State of New Hampshire Chapter 7 Bankruptcy Rules
- New Hampshire allows residents to exempt some assets from seizure and liquidation by the courts.a poor purse image by Maria Brzostowska from Fotolia.com
A Chapter 7 bankruptcy allows you to get rid of your debts by liquidating and distributing any assets to creditors. Once the assets are gone, or if there are no assets to distribute, the court will discharge your debts and you get a clean slate, debt-wise. The federal government sets most of the rules for Chapter 7 bankruptcy. However, New Hampshire has state-specific rules and figures that you must take into account before you file for bankruptcy in the state. - You have to live in New Hampshire for at least 90 days before you can file for Chapter 7 bankruptcy. If you lived in another state during that time, you will have to file in that state.
- To file Chapter 7 bankruptcy in New Hampshire, as of 2010, you will have to pay a $245 filing fee, a $15 trustee fee, and a $39 administrative fee for a total of $299. New Hampshire bankruptcy courts accept cash,money orders, checks or credit cards if an attorney is representing the debtor. People who file "pro se," meaning without a lawyer, will have to pay by money order or cash. Filers who cannot afford to pay the fees may receive a waiver from the court or permission to pay the fee over a period of 120 days.
- Federal law requires Chapter 7 filers to undergo a "means test" to determine is there is enough income to pay back some or all of the debt. Filers in New Hampshire must have income under the state median of $55,766 for a one-income household and $65,751 for a two-income household. If your income is higher, you may still be able to qualify for Chapter 7 if your disposable income after paying for necessities is less than $100 or less than the amount it would take to pay back 25 percent of your debt within five years. If you do not pass the means test, you will have to file Chapter 13 bankruptcy and make payments on the debt.
- New Hampshire allows debtors to exempt some assets from seizure and liquidation by the courts. Real estate with less that $100,000 in equity is exempt as well as vehicles worth $4000 or less. Debtors may also keep households goods such as clothes and furniture worth $3500 or less. Tools and equipments that you use in your line of work are also exempt up to $5000 and property you own in a business partnership is also exempt. Retirement accounts up to $1,095,000 and pensions are exempt as well. New Hampshire offers a $7000 wild-card exemption that you can apply to any property, cash or other assets. The law doubles exemption amounts for married filers.
