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New Hampshire Bankruptcy


New Hampshire Bankruptcy Law

New Hampshire bankruptcy laws closely reflects the bankruptcy laws and procedures of other states.  Many of the NH bankruptcy laws with the state of New Hampshire are intended to help an individual, family, or corporation make it through a hard economic period.  Although filing for New Hampshire bankruptcy will undoubtedly hurt your credit, the point of NH bankruptcy is intended to harm your credit in the short run and help it greatly in the long run.  Bankruptcy shows up on a credit report for up to 10 years.  

Like in most other states, a citizen of New Hampshire must complete a credit counseling course six months before filing for New Hampshire bankruptcy, and they must also show evidence of taking a debtor education before reaching a settlement.  

New Hampshire Bankruptcy : Personal and Corporate

Individuals, families, and corporations can file for NH bankruptcy.  A family with a tough economic condition or a large amount of debt usually decides to file for Chapter 7 or Chapter 11 bankruptcy.  There is no minimal amount of debt required in order to file for NH bankruptcy, but people with large amounts of debt usually only file for bankruptcy.  Corporations usually file a Chapter 11 bankruptcy which gives them time to reorganize their finances, employees, and other logistics in order to possibly increase their profits.

NH Bankruptcy Chapter 7

This type of bankruptcy is often referred to as straight bankruptcy or liquidation.  If a family or individual has a large enough amount of debt, they may not be able to file for Chapter 7.  New Hampshire law also requires a person to pass a “means” test before they can file for Chapter 7 bankruptcy, and their income must fall below the state’s median income.  The state of NH has a higher median income than most states at $51,550.  If a person can in fact file for Chapter 7, they may also be exempt from turning over the following assets:

• Residence worth up to $100,000

• Wages up to fifty times the minimum wage

• One automobile up to $4,000

• $3,500 of household furniture 

• Certain appliances and personal items

• $7,000 of for other exemptions 

NH Bankruptcy Chapter 11

A business or corporation can file Chapter 11 bankruptcy if they are facing low profits and other similar economic troubles.  The owner of the company often oversees the reorganization of the company on “good faith,” and they are often required to report back to a judge and/or creditor after a certain amount of time.  

NH Bankruptcy Chapter 13

A family or individual with a steady and significant income can often apply for Chapter 13 bankruptcy.  The advantages to Chapter 13 include keeping your home in the midst of foreclosure and other possible assets.  Families or individuals agree upon a settlement with a creditor and make payments for anywhere from three to five years, and in some cases, longer.  

Taxes

Tax returns are seen as valuable assets in the state of New Hampshire under Chapter 7.  You may not always lose your tax returns, but a creditor may come after the wages unless you file a Chapter 13.  

Filing for New Hampshire Bankruptcy

The process of New Hampshire bankruptcy can be complex and stressful, so it’s often very important to hire a lawyer.  Within the state of New Hampshire, Chapter 7 bankruptcies often last a very short amount of time, but the state lets creditors take a wide array of valuable goods compared to some other states.  It is important to hire a lawyer in order to help you with filing the proper documents and advising you during meetings with a creditor.  

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