Alaska bankruptcy laws: What are the Laws Regarding Bankruptcies in the State of Alaska
The state of Alaska safeguards a portion or your entire property from being taken away by the bankruptcy trustee or creditors in the Chapter 7 bankruptcy. On the other hand, Chapter 13 bankruptcy, a debtor is typically permitted to retain all their property and assets. Specific exceptions can apply, and as such, it is recommended to get in touch with a bankruptcy lawyer in Alaska to know the assets that will be safe when you file bankruptcy in the state. The major bankruptcy exceptions in Alaska are as follows:
- Homestead or real estate
A maximum of 67,500 USD of your home’s equity can be protected.
A maximum of 3,750 USD for one motor vehicle's equity, which is not more than 25,000 USD in value may be protected.
Musical instruments, family heirlooms, books, clothing, goods, and household goods that value up to a maximum of 3,750 can be safeguarded.
As the process of filing bankruptcy in Alaska is quite complicated, most people do so with the help of a bankruptcy lawyer or attorney.
The bankruptcy filing in Alaska
Individuals, as well as, business file bankruptcy in Alaska in any branch of a Bankruptcy Court in the United States. You can file bankruptcy in any of the divisional branches located in places like Ketchikan, Juneau, Fairbanks, and Anchorage. You may file bankruptcy by mail or in person.
It makes sense to be aware of Chapter one is qualified for and the one that will benefit him/her the most. It is also crucial to determine whether a debtor benefits from filing bankruptcy at all.
Corporate bankruptcy in Alaska
Any business with high debt in the market should approach a good corporate bankruptcy attorney and discuss the following two filing alternatives.
Chapter 11 bankruptcy
Such bankruptcy leads to company restructuring. Businesses enter into a discussion with the court to formalize a plan for their debt repayment and reorganizing their corporate servicemen, revenues, and assets at the same time. It is done to indicate to the company creditors that the business will continue to function.
Chapter 7 bankruptcy
Businesses in Alaska, which are not convinced of generating adequate revenue to survive in the future or cannot sustain a Chapter 11 Bankruptcy, may go for Chapter 11 Bankruptcy. Such a bankruptcy entails liquidation of all its assets while the company's creditors are paid using that cash. However, stockholders of such a company rarely get reimbursed for their investments as low-risk investors such as banks get back their money first.
Personal bankruptcy in Alaska
Even individuals may go by hard times and can file for bankruptcy in Alaska.
Chapter 7 Bankruptcy
The choice is most appropriate for individuals who have plenty of unsecured debt, but the property is inadequate. All the assets of such debtors are liquidated while the money procured is used for debt payment.
Chapter 13 Bankruptcy
As Chapter 7 Bankruptcy is applicable only for those persons whose earnings are less than the median income of Alaska or qualify the Alaska Means Test, there is another bankruptcy alternative, which repays creditors with discretionary income instead of liquidated assets. As the earning of money is slow in this income, the process of debt repayment takes a longer time, typically around 2-3 years. However, participants can retain a majority of their property later on.
Chapter 11 Bankruptcy
Such a bankruptcy option is also available for persons with substantial assets or earnings who have incredibly high debt and are not eligible for Chapter 13 Bankruptcy under the bankruptcy law of Alaska.