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New Hampshire Bankruptcy Laws



New Hampshire Bankruptcy Laws should be known by every resident of the state of New Hampshire. There are some unexpected events in everyday life that forces us to reconsider our priorities. As much as you would like to maintain our credit rating and keep up with the bills, sudden hospitalization of a family member or abrupt closure of the company you work for is something you have no control of.

When you’ve exhausted all possible way out of your problem and you still have not found the perfect solution, then it’s high time you file for bankruptcy protection. New Hampshire bankruptcy laws have undergone through recent modifications since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 have been enacted. It should be every debtor’s responsibility to know the accurate details of the bankruptcy laws.

For those who are planning to file for bankruptcy, it is imperative that together with the necessary paperwork, a certification for a credit counseling program should also be included. This certification validates that you have attended the program 6 months prior to bankruptcy petition wherein you will be taught how to manage your debts, handle your money, and develop a budget. This is imposed by the federal courts to help you make the right decision. If you really are bent on pursuing a bankruptcy petition, try to absorb as much information as you can.

For the Chapter 7 bankruptcy protection program there are qualifications you have to comply to apply for the bankruptcy program. A debtor’s monthly income should be less than the median income level of most citizens of the state of New Hampshire to be approved for Chapter 7. If you are unfortunate enough to earn a hefty sum for the last six months and this will show in the computation, your application will be refused. It is the trustee’s duty to give you a series of evaluations to determine this. Should your non-exempt assets be liquidated to pay for your debts, it is also the trustee’s responsibility to oversee this.

On the other hand, if you do not qualify for Chapter 7, the court may recommend you to file for Chapter 13. This recommendation is base on your regular income that did not qualify for the previous bankruptcy program, but will be useful in Chapter 13 when you decide to pay your creditors. The role of the trustee in this bankruptcy program is to help you come up with a repayment plan to outline your scheme on how to pay your debts within a maximum time period of 5 years. The terms of your debts will be reorganized to give you more room for debt payments. As this plan needs the court’s approval, you should submit this together with the necessary documents like financial and bank statements, bills, and 2 years worth of tax returns upon the formal petition of Chapter 13 bankruptcy protection program.

During bankruptcy proceedings, you will be asked to list each and every item you own, even the family heirlooms should be accounted for, to determine which of these are secure and unsecure. For the non-exempt or unsecure assets, this is subject to liquidation according to New Hampshire bankruptcy laws.

Exemptions, on the other hand, are safeguarded from creditors. Here’s a partial list of exemptions:

• Your home or a mobile home for $100,000;
• An automobile worth $4,000;
• Jewelry worth $400 and any property amounting up to $1,000;
• Farm animals including those used for farming; and
• Other important items and some personal benefits.

These exemptions are just a small proportion of the actual exemptions. Continue to research other exemptions to know what assets are secured.