Have you ever wondered if bankruptcy might be a good option for you to regain your financial footing? Do you have questions about how bankruptcy works in Idaho? This information below guides you through some of the information you need to know in order to make an informed decision about whether bankruptcy is right for you. 

In addition to the attached Bankruptcy Basics guide, Idaho Legal Aid Services has created an Understanding Bankruptcy in Idaho video in both English and Spanish.

If you are low income and would like more information about bankruptcy, please contact your local Idaho Legal Aid office. 

If you need to file Chapter 7 bankruptcy, you may be able to file your bankruptcy through Upsolve. Upsolve is a national non-profit that helps people file for Chapter 7 bankruptcy at no cost. Read about whether Chapter 7 bankruptcy is right for you and visit Upsolve’s web site, upsolve.org, to see if you qualify.

The Federal Trade Commission has created guidance for consumers on whether debt relief or bankruptcy may be right for them. Debt got you down? You’re not alone. Consumer debt is at an all-time high. Whether your debt dilemma is the result of an illness, unemployment, or simply overspending, it can seem overwhelming. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. While the ads pitch the promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y. And although bankruptcy is one option to deal with financial problems, it’s generally considered the option of last resort. The reason: its long-term negative impact on your creditworthiness. Bankruptcy information (both the date of your filing and the later date of discharge) stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live. 

For more information, please visit their website at: https://www.consumer.ftc.gov/articles/0084-debt-relief-or-bankruptcy

Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully. 

For more information, please visit this U.S. Courts guide on filing without an attorney.

Be forewarned, the following journey through Chapter 7 bankruptcy law is a bit technical, so if you are considering filing for Chapter 7 bankruptcy, consider consulting with a bankruptcy attorney first. For more information, visit the National Bankruptcy guide on how Chapter 7 bankruptcy works.

Chapter 11 allows for reorganization that usually involves a corporation or partnership. For more information, visit the U.S. Courts bankruptcy basis for Chapter 11 bankruptcy.

A common question is whether or not a debtor can keep a credit card after filing for bankruptcy protection and do I have to list the cards I want to keep. If you owe a balance at the time the bankruptcy petition is filed, you must list the debt. This applies regardless of the amount of the debt. If you are worried that you cannot live without a credit card there are a few options. A credit card with a zero balance does not need to be listed and can be used after you file the bankruptcy petition. If you have a card with a low balance, you should pay it off before filing for bankruptcy. However, be careful not to use balance transfers to pay off the card as the transaction could be undone by the trustee or challenged by the creditor if it is determined that the transfer was fraudulent.

NOLO has created an excellent overview of this information as well.

Student loans are difficult, but not impossible, to discharge in bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.” 

To learn more, visit the Student Loan Borrower Assistance website.

A garnishment is basically a legal collections tool where a creditor obtains a court order compelling an employer to withhold a portion of an employee’s wages. The amount that can be withheld is capped at 25%, however, the percentage may vary depending on the state issuing the garnishment and the type of debt. The cap applies to all creditors, meaning 25% is the most that can be withheld at any one time. Garnishments, however, are not limited to wages and can involve one time garnishment of bank accounts or personal property. Whether or not bank accounts, personal property or tax returns can be garnished will depend the individual state.

More information can be found by visiting NOLO's guide on garnishments and bankruptcy.

Consumer fraud is a serious problem in Idaho, but, fortunately, it is often a preventable problem. As a consumer, you can protect yourself from fraud by understanding your rights and by making informed and intelligent decisions. There are a variety of steps you can take to protect your credit. Please review the Idaho Attorney General's Office Credit and Debt Manual for more information. Please note that this guide was created in 2005 so some information may no longer be accurate. 

If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report. It includes information on where you live, how you pay your bills, whether you've been sued or arrested, or have filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease. 

For more information about credit reports, please visit the Federal Trade Commission's Website here: https://www.consumer.ftc.gov/articles/free-credit-reports.

The Department of Justice has created an FAQ on credit counseling - which is separated into six major areas. Consumers, applicants, and approved agencies may find it helpful to review the questions in each area. You can access this information by visiting the Department of Justice Credit Counseling site.

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services. They all make the same claims but how can you repair your credit without hiring an agency? 

The Federal Trade Commission created a webpage addressing various ways you can improve your credit yourself, please click the link below. 

English: Repairing Your Credit Yourself

Ageing Safely has developed the following three forms to help with consumer law issues or issues dealing with money and debt: 

• Letter to a creditor to request debt forgiveness when a bill is owed
• Letter to a creditor to dispute a charge from a bank or company
• Letter to a credit bureau to dispute an item on a credit report 

Please visit Ageing Safely's website for links to these interactive forms: https://agingsafely.us/free-forms/.

Consumer fraud is a serious problem in Idaho, but, fortunately, it is often a preventable problem. As a consumer, you can protect yourself from fraud by understanding your rights and by making informed and intelligent decisions. 

El fraude al consumidor es Idaho, pero, afortunadamente, por lo general es un problema que se puede prevenir. Como consumidor, usted se puede proteger del fraude conociendo sus derechos y tomando decisiones inteligentes y acertadas.

At times we find ourselves in a difficult situation involving our bank, a large business, etc. and don’t know what to do. Calling customer service hasn’t led to any real results so you may be asking yourself what to do next? Below you will find a number of institutions both governmental and private that specialize in helping you to file a complaint. 

These institutions are similar to leaving a review on Google or Yelp except they work resolve the issue. As such, they are not places for a person to rant and rave about how terrible the service at a restaurant was, but rather to help a person that was a victim of a shady business, or to get help when a financial institution (like a bank) has mistreated someone. They are not law enforcement agencies imposing a punishment onto these businesses, but rather helping to add authority to your complaint. 

If your issue cannot be solved after submitting a complaint through one or more of these resources, it is recommended to seek legal help from a private attorney. Review the document below for links to the agencies that may be able to help if you submit a complaint. These agencies include: 

• 1. Consumer Financial Protection Bureau
• 2. Help with my Bank
• 3. Federal Trade Commission Complaint
• 4. Idaho Attorney General Consumer Protection Complaint
• 5. Better Business Bureau Complaint

For more information on common financial scams and how to report them to the appropriate agencies or officials, please review our Common Financial Scams Flyer or Brochure below. 

For other information regarding common digital scams, please visit: https://www.seniorlifestyle.com/resources/blog/protect-your-parents-from-common-digital-traps/.

What is Identity Theft? 
Identity Theft is the largest consumer complaint filed with the Federal Trade Commission (FTC) annually. If you have been the victim of identity theft, it could mean someone has used your name to: 

• make purchases
• get credit cards
• rent an apartment or
• obtain utilities without your permission 

In some cases, thieves may have received medical services in your name, re-routed your tax refund, or even impersonated you during contact with law enforcement. 

Identity theft may also include someone using checks on your account. This could be from stealing your checkbook or electronically obtaining access to your checking account. Use of an ATM card or credit card that you did not approve is also identity theft. In some cases, identity theft occurs within families to children, seniors, and domestic violence survivors, making reporting and recovery especially difficult. 

How Might Identity Theft Impact Me? 
Even if you are able to resolve a financial identity theft issue with your bank, this use of your name and credit history can result in you getting collection letters for things you did not purchase. It can also result in unfavorable entries on your credit report, causing you problems in getting credit or paying a higher interest rate. Becoming the victim of an identity theft can be a complicated and frustrating time in your life. 

What Can I Do? 
The Federal Trade Commission has created letters (in this booklet) that consumers can use to notify a debt collector or credit bureau of the theft of your identity. To use the letters, you must first report the crime of identity theft to the police. You do not need to know the name of the person who used your identity. You show the police the debt collection letters or other confirmation that you are the victim of this crime. 

The three forms below use the FTC-created material. You can also visit the National Identity Theft Victims Assistance Network to learn more. 

This material was produced in part by the Maryland Crime Victims' Resource Center, Inc. under award #2010-VF-GX-K030, awarded by the Office for Victims of Crime, Office of Justice Programs, U.S. Department of Justice. 

Neither the U.S. Department of Justice nor any of its components operate, control, are responsible for, or necessarily endorse, these materials including, without limitation, its content, technical infrastructure, and policies, and any services or tools provided. 

For more information on the project or regarding identity theft, you can go to identitytheftnetwork.org.

Idaho Coalition Against Identity Theft seeks to provide a coordinated community response to better assist victims of identity theft in our state. 

WHAT VICTIMS CAN DO 
Place a Fraud Alert on your credit reports by contacting one of the credit reporting agencies (“CRA’s”) listed on the back of this brochure. Request your free credit reports. Call all companies where an account has been misused or opened fraudulently. Close or flag as necessary. Follow up in writing, enclosing an Affidavit. Call your financial institution to review your accounts for suspicious activity. Report to the Federal Trade Commission. File a complaint online at www.ftc.gov. Enclose a copy of the complaint, called an ‘FTC Affidavit,’ with your letters to companies and CRAs. Provide a copy to the police if you file a police report. File a report with Police. Request a police report even if they are unable to investigate further. Ask police to attach your FTC Affidavit to the report. To fix mistakes on your credit report, send a copy of the report to each CRA and any company that provided the inaccurate information. CONTACT INFORMATION FOR ICAIT MEMBERS Adult Protection Services, Area Agency on Aging, Area III 208-322-7033 https://aging.idaho.gov/aaa/PSA3.html Adult Protection investigates allegations of exploitation of vulnerable adults 18 years of age and older. Works with law enforcement to substantiate crimes and has case managers who assist in obtaining support services for elderly clients. Cannot respond after hours but they do have an emergency hotline. Area III covers: Ada, Gem, Canyon, Owhyee, Elmore, Washington, Boise, Adams, Valley, & Payette counties. Better Business Bureau Snake River Region 1-800-218-1001 http://snake-river.bbb.org/ BBB staff can provide reference materials such as FTC pamphlets, general information and guidance on what to do if ID theft happens to you. The BBB conducts two free shred events every year to help consumers protect their personal information from ID thieves. BBB can do speaking engagements on Identity Theft for businesses and consumers as part of their ongoing outreach. Idaho Attorney General’s Office Consumer Protection Division 208-334-2424 www.ag.idaho.gov AG’s office an answer basic consumer questions about Idaho’s identity theft laws and direct consumers to other resources, such as the FTC or law enforcement agencies. The consumer protection division publishes the Identity Theft Manual, available at www.ag.idaho.gov. The Division’s informal dispute resolution service assists in some situations with resolving identity theft-related disputes involving consumer reporting agencies or creditors. The AG’s office cannot give legal advice or representation to individual consumers; it’s primary service to the public concerning identity theft is education. Idaho Department of Finance 208-332-8000 finance.idaho.gov Idaho Department of Finance (DOF) staff provide guidance and referrals to citizens who may be victims of ID theft and information on how to protect one's self from ID theft. DOF staff can provide speakers to groups that are interested in booking presentations on ID theft or other financial services related topics. DOF may provide assistance when the ID theft involves a DOF licensee, such as regulated lenders, collection agencies, escrow agencies, mortgage brokers/lenders/loan originators, state-chartered banks and credit unions, credit counselors, debt settlement agencies, securities brokers/agents, money services businesses, and credit repair organizations (but not federally-chartered financial institutions). Internal Revenue Service (IRS) and Taxpayer Advocate Service (TAS) IRS Identity Theft Hotline 1-800-908-4490 Taxpayer Advocate: 1-877-777-4778 www.irs.gov Victims of identity theft are encouraged to contact the IRS Identity Protection Specialized Unit at 1-800-908-4490. The Taxpayer Advocate Service (TAS) assists with resolving tax problems when normal IRS channels are not working for a consumer. United States Attorney’s Office for the District of Idaho www.justice.gov/usao/id/ The United States Attorney's Office (USAO) provides extensive services to individuals identified as victims in a case that the USAO is prosecuting, including: notification of court proceedings, notification of victims’ rights, victim impact statements, referrals, and employer/creditor notification upon request. If an individual who is not an identified victim calls seeking information, they are provided limited information and appropriate referrals. Idaho Legal Aid Services, Inc. 208-345-0106 (Boise Service office) www.idaholegalaid.org Staff has been trained to guide victims of identity theft. When a victim calls any of Idaho Legal Aid Services’ offices, they will be told steps they can take to solve their problem and will be referred to the FTC’s website for further information and to access the identity theft affidavit. Idaho Legal Aid Services does not currently have funding to represent victims of identity theft unless the victim falls under one of our grants that would qualify the client for extended services (e.g., low-income senior or low-income domestic violence victim). Idaho State Tax Commission 208-334-7660 www.tax.idaho.gov Staff can provide copies of IRS Victims Assistance brochures, Boise Police Department Identity Theft brochures, and the link to IRS form 14039. Commission staff can lock specific Idaho tax accounts to force validation of all returns filed for that Social Security n umber to prevent filing of false returns. Cannot disclose individual’s names or tax information to law enforcement; this information has to be requested by the individual who could then provide it to law enforcement. If the name on a filed tax return or W2 is different, the information on those documents cannot be disclosed, even to the proper owner of the Social Security number (the identity theft victim). Victims can request copies of all documents showing BOTH their name and SSN. CREDIT REPORTING BUREAUS Equifax PO Box 740241 Atlanta, GA 30374 1-800-525-6285 (report fraud) www.equifax.com Experian PO Box 9352 Allen, TX 750131-888-397-3742 (report fraud) www.experian.com Trans Union PO Box 6790 Fullerton, CA 92834 1-800-680-7289 (report fraud) www.transunion.com FREE CREDIT REPORTS The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies-Equifax, Experian, and Trans Union– to provide a free copy of your credit report, at your request, once every 12 months. To order, visit www.annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form (available at www.ftc.gov/credit) and mail it to: Annual Credit Report Request Service PO Box 105281 Atlanta, GA 30348-5281 For more information about Idaho Coalition Against Identity Theft https://sites.google.com/a/idaholegalaid.org/idaho-coalition-against-identity-theft/ Or visit us on Facebook: facebook.com/idahocoalitionagainstidtheft This document was produced by Idaho Legal Aid Services, Inc. under award # 2010-VF-GX-K030, awarded by the Office for Victims of Crime, Office of Justice Programs, U.S. Department of Justice in conjunction with the Maryland Crime Victims’ Resource Center. The opinions, findings, and conclusions or recommendations expressed in this document are those of the contributors and do not necessarily represent the official position or policies of the U.S. Department of Justice or Maryland Crime Victims’ Resource Center, Inc.