Idaho State Bankruptcy Exemptions
§ 55-1003. Homestead exemption limited
A dwelling house or mobile home, and the lands on which said structures are
situated, with a total exemption not to exceed the lesser of: (i) the total net
value of the lands, mobile home, and improvements thereon, or (ii) the sum of
$50,000.
§ 11-207. Restriction on garnishment -- Maximum
(1) Except as provided in subsection (2) of this section, the maximum amount of
the aggregate disposable earnings of an individual for any work week which is
subjected to garnishment shall not exceed (a) twenty-five per cent (25%) of his
disposable earnings for that week, or (b) the amount by which his disposable
earnings for that week exceed thirty (30) times the federal minimum hourly wage
prescribed by 29 U.S.C.A. 206(a)(1) in effect at the time the earnings are
payable, whichever is less. In the case of earnings for any pay period other
than a week, the Idaho commissioner of labor shall by regulation prescribe a
multiple of the federal minimum hourly wage equivalent in effect to that set
forth in (b) of this subsection.
(2) (a) The restrictions of subsection (1) of this section shall not apply in
the case of any order of any court for the support of any person, any order of
any court of bankruptcy under chapter XIII of the Bankruptcy Act, or any debt
due for any state or federal tax.
(b) The maximum part of the aggregate disposable earnings of an individual for
any work week which is subject to garnishment to enforce any order for the
support of any person shall not exceed:
1. Where such individual is supporting his spouse or dependent child, other
than a spouse or child with respect to whose support such order is used, fifty
per cent (50%) of such individual's disposable earnings for that week; and
2. Where such individual is not supporting such a spouse or dependent child
described in paragraph 1., sixty per cent (60%) of such individual's disposable
earnings for that week;
except that with respect to the disposable earnings of any individual for any
work week, the fifty per cent (50%) specified in paragraph 1. shall be deemed
to be fifty-five per cent (55%) and the sixty per cent (60%) specified in
paragraph 2. shall be deemed to be sixty-five per cent (65%), if and to the
extent that such earnings are subject to garnishment to enforce a support order
with respect to a period which is prior to the twelve (12) week period which
ends with the beginning of such work week.
§ 11-603. Property exempt without limitation
An individual is entitled to exemption of the following property:
(1) a burial plot for the individual and his family;
(2) health aids reasonably necessary to enable the individual or a dependent
to work or to sustain health;
(3) benefits the individual is entitled to receive under federal social
security, or veteran's benefits, except the restrictions under this subsection
shall not apply to enforcement of an order for the support of any person by
execution, garnishment, or wage withholding under chapter 12, title 7, Idaho
Code;
(4) benefits the individual is entitled to receive under federal, state, or
local public assistance legislation;
(5) benefits payable for medical, surgical, or hospital care;
(6) state unemployment compensation to the extent provided for in section
72-1375, Idaho Code.
§ 11-604. Property exempt to extent reasonably necessary for support
(1) An individual is entitled to exemption of the following property to the
extent reasonably necessary for the support of him and his dependents:
(a) benefits paid or payable by reason of disability or illness;
(b) money or personal property received, and rights to receive money or
personal property for alimony, support, or separate maintenance;
(c) proceeds of insurance, a judgment, or a settlement, or other rights
accruing as a result of bodily injury of the individual or of the wrongful
death or bodily injury of another individual of whom the individual was or is a
dependent; and
(d) proceeds or benefits paid or payable on the death of an insured, if the
individual was the spouse or a dependent of the insured.
(2) The phrase "property to the extent reasonably necessary for the support of
him and his dependents" means property required to meet the present and
anticipated needs of the individual and his dependents, as determined by the
court after consideration of the individual's responsibilities and all the
present and anticipated property and income of the individual, including that
which is exempt.
(3) The exemptions allowed by this section shall be lost immediately upon the
commingling of any of the funds or amounts described in this section with any
other funds.
§ 11-604A. Pension money exempt
(1) It is the policy of the state of Idaho to ensure the well-being of its
citizens by protecting retirement income to which they are or may become
entitled. For that purpose generally and pursuant to the authority granted to
the state of Idaho under 11 U.S.C. section 522(b)(2), the exemptions in this
section relating to retirement benefits are provided.
(2) Unless otherwise provided by federal law, any money received by any citizen
of the state of Idaho as a pension from the government of the United States,
whether the money be in the actual possession of a citizen or be deposited or
loaned, shall be exempt from execution, attachment, garnishment, seizure, or
other levy by or under any legal process whatever. When a debtor dies, or
absconds, and leaves his family any money exempted by this subsection, the
money shall be exempt to the family as provided in this subsection. This
subsection shall not apply to any child support collection actions, if
otherwise permitted by federal law.
(3) The right of a person to a pension, annuity, or retirement allowance or
disability allowance, or death benefits, or any optional benefit, or any other
right accrued or accruing to any citizen of the state of Idaho under any
employee benefit plan, and any fund created by the benefit plan or arrangement,
shall be exempt from execution, attachment, garnishment, seizure, or other levy
by or under any legal process whatever. This subsection shall not apply to any
child support collection actions, if otherwise permitted by federal law. This
subsection shall permit benefits under any such plan or arrangement to be
payable to a spouse, former spouse, child, or other dependent of a participant
in the plan to the extent expressly provided for in a qualified domestic
relations order that meets the requirements for those orders under the plan,
or, in the case of benefits payable under a plan described in sections 403(b),
408, 408A or 457 of the Internal Revenue Code of 1986, as amended, or section
409 of the Internal Revenue Code as in effect before January 1, 1984, to the
extent provided in any order issued by a court of competent jurisdiction that
provides for maintenance or support. This subsection shall not prohibit actions
against an employee benefit plan or fund for valid obligations incurred by the
plan or fund for the benefit of the plan or fund.
(4) For the purposes of this section, the term "employee benefit plan" means:
(a) Assets held, payments made, and amounts payable under a stock bonus,
pension, profit-sharing, annuity, or similar plan or contract, providing
benefits by reason of age, illness, disability, or length of service;
(b) Any plan or arrangement, whether funded by a trust, an annuity contract, an
insurance contract, or an individual account, that is described in sections
401(a), 403(a), 403(b), 408, 408A or 457 of the Internal Revenue Code of 1986,
as amended, or section 409 of the Internal Revenue Code as in effect before
January 1, 1984. The term "employee benefit plan" also means any rights
accruing on account of money paid currently or in advance pursuant to a college
savings program described in chapter 54, title 33, Idaho Code.
(5) An employee benefit plan shall be deemed to be a spendthrift trust,
regardless of the source of funds, the relationship between the beneficiary and
the trustee or custodian of the plan, or the ability of the debtor to withdraw,
borrow or otherwise become entitled to benefits from the plan before
retirement. This subsection shall permit benefits under any such plan or
arrangement to be payable to a spouse, former spouse, child, or other dependent
of a participant in the plan to the extent expressly provided for in a
qualified domestic relations order that meets the requirements for those orders
under the plan, or, in the case of benefits payable under a plan described in
sections 403(b), 408, 408A or 457 of the Internal Revenue Code of 1986, as
amended, or section 409 of the Internal Revenue Code as in effect before 1984,
to the extent provided in any order issued by a court of competent jurisdiction
that provides home maintenance or support.
(6) Unless contrary to applicable federal law, nothing contained in subsection
(3), (4) or (5) of this section shall be construed as a termination or
limitation of a spouse's community property interest in an individual
retirement account held in the name of, or on account of, the other spouse, the
"account holder spouse." At the death of the nonaccount holder spouse, the
account holder spouse may transfer or distribute the community property
interest of the nonaccount holder spouse in the account holder spouse's
individual retirement account to the nonaccount holder spouse's estate,
testamentary trust, inter vivos trust, or other successor or successors
pursuant to the last will of the nonaccount holder spouse, or the law of
intestate succession if applicable, and that distributee may, but shall not be
required to, obtain an order from a court of competent jurisdiction, including
a nonjudicial dispute resolution agreement, or other order, entered to confirm
the distribution. For purposes of subsection (3) of this section, the
distributee of the nonaccount holder spouse's community property interest in an
individual retirement account shall be considered a person entitled to the full
protection of subsection (3) of this section. The nonaccount holder spouse's
consent to a beneficiary designation by the account holder spouse with respect
to an individual retirement account shall not, absent clear and convincing
evidence to the contrary, be deemed a release, gift, relinquishment,
termination, limitation or transfer of the nonaccount holder spouse's community
property interest in an individual retirement account. For purposes of this
subsection, the term "nonaccount holder spouse" means the spouse of the person
in whose name the individual retirement account is maintained. The term
"individual retirement account" includes an individual retirement account and
an individual retirement annuity both as described in section 408 of the
Internal Revenue Code of 1986, as amended, a Roth individual retirement account
as described in section 408A of the Internal Revenue Code of 1986, as amended,
and an individual retirement bond as described in section 409 of the Internal
Revenue Code as in effect before January 1, 1984.
§ 11-605. Exemptions of personal property subject to value limitations
(1) An individual is entitled to exemption of the following property to the
extent of a value not exceeding five hundred dollars ($ 500) on any one (1)
item of property and not to exceed a total value of five thousand dollars ($
5,000) for all items exempted under this subsection:
(a) Household furnishings, household goods, and appliances held primarily for
the personal, family, or household use of the individual or a dependent of the
individual;
(b) If reasonably held for the personal use of the individual or a dependent,
wearing apparel, animals, books, and musical instruments; and
(c) Family portraits and heirlooms of particular sentimental value to the
individual.
(2) An individual is entitled to exemption of jewelry, not exceeding one
thousand dollars ($ 1,000) in aggregate value, if held for the personal use of
the individual.
(3) An individual is entitled to exemption, not exceeding one thousand five
hundred dollars ($ 1,500) in aggregate value, of implements, professional
books, and tools of the trade; and to an exemption of one (1) motor vehicle to
the extent of a value not exceeding three thousand dollars ($ 3,000).
(4) All courthouses, jails, public offices and buildings, schoolhouses, lots,
grounds and personal property appertaining thereto, the fixtures, furniture,
books, papers and appurtenances belonging and pertaining to the courthouse,
jail and public offices belonging to any county of this state, or for the use
of schools, and all cemeteries, public squares, parks and places, public
buildings, town halls, markets, buildings for the use of fire departments and
military organizations, and the lots and grounds thereto belonging and
appertaining, owned or held by any town or incorporated city, or dedicated by
such town or city to health, ornament or public use, or for the use of any fire
or military company organized under the laws of this state. No article or
species of property mentioned in this section is exempt from execution issued
upon a judgment recovered for its price or upon a mortgage thereon.
(5) All arms, uniforms and accouterments required for the use of an individual
as a peace officer, a member of the national guard or military service.
(6) A water right not to exceed one hundred sixty (160) inches of water used for
the irrigation of lands actually cultivated by the individual, and the crop or
crops growing or grown on fifty (50) acres of land, leased, owned or possessed
by an individual cultivating the same, provided, that the amount of the crops
so exempted shall not exceed the value of one thousand dollars ($ 1,000).
(7) An individual is entitled to exemption of one (1) firearm valued at less
than five hundred dollars ($ 500).
(8) Any unmatured life insurance contract owned by an individual, other than a
credit life insurance contract.
(9) An individual's aggregate interest, not to exceed five thousand dollars ($
5,000) in any accrued dividend or interest under, or loan value of, any
unmatured life insurance contract owned by the individual under which the
insured is the individual or a person of whom the individual is a dependent.
(10) An individual's aggregate interest in any tangible personal property, not
to exceed the value of eight hundred dollars ($ 800).
§ 11-606. Tracing exempt property
(1) If property, or a part thereof, that could have been claimed as exempt,
such as, a burial plot under subsection (1) of section 11-603, Idaho Code, a
health aid under subsection (2) of section 11-603, Idaho Code, or personal
property subject to a value limitation under paragraph (a) or (b) of subsection
(1) or subsection (3) of section 11-605, Idaho Code, has been taken by
condemnation, or has been lost, damaged, or destroyed, and the owner has been
indemnified therefore, the individual is entitled to an exemption of proceeds
that are traceable for three (3) months after the proceeds are received. The
exemption of proceeds under this subsection does not entitle the individual to
claim an aggregate exemption in excess of the value limitation otherwise
allowable under section 11-605, Idaho Code.
§ 41-1833. Exemption of proceeds -- Life insurance
(1) If a policy of insurance, whether heretofore or hereafter issued, is
effected by any person on his own life, or on another life, in favor of a
person other than himself, or, except in cases of transfer with intent to
defraud creditors, if a policy of life insurance is assigned or in any way made
payable to any such person, the lawful beneficiary or assignee thereof, other
than the insured or the person so effecting such insurance or executors or
administrators of such insured or the person so effecting such insurance, shall
be entitled to its proceeds and avails against the creditors and
representatives of the insured and of the person effecting the same, whether or
not the right to change the beneficiary is reserved or permitted, and whether
or not the policy is made payable to the person whose life is insured if the
beneficiary or assignee shall predecease such person, and such proceeds and
avails shall be exempt from all liability for any debt of the beneficiary
existing at the time the policy is made available for his use: provided, that
subject to the statute of limitations, the amount of any premiums for such
insurance paid with intent to defraud creditors, with interest thereon, shall
inure to their benefit from the proceeds of the policy; but the insurer issuing
the policy shall be discharged of all liability thereon by payment of its
proceeds in accordance with its terms, unless, before such payment, the insurer
shall have received written notice at its home office, by or in behalf of a
creditor, of a claim to recover for transfer made or premiums paid with intent
to defraud creditors, with specification of the amount claimed.
(2) For the purposes of subsection (1) above, a policy shall also be deemed to
be payable to a person other than the insured if and to the extent that a
facility-of-payment clause or similar clause in the policy permits the insurer
to discharge its obligation after the death of the individual insured by paying
the death benefits to a person as permitted by such clause.
(3) This section shall not be affected by the terms of section 15-6-107, Idaho
Code.
§ 41-1834. Exemption of proceeds -- Disability insurance
Except as may otherwise be expressly provided by the policy or contract, the
proceeds or avails of all contracts of disability insurance and of provisions
providing benefits on account of the insured's disability which are
supplemental to life insurance or annuity contracts heretofore or hereafter
effected shall be exempt from all liability for any debt of the insured, and
from any debt of the beneficiary existing at the time the proceeds are made
available for his use.
This section shall not be affected by the terms of section 15-6-107, Idaho
Code.
§ 41-1835. Exemption of proceeds -- Group insurance
(1) A policy of group life insurance or group disability insurance or the
proceeds thereof payable to the individual insured or to the beneficiary
thereunder, shall not be liable, either before or after payment, to be applied
by any legal or equitable process to pay any debt or liability of such insured
individual or his beneficiary or of any other person having a right under the
policy. The proceeds thereof, when not made payable to a named beneficiary or
to a third person pursuant to a facility-of-payment clause, shall not
constitute a part of the estate of the individual insured for the payment of
his debts.
(2) This section shall not apply to group insurance issued pursuant to this code
to a creditor covering his debtors, to the extent that such proceeds are
applied to payment of the obligation for the purpose of which the insurance was
so issued.
(3) This section shall not be affected by the terms of section 15-6-107, Idaho
Code.
§ 41-1836. Exemption of proceeds -- Annuity contracts -- Assignability of rights
(1) The benefits, rights, privileges and options which under any annuity
contract heretofore or hereafter issued are due or prospectively due the
annuitant, shall not be subject to execution nor shall the annuitant be
compelled to exercise any such rights, powers, or options, nor shall creditors
be allowed to interfere with or terminate the contract, except:
(a) As to amounts paid for or as premium on any such annuity with intent to
defraud creditors, with interest thereon, and of which the creditor has given
the insurer written notice at its home office prior to the making of the
payments to the annuitant out of which the creditor seeks to recover. Any such
notice shall specify the amount claimed or such facts as will enable the
insurer to ascertain such amount, and shall set forth such facts as will enable
the insurer to ascertain the annuity contract, the annuitant and the payments
sought to be avoided on the ground of fraud.
(b) The total exemption of benefits presently due and payable to any annuitant
periodically or at stated times under all annuity contracts under which he is
an annuitant, shall not at any time exceed one thousand two hundred fifty
dollars ($ 1,250) per month for the length of time represented by such
installments, and that such periodic payments in excess of one thousand two
hundred fifty dollars ($ 1,250) per month shall be subject to garnishee
execution to the same extent as are wages and salaries.
(c) If the total benefits presently due and payable to any annuitant under all
annuity contracts under which he is an annuitant, shall at any time exceed
payment at the rate of one thousand two hundred fifty dollars ($ 1,250) per
month, then the court may order such annuitant to pay to a judgment creditor or
apply on the judgment, in installments, such portion of such excess benefits as
to the court may appear just and proper, after due regard for the reasonable
requirements of the judgment debtor and his family, if dependent upon him, as
well as any payments required to be made by the annuitant to other creditors
under prior court orders.
(2) If the contract so provides, the benefits, rights, privileges or options
accruing under such contract to a beneficiary or assignee shall not be
transferable nor subject to commutation, and if the benefits are payable
periodically or at stated times, the same exemptions and exceptions contained
herein for the annuitant, shall apply with respect to such beneficiary or
assignee.
(3) An annuity contract within the meaning of this section shall be any
obligation to pay certain sums at stated times, during life or lives, or for a
specified term or terms, issued for a valuable consideration, regardless of
whether or not such sums are payable to one (1) or more persons, jointly or
otherwise, but does not include payments under life insurance contracts at
stated times during life or lives, or for a specified term or terms.
(4) This section shall not be affected by the terms of section 15-6-107, Idaho
Code.
§ 41-3218. Benefits not attachable
No money or other benefit, charity, relief or aid to be paid, provided or
rendered by any society, shall be liable to attachment, garnishment or other
process, or to be seized, taken, appropriated or applied by any legal or
equitable process or operation of law to pay any debt or liability of a member
or beneficiary, or any other person who may have a right thereunder, either
before or after payment by the society.
§ 72-802. Compensation not assignable -- Exempt from execution
No claims for compensation under this law shall be assignable, and all
compensation and claims therefor shall be exempt from all claims of creditors,
except the restrictions under this section shall not apply to enforcement of an
order of any court for the support of any person by execution, garnishment or
wage withholding under chapter 12, title 7, Idaho Code.
§ 72-1375. Protection of rights and benefits
(1) Any agreement to waive, release, or commute any right to benefits or other
rights under this chapter shall be void. Any agreement by any individual
performing services for a covered employer to pay all or any portion of any
contributions or penalties required under this chapter from such employer,
shall be void. No covered employer shall directly or indirectly make or require
or accept any deduction from wages to finance the contributions required from
him, require or accept any waiver of any right under this chapter by any
individual rendering service for him, discriminate in regard to the hiring or
tenure of work or any term or condition of work of any individual on account of
his claiming benefits under this chapter, or in any manner obstruct or impede
the claiming of benefits. Any employer or officer or agent of an employer who
violates any provision of this subsection shall, for each offense, be guilty of
a misdemeanor.
(2) No individual claiming benefits shall be charged fees or costs of any kind
in any proceeding under this chapter by the commission, the director, any of
its or his employees or representatives, or by any court or any officer
thereof, except that a court may assess costs if the court determines that the
proceedings have been instituted or continued without reasonable ground. Any
individual claiming benefits in any proceeding before the department, the
commission, or a court may be represented by counsel or other duly authorized
agent. Any person who violates any provision of this subsection shall, for each
such offense, be guilty of a misdemeanor.
(3) Any assignment, pledge, or encumbrance of any right to benefits which are or
may become due or payable under this chapter shall be void; and such rights to
benefits shall be exempt from levy, execution, attachment, or an order for the
payment of attorney's fees. Benefits received by any individual, so long as
they are not mingled with other funds of the recipient, shall be exempt from
any remedy whatsoever for the collection of debts. Any waiver of any exemption
provided for in this subsection shall be void.
(4) The provisions of this section shall not apply to any action taken pursuant
to section 72-1365(2), Idaho Code.
§ 11-603. Property exempt without limitation
An individual is entitled to exemption of the following property:
(1) a burial plot for the individual and his family;
(2) health aids reasonably necessary to enable the individual or a dependent to
work or to sustain health;
(3) benefits the individual is entitled to receive under federal social
security, or veteran's benefits, except the restrictions under this subsection
shall not apply to enforcement of an order for the support of any person by
execution, garnishment, or wage withholding under chapter 12, title 7, Idaho
Code;
(4) benefits the individual is entitled to receive under federal, state, or
local public assistance legislation;
(5) benefits payable for medical, surgical, or hospital care;
(6) state unemployment compensation to the extent provided for in section
72-1375, Idaho Code.
§ 59-1317. Rights to benefits inalienable
(1) The right of a person to any benefits under this chapter and the money in
any fund created by this chapter shall not be assignable or subject to
execution, garnishment or attachment or to the operation of any bankruptcy or
insolvency law.
(2) Notwithstanding subsection (1) of this section, the benefits of a member or
alternate payee shall be subject to garnishment, execution, or wage withholding
under chapter 12, title 7, Idaho Code, for the enforcement of an order for the
support of a minor child.
(3) Notwithstanding subsection (1) of this section, prior to July 1, 1998,
should a court order direct distribution or partial distribution of a member
benefit defined in either chapter 13, title 59, Idaho Code, or chapter 14,
title 72, Idaho Code, be made to the member's spouse or former spouse, that
member's full benefit entitlement will be forwarded to the court for
distribution.
(4) Notwithstanding subsection (1) of this section, on or after July 1, 1998,
should a court order direct distribution or partial distribution of a member's
benefit defined in either chapter 13, title 59, Idaho Code, or chapter 14,
title 72, Idaho Code, be made to the member's spouse or former spouse, the
court order must be an approved domestic retirement order and shall comply with
the requirements of sections 59-1319 and 59-1320, Idaho Code.
(5) Notwithstanding subsection (1) of this section, should a court order
establish a trust pursuant to section 15-5-409, Idaho Code, the full benefit
entitlement will be forwarded to the trustee, naming the trustee as payee.
§ 72-1422. Benefits exempt from execution -- Not assignable
No benefits or payments payable under the provisions of this chapter shall be
subject to execution, nor assignable, nor shall the same be hypothecated or in
any manner encumbered.
§ 50-1517. Benefits exempt from legal process
No benefits or payments payable under the provisions of sections 50-1501
through 50-1524 shall be subject to execution, nor assignable, nor shall be
hypothecated or in any manner encumbered.
Note: Exemptions may have changed since our last update. For the latest updates on these property exemptions, speak to a local bankruptcy lawyer.
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