Bankruptcy is a federal process that involves a debtor declaring they are unable to pay back creditors what they owe. It can be filed by both consumers and businesses and can severely diminish or even wipe out all unsecured debt completely.
If you are sick of skyrocketing bills that just keep piling up, let us help you find an experienced bankruptcy lawyer who will help you obtain debt relief quickly and successfully.
Idaho Bankruptcy Facts
Bankruptcy is a tool used by both individuals and businesses to lower or eliminate their debt in Idaho. It originally began as a process used by creditors to obtain what was owed to them from debtors, but as time has passed, bankruptcy protection has become a process many debtors seek voluntarily when bills just don’t seem to get any lower.
If you have amassed debt from unpaid credit cards, business expenses, mortgage payments, medical costs, or even lawsuits, bankruptcy can help cut those debts so you can either start paying them off without nagging creditors on your back or get rid of them completely. The process is not all that complicated, but understanding what each chapter of the Bankruptcy Code can do is. For this reason, it is always wise to consult with a skilled Idaho bankruptcy lawyer to ensure that every aspect of the case runs smoothly and so no errors in filing are committed.
What an Idaho Bankruptcy Attorney Can Do For You
There are six bankruptcy chapters that can be filed in Idaho, each resulting in completely different outcomes. The problem many debtors have is determining which option is best for their individual financial needs. Bankruptcy lawyers in Idaho know the ins-and-outs of the Bankruptcy Code and will review your income, expenditures and assets in order to help you choose the best course of action.
Although debtors may qualify for more than one chapter, it is usually Chapter 7 or Chapter 13 that is filed in Idaho. Chapter 7, known as “liquidation bankruptcy,” is the most commonly filed petition. Both consumers and businesses may qualify, and if so, debt may be completely eliminated in exchange for the liquidation of the debtor’s assets in as little as three months.
Many Idaho debtors find this petition to be the most convenient because they won’t have to worry about paying creditors back ever again. However, not everyone likes the idea of having to forsake their valuables. It is important to note that there are exceptions when it comes to what a creditor can and cannot seize, which an Idaho bankruptcy attorney can discuss with you.
Chapter 13 bankruptcy, on the other hand, does not call for the liquidation of any assets, but at the same time, doesn’t fully eliminate debt in the way Chapter 7 does. This chapter is known as reorganization bankruptcy and involves placing the debtor on a payment plan to eliminate debt. Sometimes a large amount of debt is reduced, giving petitioners a much better chance at repaying creditors. However, debtors do not emerge from Chapter 13 bankruptcy protection as quickly as with liquidation bankruptcy. Proceedings usually take between three to five months to finalize.
If by now you are feeling a little overwhelmed about filing for bankruptcy, don’t worry, you are not alone. The entire process can be challenging if you don’t know all the nitty gritty details about Idaho bankruptcy law, but when you have an experienced attorney on your side, you can rest assured the best option for your debt relief will be chosen.
Contact one of our featured Idaho bankruptcy attorneys today to get started on your case and tackle your financial obstacles.