liquidated to pay creditors.
- Calling a 341 meeting of the debtor, their lawyer, and the creditors. The client is required to attend and answer any questions from the trustee or creditors about their assets and financial circumstances under oath. Creditors are not required to attend, and may dispute the decisions of the trustee whether they attended the meeting or not.
- Determining if unsecured debts are eligible to be discharged.
Once these procedures are complete, the client must attend approved debt education course before their debts can be discharged.
For a Chapter 7 client, if all of their debts are discharged, they are free to start fresh. Those debts that remain generally include tax debts, alimony, child support and some student loans. In addition, if there are remaining secured debts, even if the debt has been legally discharged, the lien holder may still repossess or foreclose if the debtor fails to pay what is owed. Chapter 13 clients can begin their repayment plan, anticipating that all their debts will either be paid off or discharged in three to five years.
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