Alaska Bankruptcy Laws should be known by every resident of the state of Alaska. Can’t pay your medical bills anymore? Having difficulty catching up with your credit card payments? Or getting late on your mortgage monthly payments? If you are experiencing any one of these situations, filing for bankruptcy is the best option you have. To know what to do during these situations, you should familiarize recent Alaska bankruptcy laws to know what to do and what to expect.
Before making the decision to declare bankruptcy, seek legal counsel from a lawyer who knows the specific laws of the state of Alaska to make sure that bankruptcy is your last option. The lawyer will ask a variety of questions pertaining to your finances and will determine if it is really appropriate to declare for bankruptcy. He will explain the difference between Chapter 7 and Chapter 13 bankruptcy and what to expect in these bankruptcy types. All the legal proceedings involved in bankruptcy will be explained too.
The state of Alaska specifies two bankruptcy types: Chapter 7 and Chapter 13. For Chapter 7 bankruptcy, you will have to take the means test to prove that you cannot pay off debts to your creditors. This is done by comparing your income for the last 6 months to the median income of the state based on data from the US Census Bureau. If your income is below the median income level of the state, you will be allowed to file Chapter 7 bankruptcy. A trustee is assigned to your case to help you. This trustee will take over the control of your non-exempt assets, liquidates, and sells these assets. The proceeds will then be paid to your creditors according to the structure determined by the court.
Your other bankruptcy type option is Chapter 13. If you stand to lose a lot of property this is the best choice you have. Instead of selling your assets, the debtor, with the help of the trustee, will establish a repayment plan that can be implemented in 3 to 5 years to pay off your creditors. It is the trustee’s duty as the court-appointed official to ensure that you are following up on your payments. Although you will have the chance to gradually diminish your debts, you won’t be allowed to obtain new credit while you are still on your repayment plan. You won’t be able to apply for any kind of loan while you are on this plan.
When declaring bankruptcy, there are some assets that are protected from your creditors. These are called exemptions, and Alaska bankruptcy laws specify the following as such:
• Principal residence of up to $70,200;
• Weekly net income of $456 for individuals and $716 for a solo wage earner in a family;
• Automobile of up to $3,900, as long as the vehicle’s worth is not more than $26,000;
• Personal properties like pets of up to $1,300; jewelry of up to $1,300; heirlooms, family pictures, musical instruments, clothing, and books of up to $3,900; and tools for trade of up to $3,640; and
• Other properties that include public benefits, burial plots, life insurance proceeds, health benefits, and disability benefit payments
If you have already decided on what bankruptcy to file for with the help of your lawyer, you can file a formal petition for bankruptcy in the federal bankruptcy court. Be sure that you are well-informed of what to do and how to go about the whole proceeding.