Veterans facing bankruptcy typically ask if their benefits should be included on Schedule 1.

Schedule 1 is a form required by the bankruptcy court, and it is otherwise referred to as Current Income of Individual Debtor. If you are a veteran, and are filing for bankruptcy protection under Chapter 13 or Chapter 7, then this form must be included. If you have a spouse, there is a place for them to be added on the form. While these forms may seem complex, if they are discussed with a qualified Iowa bankruptcy lawyer, most of the questions would be clearly answered.

As with many rules and regulations, there are some exemptions to this rule. In this instance, there are certain items that are considered to be exempt from liquidation under a Chapter 7 bankruptcy. Those exemptions include alimony, child support, Social Security, unemployment and veteran’s benefits. Even though the veteran’s benefits are exempt, they are still used to calculate a debtor’s financial situation.

For example, if a veteran is getting regular wages, those need to be listed in Schedule I as the gross amount along with any overtime. Any payroll deductions must be taken off wages for the net take home pay. For items 7 to 13, if the veteran debtor has other forms of income, these must be listed. Section 11 would be the area in which to include veteran’s benefits, on the line that asks for ‘Other Monthly Income.’

If a veteran is in a situation where Veteran’s Affairs is only paying them benefits temporarily for a disability, such as an illness that they will recover from, they need to know when the payments end within the year. Then, they would fill in line 17 on Schedule 1 outlining the reasons the benefit is temporary. Again, theses forms can be filled out with the help of an Iowa bankruptcy lawyer.

While filling out all the forms may seem unnecessary, they are required in order to match them up with the means test that all debtors must go through to determine their eligibility for filing bankruptcy under Chapter 7 or Chapter 13. There is always the possibility that an applicant does not qualify, and this is something that can be figured out with the assistance of a skilled Iowa bankruptcy lawyer. For those that do not qualify for Chapter 13, they may instead, be eligible for Chapter 7. It all depends on the means test and the corollary information filed to initiate the process of seeking bankruptcy protection.

Although Schedule I is used for both Chapter 7 and Chapter 13, the Chapter 13 forms will demonstrate to the trustee how much money is being earned in the household. This, when paired with Schedule J listing debtor’s expenses, will show if there is enough income to pay back some of the debt or not.

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.

In today’s high tech era, many people wonder if they may file for Chapter 7 bankruptcy electronically. Yes, they can.

It used to be that filing for a Chapter 7 bankruptcy was a very long process and considered to be expensive. The main reason it was expensive was the amount of running around the debtor had to do, making hundreds of photocopies of various documents and ensuring they were mailed to every creditor you owed money. For some, that was a long list and postage added to their expenses. While much of this running around still needs to be done, depending on the circumstances of the case, thanks to technology, debtors may file from home using their personal computer.

It should be understood that a Chapter 7 bankruptcy, also referred to as a liquidation bankruptcy, banishes most debts. For the exceptions, you would need to speak with an experienced Iowa bankruptcy lawyer. That out of the way, and knowing you are eligible to file, you may now electronically sign and file a Chapter 7 bankruptcy petition.

Following that, the process from start to eventual finish, is the same. Once the debtor had filed, all the applicant’s assets become the property of the bankruptcy estate, and a trustee is assigned to administer that estate and sell nonexempt property to pay unsecured creditors.

Many debtors wishing to file electronically ask the about the requirement that bankruptcy documents must be signed, and whether or not by filing via the Internet would be committing perjury. While the law does specifically state that each debtor must sign their petition, those filing electronically are assigned a login and unique password that becomes their signature. Your Iowa bankruptcy lawyer will also instruct you that if you efile, your documents need to have /s/ on them, followed by your typed name.

In the United States, efiling is done under the auspices of a program called the Case Management/Electronic Case Filing system. This system is under the purview of the federal judiciary, and using this system allows a debtor to submit just about every item they need relevant to their case 24/7.

Many debtors are concerned about the lack of privacy when it comes to filing a Chapter 7 bankruptcy, as once they do file it becomes a matter of public record. Anyone may access the online, signed forms through a system called the Public Access to Court Electronic Records (PACER). This is largely used as a search program, and debtors cannot file their bankruptcy documents this way. For more information on what this may mean to you, speak to a seasoned Iowa bankruptcy lawyer.

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.

Sometimes life happens, and after a debtor files bankruptcy they get injured and run up medical bills. Can they add those bills to their bankruptcy filing?

This is a good question, and the answer is that it would depend on what kind of bankruptcy is filed. There are two commonly filed bankruptcies, Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is usually the quickest and easiest form of bankruptcy. A Chapter 13, also called the wage earners plan, lets a debtor with a regular paycheck create a repayment plan to get rid of part of or all of their debts during a three to five year period.

In the case of a Chapter 7 bankruptcy, if medical care was provided before the debtor filed, those debts are considered to be a part of the bankruptcy process. In that case, they would be discharged. On the other hand, if the medical care was rendered after a Chapter 7 bankruptcy is filed, that debt is not a part of the proceeding. This means the debtor would have to pay the bill on their own.

No one can predict when they are going to be hurt and need to go to the hospital or need on-going medical care. Unexpected bills happen to everyone from time to time. This means you need to move forward with caution when filing. After you have filed a Chapter 7, you must wait eight years before filing another Chapter 7. If you are unable to or do not want to pay medical creditors, they have the option to pursue filing a lawsuit against you. If they are successful, they may be able to foreclose on your property, attach liens, garnish wages or seize assets.

In a Chapter 13 bankruptcy, your disposal income is a part of the process of bankruptcy, and it is used to make monthly payments in accordance with the repayment plan you submitted to the courts. In other words, it is an ongoing plan, and that means you may amend the schedule as you move forward to include medical debts. They are prioritized and added in to the order of payments. Any unpaid, unsecured debt, such as medical bills may be discharged.

Even though it is possible to add medical debt repayment to a Chapter 13, there are other consequences. The biggest one is the added expense you face to try and meet your debt repayment plan. If you are unable to pay, or miss payments, the plan may be dismissed. This would put you right back where you started from in the first place.

There are exceptions to be considered in either instance, and it is wise to contact a qualified Iowa bankruptcy lawyer and find out what options are open to you in your particular case.

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.

Individuals considering whether or not to file bankruptcy must take credit counseling within six months prior to filing.

There are some limited exceptions to the mandate that potential bankruptcy filers take a credit counseling course within six months before filing, noted Waterloo bankruptcy lawyer Kevin Ahrenholz. Those exceptions need to be discussed as part of the process prior to filing. Additionally, approved bankruptcy credit counseling organizations are not the same in each state, and usually there is a small fee for pre-bankruptcy counseling. However, the fee may be waived based on the person’s ability to pay. A waiver request may be made before counseling begins.

Many individuals about to go into credit counseling ask how long the session lasts and whether or not they need to be present with a counselor to meet the Court’s requirements when filing for bankruptcy. The typical counseling session is approximately one hour to an hour and a half, noted Ahrenholz. It may be done in person, online or by phone. The session includes discussion of alternatives to filing, offers an evaluation of an individual’s financial situation, helps the person work out a budget plan and provides a certificate of completion.

The certificate of completion must be given to a bankruptcy attorney, as it is filed with the bankruptcy petition to show the court the credit counseling requirement has been completed. If a debt management plan was created during the credit counseling session, it too must be included for the court’s records.

There are many different types of documents that need to be filed when a debtor opts to file for bankruptcy, and part of the process of filing is determining which Chapter the debtor should file under. Chapter 7 is not for everyone and neither is Chapter 13. The Chapter a debtor files under, with the assistance of a Waterloo bankruptcy attorney is chosen based on the circumstances of the case at hand.

A debtor does not just walk into a bankruptcy attorney’s office and indicate they want to file bankruptcy, not without an extensive conversation with the attorney about alternatives, credit counseling, assets, whether or not they have a job with a regular income, the possibility of drafting a repayment plan or the knowledge about what happens when someone does declare bankruptcy.

While the decision to file bankruptcy is difficult for many, Ahrenholz noted, it is something that can happen to anyone. With the assistance of an experienced Waterloo bankruptcy attorney, a debtor has a brighter financial future in store for them when their bankruptcy is eventually discharged.

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.

While debt reduction companies sound like a good idea, most of them are not.

There are a number of debt reduction companies in the marketplace that say they can negotiate you a lower interest rate, cut what you owe by at least 50 percent and not affect your credit rating. It does sound good. However, these agencies often do not deliver what they promise, and there is a difference between bankruptcy and debt reduction.

For those individuals who owe more than they can pay, finding help through a debt reduction company or declaring bankruptcy are two of the leading options available to them. However, it is wise to know the differences before you proceed. Bankruptcy is a legal option that lets debtors either eliminate all or most of their debts via filing a Chapter 7 or Chapter 13 bankruptcy. Typically Chapter 7 clears all debts. Chapter 13 is a renegotiated debt with a more affordable payment.

Each state has different bankruptcy laws, and so it is wise to speak with an Iowa bankruptcy lawyer to understand what your options are in Iowa. During that discussion, you will find out if bankruptcy will help you with your particular circumstances. While declaring bankruptcy does provide financial relief, there are consequences. The biggest one is the reduction of your credit score that remains on your record for up to ten years.

If you are considering debt reduction, also referred to as consolidation, with a company that says it can help you, you will discover they help by combining all your payments into one payment a month, usually lower than what you currently pay. This sounds good. However, most of these types of companies do not have a debtor’s best interests at heart. Their main goal seems to be scaring the debtor into using their services by telling them how bad their credit report will be, which is a given, even if you declare bankruptcy. This is not news.

Most of these companies are able to come up with a lower monthly total, because it is spread out over a much longer period of time. This means you will pay quite a lot more to retire your debt. While this option might suit you, and you may not mind paying back more over a longer period of time, it is wise to consider both bankruptcy and debt reduction before making any final decisions. If you are not certain which route to take, consider speaking with a qualified Iowa bankruptcy lawyer.

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.

Filing for Chapter 7 does take time. It should never be viewed as an easy way out of debt.

Des Moines bankruptcy lawyer Kevin Ahrenholz indicates that many debtors feel they are in a hopeless situation and have nowhere to turn. They think filing Chapter 7 bankruptcy is the answer to all their problems. However, filing Chapter 7 may create a problem for them that they need to consider before filing.

Declaring bankruptcy remains on a debtor’s credit report for ten years. This means their credit score, often referred to as a FICO score may drop by as much as 200 points. FICO stands for Fair, Isaac and Company, one of the first credit score companies, founded in 1956. A drop such as that may mean getting a loan or other forms of credit will be difficult, and in some instances, impossible. If there are other alternatives at a debtor’s disposal, it may be worth trying those first.

Ahrenholz discusses a variety of alternatives debtors may wish to try before filing for bankruptcy. One of them is creating a budget. Often a debtor finds a detailed budget focuses on unnecessary expenses. The time involved in tracking all expenses, no matter how small they may seem for at least two months, will give the debtor an idea of where they can cut back.

An in-depth analysis of the results of tracking expenses will clearly show if more money is being spent than made, thus alerting the debtor to areas they may eliminate or reduce spending. Also try to find additional ways to increase the monthly paycheck, and this may assist the debtor to get his debts under control, or at the very least, manageable. While the budget may be on paper, the changes made often translate well into real life spending.

Another strategy that Ahrenholz says his clients may attempt is negotiating with lenders. This is very effective for those who are facing a temporary setback, and have always paid their bills on time. If an individual has a good payment record, many creditors, once they understand the nature of the problem, will lower monthly payments or extend the payment time. It is worth trying, and may make a difference to an individual’s overall financial picture.

Debt consolidation helps a debtor avoid bankruptcy. However, this should be taken under careful consideration, as when this happens, all loans and credit card bills are combined into one debt. Often when this is done, the creditor wants the debtor to use their house or other assets as collateral. If the ultimate decision is to file bankruptcy later, debt consolidation may put a debtor’s ability to keep their house in question.

Bankruptcy, and whether or not to file, is something that should be discussed with an Des Moines bankruptcy attorney. Part of that conversation may include other bankruptcy alternatives if that is what the debtor wishes to pursue first.

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.

Not many people know that there is a category of debtors that are collection proof. One simply cannot get blood from a stone.

“It goes without saying that the U.S. economy is the pits, but just lately, it has been offering a glimmer of hope for the future. Unemployment is still critical in the nation, and millions of Americans have been facing financial hardship for the last four years. Without a job, faced with mounting debt and no way to pay it, bankruptcy has become a reality we see every day. Bill collectors become a part of your waking life. Lawsuits often follow,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer

Usually, when lawsuits are filed against a debtor, the debtor realizes it is time to take action, and that action may well be filing for bankruptcy protection. “What many people don’t realize is that there is a group of debtors, the ones with hardly any assets that are collection proof. Put another way, there are no assets a creditor can attach after a judgment. It may also mean that the debtor doesn’t have a job where their wages can be garnisheed or that they don’t live in a state that permits garnisheeing wages,” Ahrenholz said.

“For collection proof debtors, you’d want to ask a competent bankruptcy lawyer what rules apply in the state you live in, as it tends to vary. Other than that, if getting calls all hours of the day from collectors doesn’t bother you or you have found a way to ensure no one gets your phone number, you might be able to avoid collections efforts until the statute of limitations passes, which is from three to ten years, depending on where you live. Seriously though? I don’t recommend you do this, and it would look really bad on your credit report,” Ahrenholz said.

While some may think seriously about avoiding paying a debt for up to 10 years, the easier way to accomplish that is to file for bankruptcy protection. When a petition is filed, all collections action ceases under a provision called the automatic stay. The stay applies to all types of bankruptcies and halts certain lawsuits, evictions, creditor harassment, attachments, foreclosures, garnishments and utility shut-offs.

“Every bankruptcy is different, just as everyone’s situation is unique, and depending on which state you live in, there may be different rules and regulations and exemptions. This is why you definitely need an experienced Iowa bankruptcy lawyer to guide you through the bankruptcy process if you are in financial dire straits,” Ahrenholz said.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter5.com or call 1.877.888.1766.

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.

Bankruptcy may look like the end of the world to many. But fortunately, it is not.

“I hear a lot of stories in this line of work and one has always stood out in my mind; a woman who lost her house to foreclosure, and even though she declared bankruptcy, she of course, still had to pay $25,000 in student loans. She had quite the journey to get to solid footing once again, but she hung in there and made it. Her advice to others? There is life after bankruptcy and nothing to be ashamed of if life happens and you just can’t manage it. That’s good advice and something I tell my clients. You will get credit again, that is pretty much guaranteed,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

Bankruptcy used to carry a horrid stigma and said to people that those who declared bankruptcy could not manage money and were perhaps also making up their hard luck story to get out of paying bills. The shadow of bankruptcy dogged them for many years and made getting credit very difficult. That is not the case today, when with a solid track record of consistently paying bills, people can get their credit back on track. “Yes, the information that they did go bankrupt is still in their file, but they can come back from that by paying things on time and sticking with their payment plan program,” Ahrenholz said.

Ultimately, the bankruptcy process protects both the creditor and the debtor and lets an honest, well-intentioned person work their way out of a bad financial situation. It just takes persistence and the desire to set things straight and own up to the responsibility of any debts incurred. Do some people take advantage of the system?

“Yes, it can happen and has happened, but with the changes to the bankruptcy laws relating to a means test, it happens less frequently than before. In any process, there are those who work within the system and those who would rather cheat the system. That’s life,” Ahrenholz said.

It is not always easy to work out of a lousy financial crunch and often, despite best intentions, the debtor gets overwhelmed and needs to start over. Filing bankruptcy is usually the answer, but there are some things that need to be done before filing.

“Know what chapter you think would suit your circumstances. If you aren’t sure, that’s what I am here for. Just ask me. This is a complicated process and frankly, I wouldn’t advise anyone to try and tackle it on their own, as they might miss something and be dismissed for doing something wrong. Don’t take the chance when help is just a phone call away,” Ahrenholz said.

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.

Not many people understand the differences between secured and unsecured debt, only knowing they owe too much to ever pay it all back.

“There is one very easy method to determine the differences between secured and unsecured debts, and that is if your creditor can take an item or property away from you, it is secured debt. For example, your home is secured with a loan and the lender can take it back it you don’t repay what you owe. As for unsecured debts, those do not involve property or products. Think medical bills or credit card debts,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

What difference does the distinction make? Typically, the differences make a difference when someone is contemplating filing for bankruptcy. If it is a Chapter 7 bankruptcy, they are able to choose between keeping the property or product and paying out the debt. Should the debtor decide he or she cannot pay anything, the product or property may be given back as payment for the debt.

In a Chapter 13 situation, the debtor is allowed to keep the product or property, but they must have a plan to pay off the debt, usually within three to five years.

“In instances like this, it is often the case that the bankruptcy court will only let the creditor charge somewhere around the 10 percent interest rate. No doubt that is a lot lower than what you were paying. Keep in mind, if the value of the item in question is less than the value of the debt, the outstanding amount above that isn’t covered by the item is paid as an unsecured debt without interest,” Ahrenholz said.

“If you are facing bankruptcy, make your first point of contact my office. We have all the information you need, take the time to outline all of your options and will be happy to assist you with your filing, should you hire my services. The first consultation is free and we look forward to talking to you and answering your questions,” Ahrenholz said.

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.