Your bankruptcy filing is going to take place in federal court since bankruptcy falls under the jurisdiction of federal law in all states across America. However, Idaho law will still play a role at certain points along the way. For example, it might determine which assets are protected from a liquidation sale and what the maximum dollar value of those assets can be.

In this video, attorney Robert Todd discusses the ins and outs of filing for bankruptcy. He goes over exactly what situations warrant bankruptcy, in addition to the importance of representing all of your assets and obligations in a fully truthful manner. If you are found to have misrepresented your situation at any point in the bankruptcy proceedings, your discharge may not happen at all.

Chapter 7 bankruptcy is a legal process in the USA created to free a person facing financial struggles from their unsecured debt obligations. However, Chapter 7 does not eliminate all secured debt that is backed by collateral like car payments or mortgages, or secured lines of credit. This type of bankruptcy, since it's less complex than a Chapter 13 restructuring, is sometimes called a liquidation bankruptcy or straight bankruptcy. Some people may be unnerved by the thought of filing for chapter 7 due to what they've read or been told about asset liquidation, but asset sales can be completely avoided in a variety of cases if you are able to pass the means test as covered in Step 2 below. Don't forget that even if a Chapter 7 bankruptcy turns out not to be what you're looking for, it's still worth considering a Chapter 13 restructuring instead.

In order to pass the standard means test so you'll be eligible to declare Chapter 7 bankruptcy, you need to prove that your household income or salary is at or below the state median in Idaho. Though this median is measured by the Census Bureau, it does vary depending on the size of your family. The following maximum incomes apply for cases filed after March 15, 2009http://research.lawyers.com/Idaho/Bankruptcy-in-Idaho.html:

1. Single individual: $40,910
2. Two person family: $51,946
3. Three person family: $54,633
4. Four person family: $66,939
5. Five+ person family: $66,939 plus $6,900 for each extra individual over four

In order to declare bankruptcy in Idaho, one of the first things you'll need to do is sit down with a bankruptcy lawyer and talk about what you have a right to claim in terms of exemptions. As long as you have verified that you are able to declare chapter 7 bankruptcy under the means test detailed above, a bankruptcy attorney will be able to formulate a solid strategy that will allow you to keep as many of your assets as possible. Here are a just a few of the exemptions allowed in Idaho in 2009/2010:http://research.lawyers.com/Idaho/Bankruptcy-in-Idaho.html

1. Homestead to $100,000
2. Tools of the trade and professional books to $1,500
3. Jewelry to $1,000
4. One firearm, if less than $500
5. One motor vehicle to $5,000
6. Interest in tangible personal property to $800
7. Household furnishings, household goods, household appliances, clothing, books, musical instruments, family portraits and heirlooms, limit $500 per item and $5,000 total
8. Annuity contract proceeds to $1,250 per month
9. 75% of disposable earnings
10. Burial plot for you and your family