Idaho Falls Bankruptcy Attorneys

We use the tool of bankruptcy law to fight for your financial freedom

Bankruptcy Representation in Idaho and Montana

Are you struggling with debt? Is your business no longer able to manage its obligations? Bankruptcy is a powerful tool that can be used to level the playing field, giving individuals and companies alike the chance to restructure their debts and get a fresh start. 

At Freedom Law, we provide no-judgment representation to individuals and businesses who are facing overwhelming financial difficulties. Our Idaho Falls bankruptcy lawyers have over 15 years of experience and routinely assist with Chapter 7, Chapter 11, and Chapter 13 filings. When you come to our firm, we will analyze your situation, determine which type of bankruptcy is right for you, and review what it can accomplish. 

We recognize you are likely dealing with an exceptional amount of stress, but we are confident we can provide the compassionate guidance you need to stop adverse collection actions, eliminate debt, and restructure your finances. Our team understands how to make the most of bankruptcy relief and will leverage our knowledge to get you the clean slate you deserve.

Call (208) 271-4403 or contact us online to request a complimentary initial bankruptcy consultation. We also offer flexible payment options. Se habla español.

Bankruptcy for Individuals in Idaho and Montana

If you are an individual, you will most likely file for Chapter 7 or Chapter 13 relief. Most people will only qualify for one of these types of bankruptcy. Completing a Means Test will help determine your eligibility.

Understanding the Benefits of Bankruptcy Beyond Debt Relief

Filing for bankruptcy is often viewed solely as a means to eliminate debt, but it can also provide a fresh start and a pathway to financial stability. At Tolson & Wayment Freedom Law, we believe it's essential for our clients to grasp the broader implications of bankruptcy and how it can positively impact their lives.

Here are some key advantages of filing for bankruptcy that you may not have considered:

• Immediate Relief from Creditor Harassment: Once you file for bankruptcy, an automatic stay goes into effect, halting all collection efforts and providing you with the peace of mind to regroup financially.
• Rebuild Your Credit: Contrary to popular belief, bankruptcy can be a stepping stone to rebuilding your credit. By eliminating overwhelming debt, you can start fresh and work towards improving your credit score.
• Asset Protection: Bankruptcy laws are designed to protect certain assets from creditors, allowing you to keep essential items like your home, car, and personal belongings.
• Structured Repayment Plans: With Chapter 13 bankruptcy, you can create a manageable repayment plan based on your income, allowing you to pay off debts over time while keeping your assets.
• Financial Education: Many bankruptcy processes include mandatory credit counseling, equipping you with valuable knowledge and tools to manage your finances more effectively in the future.

Chapter 7 Bankruptcy Means Test

First, look at your state’s median average income for your household size. If your current income is less than this number, you “pass” the Means Test and are automatically eligible for Chapter 7 bankruptcy. If your income exceeds this amount, you must go through an additional step. To find out your disposable income, subtract qualifying monthly living expenses, secured debt payments (such as car loan payments or mortgage payments), and priority debt payments from your total monthly income. If the resulting number is small or close to zero, you may still be able to file for Chapter 7. If you have a great amount of disposable income, however, you will need to file for Chapter 13.

Automatic Stays

When you file for Chapter 7 or Chapter 13 bankruptcy, you will trigger the automatic stay. This court order halts all collection actions, meaning you can use bankruptcy to stop a pending foreclosure, vehicle repossession, collection lawsuit, or wage garnishment. In many situations, these collection actions cannot proceed until your case concludes. 

Not sure if bankruptcy is the best path forward? Contact us online or call (208) 271-4403 to discuss your circumstances with a bankruptcy lawyer near you at Freedom Law.

Chapter 7

Chapter 7 bankruptcy involves liquidation, meaning your non-exempt property will be sold to partially compensate creditors. Liquidation is not as frightening as it seems, as both Idaho and Montana allow you to “exempt” many types of essential property. Many Chapter 7 filers lose nothing, and we will help you make the most of available exemptions. Chapter 7 is a relatively quick process and can often wrap up within several months. 

Chapter 13 Bankruptcy

Chapter 13 bankruptcy primarily consists of a repayment plan. For three to five years, you will need to make a single monthly payment that works to address all of your debts. You will not be asked to pay more than you can afford, as the monthly payment amount is tied to your current disposable income. Certain types of debt are also prioritized in Chapter 13. Tax debt and secured debt, for example, will be addressed before unsecured debt. This is a good thing, as you cannot use bankruptcy to discharge tax debt or secured debt. 

What Happens After Filing for Bankruptcy?

Upon finishing Chapter 7’s liquidation process or completing your Chapter 13 plan payments, you will typically be allowed to eliminate any remaining unsecured debts. Your credit card debt, medical bills, and personal loans will be wiped out.

Our Idaho Falls bankruptcy attorneys are committed to helping individuals overcome seemingly insurmountable financial problems. We understand how to effectively navigate Chapter 7 and Chapter 13 filings and will advocate for you every step of the way. 

Bankruptcy for Businesses in Idaho and Montana

If your business is struggling and its creditors are threatening to take action, it may be time to consider Chapter 11 bankruptcy. Though Chapter 7 bankruptcy is generally available to companies, you will want to pursue a Chapter 11 filing if you wish to keep your business open. 

When you file for Chapter 11 bankruptcy, collection actions stop, but you continue to retain control of the business and its operations. The goal of the process is to create and implement a reorganization plan that allows the company to stay open and succeed. 

Keep in mind that you will not have complete control of the business, as you will need court permission to:

• Expand or end operations
• Enter new contracts or end existing ones, including leases
• Sell assets that would not ordinarily be sold in the course of doing business
• Borrow money

Once your business has filed for bankruptcy, you will need to prepare a disclosure statement, which will consist of a detailed accounting of the company’s current financial circumstances. The court and the business’s creditors will rely on the disclosure statement to determine whether the proposed restructuring is feasible.

Following the submittal of the disclosure statement, you will have several months to propose a reorganization plan. If you wait too long to offer a plan, your creditors can make their own proposals, which may not align with your goals. Creditors will vote on whether to accept your proposal. Should one or more creditors object, the judge assigned to your case will consider whether the plan is realistic, fair, equitable, proposed in good faith, and is in the best interests of creditors. 

Chapter 11 Subchapter V

Chapter 11 Subchapter V is a newer procedure available to smaller businesses. This process tends to offer faster, less expensive restructuring opportunities, but to qualify, a business cannot owe more than $3,024,725 as of April 2022. 

Our Idaho Falls bankruptcy lawyers are prepared to assist businesses of all sizes with both traditional Chapter 11 filings and Subchapter V cases. We are especially well-versed in this area and understand how Idaho and Montana courts evaluate business reorganization plans. No matter the state of your business’s finances, we can help you develop a proposal that effectively restructures its debts and obligations. Our goal is to get your company through this difficult moment and set it up for future success. 

Debt Relief Solutions for Every Situation

At Tolson & Wayment Freedom Law, our Idaho Falls bankruptcy lawyers understand that every individual or business facing financial difficulties has a unique situation. That's why we provide personalized bankruptcy representation to help you achieve financial freedom. Our experienced Idaho Falls bankruptcy attorneys have the knowledge and expertise to guide you through the bankruptcy process, whether you're an individual or a business struggling with debt in Idaho or Montana.

Aside from bankruptcy, we also offer other debt relief solutions to help you regain control of your finances. These include:

• Credit counseling
• Debt negotiation
• Debt settlement
• Loan modifications

Our goal is to provide you with the best debt relief solution that fits your specific needs. We'll work with you every step of the way to ensure that you understand the options available to you and that you're comfortable with the decisions you make.

Don't let debt control your life. Contact us today to schedule a consultation and take the first step towards financial freedom.

Not sure if bankruptcy is the best path forward? Contact us online or call (208) 271-4403 to discuss your circumstances with a bankruptcy attorney near you at Freedom Law.