Bankruptcy Tutor
In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment, or in a bankruptcy proceeding.
A homestead may consist of the dwelling house or the mobile home, with the appurtenant buildings and surrounding land, in which the owner resides or intend to reside. It may also include unimproved land owned by an individual with an intent to place a house or mobile home thereon which is intended to be used as the individual's residence. The amount of homestead which may be exempt from attachment and from execution or forced sale for the debts of the owner may not exceed the lesser of (i) the total net value of the lands, mobile home, and improvements as described in section 55-1001, Idaho Code; or (ii) the sum of$50,000.00. (I.C. 55-5003, 55-1008.) Property that is occupied by the owner as his principal residence is generally automatically exempt from all legal process to the extent allowed by law. (I.C. 55-1004(1).) An owner who selects a homestead from unimproved or improved land that is not yet occupied as a homestead must execute a declaration of homestead and file the same for record in the office of the recorder of the county in which the land is located. (I.C. 55-1004(2).)
Personal property may be exempt from execution or forced sale under any legal process either with limitations or without limitations. Some of the personal property which may be exempt without limitation include:
a burial plot,
health aids reasonably necessary to enable the individual or a dependent to work or to sustain health,
social security benefits,
veteran's benefits,
federal, state or local public assistance,
benefits payable for medical, surgical or hospital care, and
state unemployment compensation. (I.C. 11-603.)
Those property which are exempt only as to limited value may be divided into two groups: one that is to the extent that it is reasonably necessary for the support of the debtor and his dependents, and one that is subject to value limitation. Disability or illness benefits, alimony, support or separate maintenance, insurance, settlement or judgment proceeds accrued as a result of bodily injury or wrongful death of an individual of whom the debtor was or is a dependent, insurance proceeds if the debtor is the spouse or dependent of the insured, are exempt to the extent reasonably necessary for the support of the debtor and his dependent. These exemptions may be lost if the debtor commingles the funds with other funds. (I.C. 11-604.) In addition, retirement income to which citizens of Idaho are, or may be, entitled are protected from execution or garnishment. (I.C. 11-604A.)
Property that are subject to limited value may include furnishings and applicants, one firearm, wearing apparel, household pets, books, and musical instruments, family portraits and heirlooms, which are limited to a value not exceeding $500.00 on any one item, or not to exceed an aggregate value of $5,000.00;
Aggregate interest in Life Insurance policy, $5,000;
jewelry not to exceed an aggregate value of $1,000
One firearm $500;
professional books and tools of the trade not to exceed an aggregate value of $1,500.00;
one automobile not to exceed $3,000 in value. (I.C. 11-605.)
Wild Card $800.
If certain exempt property are destroyed or damaged and the debtor has been indemnified for it, the debtor is entitled to exemption of the proceeds, to the extent of the value allowed under the I.C. 11-605, provided that they are traceable for three (3) months after the proceeds are received. (I.C. 11-606.)
A homestead may consist of the dwelling house or the mobile home, with the appurtenant buildings and surrounding land, in which the owner resides or intend to reside. It may also include unimproved land owned by an individual with an intent to place a house or mobile home thereon which is intended to be used as the individual's residence. The amount of homestead which may be exempt from attachment and from execution or forced sale for the debts of the owner may not exceed the lesser of (i) the total net value of the lands, mobile home, and improvements as described in section 55-1001, Idaho Code; or (ii) the sum of$50,000.00. (I.C. 55-5003, 55-1008.) Property that is occupied by the owner as his principal residence is generally automatically exempt from all legal process to the extent allowed by law. (I.C. 55-1004(1).) An owner who selects a homestead from unimproved or improved land that is not yet occupied as a homestead must execute a declaration of homestead and file the same for record in the office of the recorder of the county in which the land is located. (I.C. 55-1004(2).)
Personal property may be exempt from execution or forced sale under any legal process either with limitations or without limitations. Some of the personal property which may be exempt without limitation include:
a burial plot,
health aids reasonably necessary to enable the individual or a dependent to work or to sustain health,
social security benefits,
veteran's benefits,
federal, state or local public assistance,
benefits payable for medical, surgical or hospital care, and
state unemployment compensation. (I.C. 11-603.)
Those property which are exempt only as to limited value may be divided into two groups: one that is to the extent that it is reasonably necessary for the support of the debtor and his dependents, and one that is subject to value limitation. Disability or illness benefits, alimony, support or separate maintenance, insurance, settlement or judgment proceeds accrued as a result of bodily injury or wrongful death of an individual of whom the debtor was or is a dependent, insurance proceeds if the debtor is the spouse or dependent of the insured, are exempt to the extent reasonably necessary for the support of the debtor and his dependent. These exemptions may be lost if the debtor commingles the funds with other funds. (I.C. 11-604.) In addition, retirement income to which citizens of Idaho are, or may be, entitled are protected from execution or garnishment. (I.C. 11-604A.)
Property that are subject to limited value may include furnishings and applicants, one firearm, wearing apparel, household pets, books, and musical instruments, family portraits and heirlooms, which are limited to a value not exceeding $500.00 on any one item, or not to exceed an aggregate value of $5,000.00;
Aggregate interest in Life Insurance policy, $5,000;
jewelry not to exceed an aggregate value of $1,000
One firearm $500;
professional books and tools of the trade not to exceed an aggregate value of $1,500.00;
one automobile not to exceed $3,000 in value. (I.C. 11-605.)
Wild Card $800.
If certain exempt property are destroyed or damaged and the debtor has been indemnified for it, the debtor is entitled to exemption of the proceeds, to the extent of the value allowed under the I.C. 11-605, provided that they are traceable for three (3) months after the proceeds are received. (I.C. 11-606.)
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