The economic impact of the COVID-19 pandemic has left many Idaho small business owners in a tough spot, grappling with mounting debt and financial uncertainty. I have consulted and met with more Idaho small business owners in the last 18 months than I have in the last 12 years of my practice. While bankruptcy is often associated with individuals seeking debt relief, it can also be a valuable tool for small business owners, even though business entities themselves do not receive discharges under the bankruptcy code. Idaho small business owners can still  leverage bankruptcy as a tool to navigate their financial challenges and regain control of their businesses.

Understanding the Basics:

1. Chapter 7 for Businesses: If the goal of the business owner is to shut down the business, chapter 7 may be a tool for an orderly and proper shutdown. During a business chapter 7 a chapter 7 bankruptcy trustee will be appointed to review business assets, liquidate business assets, and pay business creditors. While the business entity will not receive a discharge, the remaining unpaid creditors will know that the business no longer has assets and is not operating. If the business owner has personally guaranteed some or all the business debts, then a personal bankruptcy may be needed so a personal discharge of debts and a personal fresh start can be obtained.
2. Chapter 7 for Individuals: Small business owners often operate their businesses as sole proprietorships. In such cases, the business's debts are often personally tied to the owner. Filing for Chapter 7 bankruptcy as an individual can help discharge personal debts related to the business, providing relief for the owner.
3. Chapter 11 for Businesses: While businesses themselves don't receive discharges, Chapter 11 bankruptcy is designed to help businesses restructure their debts and continue operations. This option allows business owners to create a repayment plan that is more manageable and keeps their business afloat.

Utilizing Chapter 7 
If your small business is a sole proprietorship, filing for Chapter 7 bankruptcy can provide relief by discharging personal debts related to your business. Here's how you can make the most of this option:

1. Separate Business and Personal Debts: Ensure that you distinguish between business and personal debts. This separation is crucial for a successful Chapter 7 filing.
2. Liquidation of Business Assets: In a Chapter 7 bankruptcy, non-exempt business assets may be sold to repay creditors. Work with an attorney to understand which assets are legally protected and which are not legally protected.  Idaho does have a tool-of-the-trade exemption, but it does not cover all tools in every situation.
3. Personal Debt Discharge: After the liquidation process, personal debts related to the business can be discharged, providing you with a fresh financial start.

Chapter 11: Keeping Your Business Alive
For small businesses structured as corporations or LLCs, Chapter 11 bankruptcy can be a lifeline to save the business. Here's how to go about it:

1. Create a Chapter 11 Reorganization Plan: With the help of your attorney, develop a comprehensive reorganization plan that outlines how your business will repay creditors over time. This plan should be both realistic and sustainable.
2. Approval by Creditors: After the bankruptcy is filed your bankruptcy attorney will help you through the process of working with each Creditor. Creditors must approve the reorganization plan. Negotiate with them to gain their support, possibly by offering modified payment terms.
3. Court Approval: The court must also approve your reorganization plan. Ensure it complies with the bankruptcy code and meets all legal requirements.
4. Continued Operations: Once your plan is approved, your business can continue operations while adhering to the agreed-upon repayment schedule.

Idaho small business owners facing financial hardship can look to the bankruptcy code for help and as a viable tool for debt relief and business recovery. Whether you operate as a sole proprietorship or a business entity, bankruptcy can help you reach your goal and navigate financial challenges. By understanding Chapter 7 and Chapter 11 and working closely with an experienced bankruptcy attorney, Idaho small business owners can take steps toward securing the financial future of your business.

Student loan payments will start up again in October 2023.  Interest on student loans will resume accruing starting September 2023. With the upcoming due date for student loan payments on the horizon, it's crucial for borrowers to be well-prepared to manage their financial responsibilities effectively. As news reports and articles abound with advice and information, it's important to distill the key takeaways to ensure a smooth transition into repayment. In this article, we will delve into the imminent student loan payment due date and provide you with the top three ways you can get ready for this significant financial milestone.

Top 3 Tips to Prepare for Student Loan Payments

1. Assess Your Financial Situation

Before the due date arrives, take a comprehensive look at your financial situation. Gather all the necessary information regarding your loan balance, interest rate, and repayment terms. Understand the various repayment plans available to you, such as standard, income-driven, or graduated plans. News articles highlight the importance of knowing the specifics of your loans, as this knowledge will allow you to make informed decisions about the most suitable repayment strategy for your circumstances. Calculators and online tools can aid in estimating your monthly payments under different plans, empowering you to plan your budget effectively.

1. Create a Realistic Budget

As the due date approaches, crafting a realistic budget becomes paramount. This tip has been emphasized across various news updates, underscoring its significance in managing your finances during repayment. Evaluate your monthly income, including any part-time job or side gig earnings, and subtract your essential expenses, such as rent, utilities, groceries, and transportation. Allocate a portion of your budget to cover student loan payments. Remember that budgeting isn't just about covering expenses – it's also about striking a balance between debt repayment and maintaining a decent quality of life.

1. Explore Repayment Assistance and Forgiveness Programs

Many news reports highlight the availability of repayment assistance and forgiveness programs designed to alleviate the burden of student loans. Investigate whether you qualify for any of these programs, such as Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) plans. These programs aim to provide relief to borrowers who pursue careers in public service or have limited income relative to their debt. Experts frequently suggest that borrowers consider these options, as they can significantly impact the overall repayment journey. Stay informed about the eligibility criteria, application process, and potential benefits of these programs by referencing reliable news sources.

Bankruptcy Strategy

It’s well known that bankruptcy does not automatically wipe out student loans, but bankruptcy as a tool can be strategically used to clean up monthly budgets by wiping out debts like credit card debt, medical bills, payday loans, bank fees, and back owed utility bills. By wiping out these debts with a bankruptcy a student loan borrower with an otherwise tight budget can free up budget funds to pay monthly bills and have enough to pay their student loan payment. 

The impending student loan payment due date serves as a reminder for borrowers to prepare themselves for the financial responsibility that comes with repaying their education debt. By understanding the due date, assessing your financial situation, creating a realistic budget, and exploring repayment assistance and forgiveness programs, you can navigate this critical phase with confidence. Remember that staying informed and proactive will not only help you manage your student loan payments effectively but also set you on a path towards financial stability.
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As news updates continue to provide insights and recommendations for borrowers, keeping these top three tips in mind will undoubtedly serve as a solid foundation for successfully navigating the world of student loan repayments. So, gear up, gather information, and embark on this journey armed with knowledge and a well-thought-out plan. Your financial future is within reach – all it takes is preparation and a proactive approach.

Of course, it is incredibly difficult to predict the exact financial challenges that may arise in 2023, as it will depend on a variety of factors such as the global economy, political climate, and natural disasters. However, we are going to try anyways and point out some of the potential financial challenges that could arise in 2023 include:

1. Economic recession: The world economy is currently facing a great deal of uncertainty, with many experts forecasting a potential recession in the near future. A recession could lead to job losses and reduced income for many individuals and businesses, making it difficult for them to meet their financial obligations.
2. Rising inflation: Inflation can erode the purchasing power of people's savings and wages, this means that the cost of goods and services will be more expensive, and it will be harder for people to afford the things they need.
3. High unemployment rate: High unemployment rate can lead to financial difficulties for many individuals and families, as they may be unable to find work or earn enough to support themselves. This can lead to an increase in poverty and financial stress for many people.
4. Climate change and natural disasters: Climate change is causing more extreme weather conditions, which can lead to natural disasters, such as hurricanes, floods, and wildfires. These events can cause significant damage to homes and businesses, leading to financial losses for many individuals and businesses, as well as increased insurance costs.

It's important to keep in mind that these are potential challenges, and it's difficult to predict the exact financial challenges that will arise in 2023. It is important to be aware of the potential risks and to plan accordingly by saving and budgeting to mitigate the impact of these potential financial challenges. If you are already having a hard time affording the things you need and meeting your other financial obligations, schedule a free consultation to discuss how bankruptcy can eliminate debt and provide a financial fresh start.

If you have a judgment against you in Idaho, it means that a court has ruled in favor of the plaintiff in a civil case and has ordered you to pay a certain amount of money or to take some other action.
Here are some things you can expect when you have a judgment against you in Idaho:

1. The court will issue a written judgment that includes the specific amount of money you are ordered to pay the plaintiff.  You will also receive copies of any other orders the court has made in the case.
2. The judgment creditor (the person or entity to whom you are ordered to money) may try to collect the judgment or enforce the judgment. 
3. There are generally three ways in Idaho to collect on a judgment. 
   1. First is by garnishing your wages. The laws of Idaho will allow a judgment creditor to garnish up to 25% of your paycheck after taxes are deducted.  The garnishment will continue each paycheck until the debt has been paid in full.
   2. Second is by levying against your bank accounts.  A bank account levy is where the judgment creditor obtains the authorization to deduct funds from your bank account. A bank account levy can result in 100% of your bank account balance being taken.  A levy generally happens once a month until the debt has been paid in full.
   3. Third is by seizing your assets. The judgment creditor can take the civil judgment and file it with the county recorder’s office.  Filing a civil judgment creates a judgment lien.  The judgment lien will attach the judgment to any real estate you own in that county.  The judgment lien then can legally act like a mortgage on your real estate and foreclose on the property.  Idaho judgment liens are typically filed and enforced with the judgment creditor knows you have real estate.  If you don’t have real estate in Idaho then you will likely see a judgment collected by the first two options for collection.
4. You may be able to appeal the judgment if you believe it was made in error or if there are other grounds for appeal. Appealing the judgment can stop or stay the enforcement of the judgment.  This option can be very expensive so make sure you discuss the grounds for appeal with an experienced Idaho attorney to make sure your appeal will be successful.
5. If you are unable to pay the judgment, you may be able to negotiate a payment plan or settlement with the judgment creditor. If the judgment creditor does not know where you work or where you bank you may have the option of contacting them and negotiating a settlement.  The judgment creditor will likely not want to settle after having successfully accomplished all the legal work of obtaining a judgment against you.  You may need to look for other options to address the judgment and obligation to pay.
6. You may be required to appear at a Debtor’s Exam.  If the judgment creditor is not able to find where you work or where you bank, they are able to obtain a court order that will require you to appear in court to answer financial questions and to provide financial documents. Because this is a court order to appear you want to make sure you do not miss the court date.  Missing a debtor’s exam will result in a bench warrant for your arrest because you did not comply with a court order to appear.
7. Filing bankruptcy may be a last resort option to address and Idaho judgment.  Once a bankruptcy is filed the Idaho lawsuit must stop.  If there is already a judgment entered, the bankruptcy will stop the judgment creditor from collecting or enforcing the judgment.  If a garnishment has already started, the bankruptcy will stop the garnishment from continuing.  If a bank levy has already happened, filing a bankruptcy will prevent it from happening in the future. 

It's important to take the judgment seriously and to take steps to address the debt as soon as possible. Ignoring a judgment can result in additional legal actions being taken against you, such as wage garnishments, seizure of your assets, and debtor’s exams. If you are unsure of what to do, you should consider consulting with an attorney for advice. 

Should you fall behind in paying your debts, or if an error is made on your account, it is likely that you will be contacted by what is known as a “debt collector”. A debt collector is a person, other than the original creditor, who collects debts owed to others. During this collection process you have the right to be treated fairly.
 Your rights are listed in The Fair Debt Collection Practices Act (FDCPA). This federal law prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting debts. You can learn a lot about your rights from the Federal Trade Commission's web site.
Under the FDCPA:

• Debt collectors may contact you only between 8 a.m. and 9 p.m.
• Debt collectors may not contact you at work if they know your employer disapproves. You may request to have them call you either before or after work, but you must be willing to answer the phone during your requested times.
• Debt collectors may not harass, oppress, or abuse you.
• Debt collectors may not lie when collecting debts, such as falsely implying that you have committed a crime. (If this does occur this could be a sign that you are dealing with a scammer.)
• Debt collectors must identify themselves to you on the phone.
• Debt collectors must stop contacting you if you ask them to do so in writing.

It is also necessary to remember that if a creditor contacts you on a debt that was discharged through your bankruptcy, they are violating the Federal Discharge Order.  If this is happening to you, you may have a cause of action against the debt collector.  Call us and we can help determine what options you have.
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If you feel that your rights have been violated in any way, call Peterson Zeyer Law and set up a free consultation. We will be able to help you through the necessary steps to put a stop to oppressive debt collectors. 

You’ve probably heard that you can get rid of your credit card debt by filing for bankruptcy. This is true, for the honest but unfortunate debtor. Overwhelming credit card debt is one of the top reasons people file bankruptcy. Schedule a free bankruptcy consultation with Idaho bankruptcy attorney Hyrum Zeyer and he will guide you smoothly through the bankruptcy process to successfully clear credit card debt and get a fresh start. Below is information about what to expect when filing bankruptcy.

Preparing to File Bankruptcy

Information and Documentation Needed
To prepare your petition and schedules, Peterson Zeyer Law will help you gather and organize your financial information and documents. After a free bankruptcy consultation, Peterson Zeyer Law will let you know what documents you will need to provide. Everyone should plan on providing the following documents:

• Last two years of filed federal and state income tax returns
• Last six months of paystubs
• A list of all your assets
• A list of all your creditors
• Last six months of statements for each financial account
• Copies of any collection lawsuit against you

Evaluating Your Assets
To file bankruptcy, the bankruptcy code requires that you list all your assets, even your small and simple assets. Financial assets, including bank accounts, you’ll need to provide the last six months of statements. It’s always important to find the current fair market value of your real property and vehicles. Online websites that value real property and vehicles are a good place to start but sometimes real estate agents or appraisers are needed. For your remaining personal assets like clothing, household goods, and personal items, list what you would expect to pay at a yard sale or on Facebook Marketplace for a similar item. If you have jewelry, antiques, original art, or collectibles of any kind, an appraisal may be required. With current and accurate values for your assets bankruptcy attorney Hyrum Zeyer will help protect your assets to the fullest extent of the law.
Taking the Credit Counseling Course
The bankruptcy code requires that you take an online course before filing the bankruptcy and second course after filing bankruptcy.  Each course takes about 90 minutes to complete and once completed you will receive a certificate of completion that needs to be filed with the bankruptcy court.  Peterson Zeyer Law will provide all the information needed to complete this step and to file the certificates for you.

What to Expect When Your Bankruptcy Petition Is Filed

Your Bankruptcy Case Number and the Automatic Stay
Once you file your petition, schedules, list of creditors, and certification of completion of the credit counseling course, and you pay your filing fee, you will receive a bankruptcy case number identifying your case. Once your bankruptcy is filed the bankruptcy automatic stay is in place. Creditors will receive notice of your bankruptcy filing and the automatic stay. The automatic stay prevents Creditors from instituting or continuing any collection efforts against you, including sending letters, calling you, suing you, continuing a lawsuit, garnishing your wages, or levying on your bank account. If a creditor persists in collection efforts, contact the Peterson Zeyer Law to resolve the issue.
Your Meeting of Creditors
A day or two after you file, your Meeting of Creditors will be scheduled. Peterson Zeyer Law will represent you at this Meeting of Creditors and will prepare you to meet with the Trustee. During this meeting the trustee will swear you in and ask you questions about your bankruptcy petition, finances, and assets.
The meeting is also an opportunity for creditor to appear and ask you questions. Usually, Creditors do not appear and ask questions.  However, they can.  Creditors will be more likely to appear if there is an allegation of fraud on your part in incurring the debt, or if you have a disgruntled ex-spouse or neighbor that you owe a debt to.
These meets usually last 8 to 10 minutes, and Bankruptcy Attorney Hyrum Zeyer with Peterson Zeyer Law will make sure you are prepared to answer the questions at the Meeting of Creditors and that this meeting will go smoothly for you. 
Your Financial Management Course
Any time after you file, you can take this second course online. Just like the first course, a certificate of completion must be filed with the bankruptcy court. Peterson Zeyer Law will make sure to send you a reminder about this course and will file your certificate of completion for you.  
Receiving Your Discharge Order
After the deadline for creditors to object to discharge has passed, the court will automatically enter a discharge order. You and your creditors will be mailed the discharge order directly from the bankruptcy court. This discharge order means that you are no longer responsible for paying back your dischargeable debt.  Peterson Zeyer Law will help you know if you have any debts that will not be automatically discharged like student loans, some tax debts, and family support obligations.

Bankruptcy attorney Hyrum Zeyer with Peterson Zeyer Law has the experience to make the bankruptcy process simple and smooth for you. For a free bankruptcy consultation call us at 208-433-9882 or access Mr. Zeyer’s online calendar through the Contact Link.

You’ve probably heard that you can get rid of your credit card debt by filing for bankruptcy. This is true, for the honest but unfortunate debtor.
Overwhelming credit card debt is one of the top three reasons people file bankruptcy, the others being job loss and medical debt. Schedule a free bankruptcy consultation with Idaho bankruptcy attorney Hyrum Zeyer and he will guide you smoothly through the bankruptcy process to successfully clear credit card debt and get a fresh start.

Preparing to File Bankruptcy
Information and Documentation Needed
To prepare your petition and schedules, Peterson Zeyer Law will help you gather and organize your financial information and documents. After a free bankruptcy consultation, Peterson Zeyer Law will let you know what documents you will need to provide. Everyone should plan on providing the following documents:

• Last two years of filed federal and state income tax returns
• Last six months of paystubs
• A list of all your assets
• A list of all your creditors
• Last six months of statements for each financial account
• Copies of any collection lawsuit against you

Evaluating Your Assets
To file bankruptcy, the bankruptcy code requires that you list all your assets, even your small and simple assets. Financial assets, including bank accounts, you’ll need to provide the last six months of statements. It’s always important to find the current fair market value of your real property and vehicles. Online websites that value real property and vehicles are a good place to start but sometimes real estate agents or appraisers are needed. For your remaining personal assets like clothing, household goods, and personal items, list what you would expect to pay at a yard sale or on Facebook Marketplace for a similar item. If you have jewelry, antiques, original art, or collectibles of any kind, an appraisal may be required. With current and accurate values for your assets bankruptcy attorney Hyrum Zeyer will help protect your assets to the fullest extent of the law.
Taking the Credit Counseling Course
The bankruptcy code requires that you take an online course before filing the bankruptcy and second course after filing bankruptcy.  Each course takes about 90 minutes to complete and once completed you will receive a certificate of completion that needs to be filed with the bankruptcy court.  Peterson Zeyer Law will provide all the information needed to complete this step and to file the certificates for you.

What to Expect When You File Chapter 7 Bankruptcy
Your Bankruptcy Case Number and the Automatic Stay
Once you file your petition, schedules, list of creditors, and certification of completion of the credit counseling course, and you pay your filing fee, you will receive a bankruptcy case number identifying your case. Once your bankruptcy is filed the bankruptcy automatic stay is in place. Creditors will receive notice of your bankruptcy filing and the automatic stay. The automatic stay prevents Creditors from instituting or continuing any collection efforts against you, including sending letters, calling you, suing you, continuing a lawsuit, garnishing your wages, or levying on your bank account. If a creditor persists in collection efforts, contact the Peterson Zeyer Law to resolve the issue.
Your Meeting of Creditors
A day or two after you file, your Meeting of Creditors will be scheduled. Peterson Zeyer Law will represent you at this Meeting of Creditors and will prepare you to meet with the Trustee. During this meeting the trustee will swear you in and ask you questions about your bankruptcy petition, finances, and assets.
The meeting is also an opportunity for creditor to appear and ask you questions. Usually, Creditors do not appear and ask questions.  However, they can.  Creditors will be more likely to appear if there is an allegation of fraud on your part in incurring the debt, or if you have a disgruntled ex-spouse or neighbor that you owe a debt to.
These meets usually last 8 to 10 minutes, and Bankruptcy Attorney Hyrum Zeyer with Peterson Zeyer Law will make sure you are prepared to answer the questions at the Meeting of Creditors and that this meeting will go smoothly for you. 
Your Financial Management Course
Any time after you file, you can take this second course online. Just like the first course, a certificate of completion must be filed with the bankruptcy court. Peterson Zeyer Law will make sure to send you a reminder about this course and will file your certificate of completion for you.  
Receiving Your Discharge Order
After the deadline for creditors to object to discharge has passed, the court will automatically enter a discharge order. You and your creditors will be mailed the discharge order directly from the bankruptcy court. This discharge order means that you are no longer responsible for paying back your dischargeable debt.  Peterson Zeyer Law will help you know if you have any debts that will not be automatically discharged like student loans, some tax debts, and family support obligations.

Bankruptcy attorney Hyrum Zeyer with Peterson Zeyer Law has the experience to make the bankruptcy process simple and smooth for you. For a free bankruptcy consultation call us at 208-433-9882 or access Mr. Zeyer’s online calendar through the Contact Link.