The list below contains some of the most common bankruptcy exemptions provided by the state exemption guidelines in Idaho. While reviewing this list of assets, it is very important that a debtor keep in mind that some of these exemptions may increase in value for those who are married and filing a petition for joint bankruptcy with their spouse.
It also should be noted that unlike many other states, Idaho has chosen to opt out of the federal bankruptcy exemption rules. Instead, Idaho has created its own set of bankruptcy property exemptions under state law. Accordingly, if a debt intends to file for bankruptcy in Idaho, then they should contact a local bankruptcy lawyer prior to filing since they will already be familiar with the bankruptcy property exemption laws in the state of Idaho.
The following is a list of some property and assets that may be exempted under Idaho bankruptcy exemptions, such as:
- The Idaho homestead exemption: According to Idaho bankruptcy exemption guidelines, the Idaho homestead exemption offers a maximum exemption of up to $175,000 in equity for a primary residence or mobile home. In contrast to the bankruptcy property exemptions enacted by other states, Idaho does not adjust this figure in accordance with the number of persons filing for bankruptcy.
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- For instance, whether a debtor files a petition for bankruptcy as a single individual without a family or files a joint petition for bankruptcy with their spouse, the homestead exemption will remain at the maximum amount of $175,000 in equity. In other states, however, the homestead exemption may double in value if a debtor files a joint petition for bankruptcy with their spouse. This is also true under the federal exemption statute.
- Exemption for motor vehicles: A debtor may be able to claim an exemption of up to $10,000 in value for a single motor vehicle. This means that if a debtor owes more than $10,000 on their motor vehicle, then this exemption can be used to protect their car from seizure by creditors.
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- On the other hand, if a debtor has almost paid off their car or owes less than $10,000, then the bankruptcy trustee appointed to their case can force them to sell their car to pay off their creditors and satisfy their remaining debts.
- Personal property exemption in Idaho: There are some items of personal property in Idaho that may qualify for an unlimited exemption, such as burial plots, recovery from wrongful death or personal injury lawsuits that is used for support, and medical devices. There are also certain items of personal property that are not eligible for an unlimited exemption, but may qualify for an exemption up to a particular amount. Some items that qualify for this exemption up to a certain amount include:
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- Furniture, household goods, appliances, family heirlooms or portraits, musical instruments, clothes, pets, books, jewelry, crops, firearms, and health aids. Each of these items of property may also have a set limitation placed upon them. For example, the collective amount permitted for jewelry in Idaho is a $1,000 exemption.
- Tools of the trade and wage exemptions: Tools of the trade exemption, such as equipment, books, and inventory used to perform a profession or trade, may be protected for up to a value of $10,000. As for the amount of wages that can be garnished, those cannot exceed a value of more than $2,500 in a calendar year.
- Pension and retirement plan exemption: Certain pension and/or retirement plans may be eligible for an exemption, such as standard IRAs, Roth IRAs, ERISA funds, unemployment compensation, workers’ compensation, welfare benefits, veterans’ benefits, and Social Security benefits. Additionally, some benefits that are given to state workers (e.g., police and firefighters) may also be eligible for an exemption.
- Insurance exemption: Idaho offers an unlimited exemption for benefits provided under a group life insurance policy, proceeds that stem from life insurance, fraternal benefits, society benefits, medical benefits, disability benefits, and various other forms of insurance necessary for support.
- Wildcard exemption in Idaho: The wildcard exemption applies to items of property that do not fall under any of the above categories or can be used when an item would exceed the amount permitted under its traditional category. The maximum amount of value that the wildcard exemption in Idaho can protect is $1,500 worth of tangible property items.