Bankruptcy Court District of New Hampshire Local Rules
The federal Bankruptcy Code sets guidelines that every debtor must follow in order to successfully complete a bankruptcy case. The Bankruptcy Code allows states to institute certain rules that will apply locally to their own bankruptcy courts. Debtors filing for bankruptcy in the U.S. Bankruptcy Court for the District of New Hampshire must comply with the following local rules.
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Means Test
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To file for Chapter 7 bankruptcy, the debtor must pass a qualifying test. The debtor compares his family income with the median family income for a family of the same size in the state of New Hampshire. If the debtor's family income is below the state median, he can file for Chapter 7 bankruptcy.
As of 2010, the Census Bureau listed New Hampshire's median family incomes as $51,332 for a single earner; $63,976 for a family of two; $79,385 for a family of three; and $93,592 for a family of four. Add $7,500 for each family member in excess of four. If the debtor's family income is less than the state median, he passes the means test.
If the debtor's family income is above the state median, he must calculate his monthly disposable income. Monthly disposable income equals monthly income minus allowed monthly expenses. If the debtor's monthly disposable income is less than $100, the debtor passes the means test. If the debtor's monthly disposable income is more than $100, but that amount would not be enough to pay at least 25 percent of his debts over the next five years, the debtor passes the means test and can file for Chapter 7. If the debtor does not qualify for Chapter 7 bankruptcy, he must file for Chapter 13 if he wants to file for bankruptcy at all. In a Chapter 13 case, the debtor will spend the next three to five years repaying his creditors.
Local Rules
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The U.S. Bankruptcy Court for the District of New Hampshire requires that bankruptcy petitions filed in its court include: a $299 filing fee; indication of Chapter 7 bankruptcy; last four digits of Social Security number; list of creditors in matrix format; debtor's signature; attorney's disclosure of compensation; and a certificate of credit counseling. Schedules must be filed listing the debtor's exempt and non-exempt property. A trustee will be appointed, and the trustee will sell the debtor's non-exempt property. The proceeds of the sale will pay a portion of the debtor's creditors.
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Exemptions
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New Hampshire exempt property includes homestead up to $100,000; clothing; beds, bedding, and cooking utensils; furniture up to $3,500; refrigerator; cooking and heating stoves; sewing machine; provisions and fuel up to $400; books up to $800; church pew; automobile up to $4,000; jewelry up to $500; other property up to $1,000; burial plot; up to $7,000 in any property for any unused amount allowed for tools of the trade, jewelry, furniture, books, food and fuel or automobile; wages; pensions; public benefits; tools of the trade up to $5,000; and insurance. Consult state laws for a complete list. New Hampshire also allows its debtors to choose between state and federal exemptions.
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References
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