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Chapter 7 And Chapter 13 Are The Two Most Common Bankruptcy Filings

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Did you know that federal bankruptcy laws are actually on your side if you need to declare bankruptcy?

If you are in a bit of a pickle and are carrying an overwhelming debt load, high medical bills, serious credit card debt and are getting dunning phone calls from bill collectors, it is time to call a bankruptcy lawyer for help. Federal bankruptcy laws are actually geared to help you out when you’re facing bankruptcy.

The most common bankruptcies filed are Chapter 13 and Chapter 7. Filing a Chapter 7 stops creditor phone calls and discharges some types of unsecured debt. Filing a Chapter 13 stops foreclosure, harassing collection actions and allows you to create a debt repayment place to pay off certain debts. This is not to say that it is easy to declare bankruptcy, because it is not. It is a distressing process and many people are embarrassed to admit they are going to file.

No worries. These days, no one looks at you sideways for declaring bankruptcy. It is what it is. The question you may be struggling with is what type of bankruptcy is the best for your situation? The law has made it harder for some debtors to get rid of their debts under Chapter 7, but some may still be able to do this if they have an income that is under the state’s median income level or they pass a means test. Just ask your Iowa bankruptcy lawyer what the rules are in the state.

If you want a quick and simple and relatively inexpensive way to declare bankruptcy, typically, Chapter 7 will do the trick. This process is there for married couples, partnerships, corporations and individuals. Truth be told, it is best for individuals with limited income and wages and don’t have many assets to protect from liquidation.

For Chapter 7, there is a court-appointed trustee assigned to your file to identify non-exempt assets, and liquidate them to pay your creditors. There are some instances in which you get to keep secured property, but only if you are able to negotiate new debt repayment terms.

Let us say you do not meet the criteria for filing a Chapter 7 bankruptcy. If that is the case, you might find Chapter 13 is a viable alternative. Under a Chapter 13 filing, you may keep your assets, avoid foreclosure on your house, stop creditor calls and repossessions and repay a portion of your debts with a restructured debt repayment plan within 3 to 5 years. A trustee is assigned under a Chapter 13 filing as well, who supervises the debt collection process and distribution of monthly payments.

It is important to know that not all of your debts are done away with under either Chapter 7 or Chapter 13 bankruptcy filings. Your Iowa bankruptcy lawyer will outline what you need to know. Debts you cannot discharge include maintenance for your spouse, child support, any debts owed to certain tax advantage retirement plans, debts acquired as a result of fraud or embezzlement, debts for malicious injury to another person or property, debts that are not laid out in a debt repayment plan, some types of taxes and personal debts for damages caused by a debtor who was DUI.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Posted on Wednesday, July 27th, 2011 and filed under Bankruptcy | Comments Off on Chapter 7 And Chapter 13 Are The Two Most Common Bankruptcy Filings .
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Call A Qualified Bankruptcy Lawyer When Finances Get Out Of Control

Posted by: Admin User

Finances can get out of control for everyone; even the high rollers.

Even if you make money hand over fist, or made money with ease at one time, this isn’t to say that sometimes things happen and finances just get out of control. It happens; to everyone. Consider the story of a man who boasted that he was the world’s top, numero uno real estate agent. At one time, he supposedly had over $2.5 billion in sales over a six-year period. He declared bankruptcy. He was knee deep in the boom times of real estate and had everything a person could possibly want, and then the balloon popped.

The real estate mogul found himself over $50 million in debt and tried selling some of his assets, but only garnered roughly $2.4 million. It wasn’t much, but it was a start, and he thought maybe he could still make ends meet, until his wife filed for divorce. That was the end of his rope. The scenario happens to millions of Americans every day; the millions trying to get from point A to point B and survive.

Bankruptcy can and does happen to anyone. No one is immune when the conditions are right for financial collapse. Circumstances in a person’s life tend to dictate how things will go financially, and if someone is struggling with paying their bills and they lose their job, get ill and need extensive, expensive medical care or their spouse files for divorce, things can tank just about over night. It’s no one’s fault that these things happened; they just did, because that is life.

Another nugget of truth to take from this story is that the real estate market is still shaky, and there are hundreds of thousands of foreclosures making their way through the system, even as you read this article. What does the future look like? Who knows. What will happen, will happen. Those stuck in the middle of the morass can only ride it out and see what happens when the dust settles.

In 2010, foreclosures hit the 1.05 million mark. Twenty six percent of all the homes sold last year were foreclosures, and things are looking about the same for 2011. What’s scary is that nearly 2.9 million homeowners got foreclosure notices in 2010. There may be more in hot water this year, judging from the present state of the economy.

The fact is that the economy is bad and in tough times, things get rough. Riding it out is even tougher and many people may need to contemplate bankruptcy to see light at the end of the tunnel. For help figuring out what your options are, call an experience Iowa bankruptcy lawyer. Your finances could fall flat anytime, no matter who you are, what kind of education you have, whether or not you are making lots of money, or very little. Bankruptcy is the grand leveler of all who dare to stand in its way.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Posted on Friday, July 15th, 2011 and filed under Bankruptcy | Comments Off on Call A Qualified Bankruptcy Lawyer When Finances Get Out Of Control .
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There is a Big Difference Between Unsecured Debt and Secured Debt

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There is often a whole lot of confusion over what the differences are between secured and unsecured debt.

“Bankruptcy proceedings get complicated enough that most people get confused over what the differences are between secured and unsecured debt, or if there are any differences at all. There are definitely differences, and when you speak to an experienced lawyer, this is one of the first conversations you should have,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

One of the main problems with people understanding the bankruptcy jargon is that those familiar with it use it like it was a regular language – and it is, to them. To those facing bankruptcy and trying to cope with their financial distress and figure out what the terms mean, it is just one more thing that alienates them. “Most bankruptcy lawyers will take the time to explain the various terms, as it is something that helps put their clients at ease,” Ahrenholz said.

A secured debt is a loan, and in return for the money, the creditor takes a secure interest, also referred to as a security interest, in the item. “For example, if you have a loan for a house or car,” Ahrenholz said. “Having said that though, just about any loan may be secured, so long as the creditor gets a security interest in whatever the item happens to be.”

The thing people need to remember about secured debts is that the remedy for default is typically seizing the asset, either by foreclosure or repossession. In addition, if a creditor does go that route, they may also be able to recover any financial short fall after the repo or possession. “Since you can’t discharge this, an experienced Iowa bankruptcy lawyer is better able to negotiate with creditors, than you trying to do it on your own,” he said.

Unsecured debt is the result of a contract between a buyer and a creditor, but it is not tied to a security agreement, and does not give the creditor the same options to collect on default of payment that a secured creditor has. “In other words, the debtor is saying they promise to pay it back. Examples of unsecured debt are personal loans, medical bills and credit card debt,” Ahrenholz said. Unsecured debt is discharged in a bankruptcy.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Posted on Thursday, July 7th, 2011 and filed under News and Press | Comments Off on There is a Big Difference Between Unsecured Debt and Secured Debt .
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