Bankruptcy in Idaho (2026): Exemptions & Means Test

Bankruptcy is governed by federal law, but in Idaho the property you can protect and the income test that applies to you are set by state-specific rules. Idaho has opted out of the federal bankruptcy exemptions, so residents must use Idaho's own exemption statutes. This page explains Idaho's exemptions, the Chapter 7 means test, and where cases are filed, as general legal information rather than legal advice.

Does Idaho use state or federal bankruptcy exemptions?

Federal law lets each state decide whether residents may use the federal exemption list in 11 U.S.C. 522(d). Idaho is an opt-out state, so Idaho residents must use the Idaho exemptions and cannot elect the federal 522(d) list. The applicable exemptions appear mainly in Idaho Code title 11, chapter 6 (personal property) and Idaho Code 55-1003 (homestead). If you recently moved to Idaho, the federal domicile rules in 11 U.S.C. 522(b)(3) may require you to use another state's exemptions for a period, so the list that applies depends on your residency history.

Idaho homestead exemption

Under Idaho Code 55-1003, the homestead exemption protects equity in a primary residence up to $175,000. The cap applies to the protected equity, not to the size of the lot, and the homestead generally arises automatically on an owner-occupied dwelling. The $175,000 figure is a fixed statutory amount and is not automatically indexed for inflation, so it changes only when the legislature amends the statute. A 2025 amendment to Idaho Code 55-1002 (2025 ch. 235) states that each spouse may separately claim a homestead exemption in the 55-1003 amount, which can increase the total protection for a married couple. Because exemption amounts can be amended, confirm the current figure for your filing date.

Motor-vehicle, wildcard, and personal-property exemptions

Idaho's personal-property exemptions are set out in Idaho Code 11-605 and related sections:

• Motor vehicle: one vehicle up to $10,000 of equity.
• Wildcard: up to $1,500 of any tangible personal property, which can be applied to assets that do not fit another category.
• Household goods and clothing: household furnishings, appliances, clothing, books, pets, and similar items, with a per-item limit of $1,000 and a total cap of $7,500.
• Tools of the trade: up to $10,000 in implements, professional books, business equipment, and tools used in your work.
• Wages: Idaho follows the federal garnishment limits, protecting the greater of 75 percent of disposable weekly earnings or 30 times the federal minimum wage; certain unpaid wages are also exempt up to a statutory annual amount.
• Other: most retirement accounts, public benefits, and certain insurance proceeds are protected.

These statutory figures are subject to amendment, so verify current amounts before relying on them.

The Chapter 7 means test in Idaho

The means test determines whether your income is low enough to file Chapter 7 without a presumption of abuse. The first step compares your household's current monthly income, annualized, to the median family income for an Idaho household of your size, as published by the U.S. Trustee Program (justice.gov/ust). If you are at or below the median, you generally pass the first step. If you are above it, a detailed calculation of allowed expenses and disposable income applies.

For cases filed on or after April 1, 2026, the U.S. Trustee Program lists Idaho's median family income as:

• 1 earner: $73,413
• 2 people: $86,160
• 3 people: $98,381
• 4 people: $119,662
• Add $11,100 for each individual in excess of four.

The U.S. Trustee Program updates these figures periodically, typically about twice a year, so check the current table for your filing date.

Chapter 7 vs. Chapter 13

Chapter 7 is a liquidation. A trustee may sell non-exempt property to pay creditors, and most remaining unsecured debts are discharged, often within a few months. Because Idaho's exemptions, including the large homestead and vehicle amounts, protect a defined level of property, many filers keep everything they own. Chapter 7 suits people with limited income and mostly unsecured debt such as credit cards and medical bills.

Chapter 13 is a reorganization for people with regular income who want to cure a mortgage or car-loan default, or whose means-test calculation raises a presumption of abuse in Chapter 7. You repay some or all of what you owe through a court-approved plan lasting three to five years, then receive a discharge of remaining eligible balances.

In both chapters, filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection efforts, including foreclosure, repossession, lawsuits, and wage garnishment, while the case proceeds. Where a foreclosure or garnishment has already started, get a free bankruptcy evaluation from an Idaho lawyer on Chapter 7 versus Chapter 13 for keeping your home or car (attorney advertising).

Where you file in Idaho

Idaho is a single federal district. All bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Idaho, which operates through divisions in Boise (Southern), Coeur d'Alene (Northern), Moscow (Central), and Pocatello/Twin Falls (Eastern). You file in the division that serves the county where you have lived for the greater part of the last 180 days.

What bankruptcy can and cannot do

Most unsecured debts, such as credit cards, medical bills, and personal loans, are dischargeable. Some obligations generally are not, including most student loans, recent income taxes, child support and alimony, and debts arising from fraud. Credit counseling from an approved agency is required before filing, and a debtor-education course is required before discharge. Bankruptcy has lasting effects on credit and is not the right choice for everyone, so consider consulting a licensed Idaho bankruptcy attorney about your specific situation.

Frequently Asked Questions

Does Idaho use state or federal bankruptcy exemptions?

Idaho has opted out of the federal exemptions. Residents must use Idaho's state exemptions in Idaho Code title 11, chapter 6 and Idaho Code 55-1003, and cannot choose the federal list in 11 U.S.C. 522(d), subject to the federal domicile rules for recent movers.

What is the homestead exemption in Idaho?

Under Idaho Code 55-1003, up to $175,000 of equity in a primary residence. It is a fixed statutory cap, not automatically indexed for inflation, and 2025 legislation lets each spouse claim the full amount. Confirm the current figure for your filing date.

What is the Idaho median income for the means test?

For cases filed on or after April 1, 2026, the U.S. Trustee Program lists Idaho's median family income as $73,413 for 1 person, $86,160 for 2, $98,381 for 3, and $119,662 for 4, adding $11,100 per additional person. These figures update periodically.

Will I lose my house or car in an Idaho bankruptcy?

Often no. Idaho's homestead exemption protects up to $175,000 of home equity and the motor-vehicle exemption protects up to $10,000 of car equity. If your equity is within these limits and you stay current on secured payments, you can typically keep the property. Equity above the limits may be at risk in Chapter 7 but can often be addressed in Chapter 13.

Is the Idaho homestead exemption adjusted for inflation?

No. The $175,000 amount in Idaho Code 55-1003 is a fixed statutory cap that changes only when the legislature amends it, not through automatic annual indexing.

Which bankruptcy court handles my Idaho case?

All Idaho cases are filed in the U.S. Bankruptcy Court for the District of Idaho, which has divisions in Boise, Coeur d'Alene, Moscow, and Pocatello/Twin Falls.

What is the automatic stay?

The automatic stay under 11 U.S.C. 362 takes effect when you file and immediately stops most collection actions, including foreclosure, repossession, lawsuits, and wage garnishment, while your case is pending.

Can bankruptcy erase all of my debts?

No. Most unsecured debts are dischargeable, but obligations such as most student loans, recent taxes, child support, alimony, and debts from fraud generally are not.