Bankruptcy Update-Idaho Raises Homestead Exemption
Idaho Bankruptcy Update-Homesteads and COVID-19
April 6, 2020
The Idaho exemptions have recently changed significantly in favor of borrowers. An exemption is an item of value that is protected from a creditor’s reach. Even if a person is sued and a judgment is entered against the borrower, a creditor is still barred from taking these items.
One of the biggest changes is to Idaho’s homestead exemption. Idaho Code Section 55-1001 allows an Idaho resident to exempt $175,000 of equity in their home. How does this work?
If your home is worth: $400,000
And you owe (mortgage): ($225,000)
You can protect the difference: $175,000
So long as the equity (value – mortgage) is less than $175,000 you can protect that equity from a creditor or trustee’s reach.
Foley Freeman is committed to continuing to provide our clients with bankruptcy advice during the current Covid-19 pandemic
As a result of the current coronavirus pandemic, Foley Freeman has transitioned for the time being to a largely remote work environment. Working remotely, we have the knowledge, experience, and resources to help you with your bankruptcy, reorganization, and debt settlement needs. Via telephone, video conferencing, and email, Foley Freeman can craft quality bankruptcy and reorganization documents for your review and approval—be it a “fresh start” chapter 7 bankruptcy or a complicated chapter 11 reorganization. Once the documentation is finalized, we have established procedures to safely enable clients to visit our office and have those documents signed—all while complying with the current Covid-19 social distancing rules and guidelines.
Tough times are ahead for Idahoans and Foley Freeman is here to help. If you and your family are in financial distress, please contact us to make an appointment to discuss all your options including reorganizations, liquidations, workouts and all chapters of the bankruptcy code.
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