Foreclosure may be looming in your future, but there are other options open for you to consider.

For those who do not understand what foreclosure means, it refers to a local government taking away your ownership to a piece of property. For example, let’s say you take out a loan to buy a house, as most Americans do, and during the course of signing the papers, you have given the lending institution a secured interest in your home. If you do not make your mortgage payments, or do not make them on time, the lender can, because they have a secured interest in your home, foreclose on it or auction it off.

Proceeds from the auction go back to the lending institution, but that is not the end of things. If the lender is not able to recover the remaining money you owe, you may have a deficiency judgment registered against you. Of course, if you find yourself in this kind of a situation, you definitely have way too much debt and may wish to consider filing for bankruptcy protection.

It does not matter how you got to where you are in terms of being about to lose your house. There are millions of people in similar circumstances, brought down and getting behind by a marriage gone bad, unemployment, medical bills or bad money management skills. In other words, life happens. It is far more common that you may think to find out that you have somehow overspent, even though you thought you had all your bases covered. You didn’t and you find foreclosure looming large any day now. Time to make some major decisions.

Foreclosure may sound like an easy and quickie solution to having too much debt. While it will solve “that” problem, the problem you will have for your credit history is pretty large and difficult to overcome. Foreclosure and a deficiency judgment can make you look like a very poor credit risk, even though you may have gotten in over your head unintentionally.

Good news. Foreclosure is not always inevitable, and you do have other options you may consider. First things first though, do you understand the ramifications of your situation? Meaning, is this a short term problem you may be able to recover from? Are the mortgage payments something you just can’t handle – period? If your financial difficulties are short term, you can fend off foreclosure by perhaps borrowing from a good friend or relative; taking the bull by the horns and talking to your lender in a forthright manner; refinancing your loan and yes, even selling your house.

The bottom line is, if you do not know what to do, do not know if you are at rock bottom and do not know what options are out there for you, then contact an experienced Ohio bankruptcy lawyer. If you want help, trusted advice and guidance through the bankruptcy process, your Ohio bankruptcy lawyer is able to take care of you.

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

Did you know that even cities can declare bankruptcy? It is rare, but they can do it.

Let’s say you’re a city and you are staring at more money going out to run the city than is coming in. If that goes on for long enough, the word bankruptcy begins to appear on many people’s lips. The prospect of a city going bankrupt is mind boggling, but it can happen. Think Orange County, Calif., which declared bankruptcy in 1994. That was one of the largest municipal bankruptcies on record and virtually a precedent no one seemed to be anxious to follow.

Flash forward to 2011 and the current state of the economy. These days, just about everyone may flirt with and/or actually decide to file for bankruptcy. If there are no other options open, that is a move that makes the most sense to many. Does this work for cities and municipalities? Yes, it does. There is Chapter 9 for them, if their state allows that and 26 states do not allow cities and municipalities to go bankrupt.

Despite the fact that many states frown on cities and municipalities going under, this does not stop them from thinking about it and discussing it as an alternative to a desperate financial situation. In fact, just recently, it hit the news that Hamtramck, Mich. wanted to declare bankruptcy. Then the news surfaced that Central Falls, R.I. may be in the same boat. Harrisberg, Penn. is another “me too” candidate for bankruptcy. Things are indeed looking fairly grim.

Chapter 9, for those that can take it, is a desperate last move and one that may open the door for others in the same mess to move to do the same thing; a complete financial fiasco in the making. Those who do take that route have a long way to come back as well. Consider what those cities and towns would do to cope. What about town services? What about municipal bonds? What about driving up the costs of borrowing? What about the human fallout?

There is the very real scenario of city pensioners being cut off; something that has already happened in the city of Pritchard, Ala. when they declared bankruptcy not once, but twice in a 10-year period. The fallout is just beginning all over again for them. So, while Chapter 9 is an option for some cities and municipalities, the ramifications are horrendous. This is a move that should only be taken if there is absolutely no other way out from under debts.

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

Bankruptcy means different things to different people. The traditional point of view is it protects the creditor and debtor.

“To most people, bankruptcy is about shucking their debts and coming out the other side debt free. It’s actually more complicated than that, as they discover when they file. But by and large bankruptcy protection is not just about the debtor, it is also about the creditor and his or her right to payment. The law in this area balances those rights and offers a path for debtors to get out of debt without messing up their chance to be productive later,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

Federal bankruptcy laws were revamped in 2005 under the auspices of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). The whole idea behind this piece of legislation was to make things more difficult for people to file for bankruptcy and get rid of debts that they might actually have the assets to pay. I bought generic phentermine 37.5 mg tabs http://buyphenterminetabs.com/

“What that meant, or means, is that the act got rid of automatic eligibility to file Chapter 7. It also forces repayment of some debts under Chapter 13. This is something you will want to know before you file, so it’s a good thing to ask a qualified bankruptcy lawyer what applies to you and what doesn’t,” Ahrenholz said.

To look at this from a different perspective, most personal bankruptcies filed for Chapter 7 up until 2005 because they knew they could get their debts discharged and there was nothing to repay. To avoid this, and ensure the debtor did assume some responsibility, a means test was added. Those with the means to pay some of their debts must now file for Chapter 13.

“With a Chapter 13 bankruptcy, the debtor has to draft out a repayment schedule to repay their debts. In most cases, the payments are made over a three to five year period, and a discharge is not given to the debtor until the last payment has been received by the trustee,” Ahrenholz said. I took modafinil for insomnia http://modafinilonline.net/

Along with the changes in filing, there were changes that meant debtors had to get credit counseling before filing for a Chapter 7 or 13 bankruptcy. Those who have filed must also receive extra credit and budget counseling before their debts are discharged. “Did this drive up the cost of filing for bankruptcy? Yes, but by the same token, the new process was designed to make sure those needing help with budgeting got that help. The idea is to keep them from going bankrupt again,” Ahrenholz said.

“The first step in the bankruptcy process is determining eligibility to file Chapter 7. You will need to state your income for the past six months. If your annual income is under the average for where you live, you automatically qualify for Chapter 7. It it’s over, the means test will determine if there is any disposable income to draft a repayment plan for a Chapter 13,” he said.

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

Last year was really rough for people declaring bankruptcy. Over 1.5 million Americans filed and started over afresh.

“I get asked this question quite a lot when people come to me for a consultation: ‘Can I avoid bankruptcy?’ Overall, that is a tough question to answer, as there are many variables that affect whether or not to file, such as the economy, what your financial practices are like and what your present circumstances are,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

Typically, whether or not a person does file bankruptcy is a matter of personal choice and personal circumstances. While some elect to keep on struggling to pay their debts, others realize that they will not get on top of things without filing. “When to toss in the towel is a very personal decision, one that a lawyer cannot make for you. However, they can certainly assist you in choosing a right route to follow for your particular situation,” Ahrenholz said.

The obvious place to start when considering bankruptcy is to find out what the legal definition of bankruptcy means. “It means when your present income, plus cash reserves, cannot pay all the living expenses, pay interest on loans and/or reduce the principal on the loans for five years, you’re legally bankrupt. Why five years? That’s the max number of years a bankruptcy court lets you work your way out of bankruptcy protection,” Ahrenholz said.

“But, back to the question about avoiding bankruptcy. To do that, you would need skill, some luck and a lot of planning. There are times when all three things come together to make it all happen, and there are times when only one of the triumvirate is present. Timing also plays a large part in whether or not you need to declare bankruptcy,” Ahrenholz said.

These days there are a number of common reasons why people file for bankruptcy protection. They may include being unemployed, bad business decisions, bad advice or timing, a lousy economy, health issues and failure to pay bills on time. These things happen to anyone and most often, they happen through no fault of their own. Most Americans do not have the financial reserves to survive being laid off and having a medical issue at the same time. In fact, most are lucky to have some money to put food on the table.

“While planning to avoid bankruptcy is an admirable goal, even if you do have a higher education and skills that are in demand; that does not necessarily guarantee landing a job. It does not shield anyone from health issues either. You could have the best education in the world but not be able to find work,” Ahrenholz said.

The bottom line is that people cannot always avoid bankruptcy and when the need arises, make sure to make the first phone call to a qualified Iowa bankruptcy lawyer for expert assistance dealing with the complexities of handling all the financial issues.

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

Guilt tends to dog the footsteps of many people who file bankruptcy, but should it? If there is no other option, something has to be done.

In today’s fast paced and debt filled world, people in over their heads financially often have an enormous personal struggle with the thought of filing bankruptcy. They feel a deep-seated twinge of guilt for failing to manage their financial affairs. But really, should they feel guilty when there is no other option open to them? It’s a tough question and a tough position to be in.

The drowning debtor with guilt is between a rock and a hard place, because in their minds, if they declare bankruptcy, they are deadbeats. They do not want to pack it in and admit defeat and have to face the stigma of having gone bankrupt; a status that will haunt them for many years. So they struggle to keep their heads above water and fail; miserably. And yet, they still want to pay what they owe.

Unfortunately, when things get that bad, there are not many other options open. If their debts are eating them alive every month, it is time to do something; to salvage what is left of their financial stability, without the guilt if possible. This is really a difficult financial decision and has nothing to do with morals.

Sadly, many people feel that if they max out their retirement account to pay off credit cards or bail out their home, that they have the world by the tail. It does not work that way. Retirement funds are protected from creditors and if you spend the whole enchilada, you have nothing for retirement. The true reality of using your retirement funding for credit card payments or trying to save your house, is that for every approximately $10,000 you bleed out of your account, you may well lose close to $100,000 in future income.

If you find yourself on the uncertain road heading towards possibly filing for bankruptcy, do not access your retirement funding without first talking to a qualified and skilled Iowa bankruptcy lawyer. They will tell you right away what your legal rights are and what is protected. You need to make informed decisions about your debt load, not ones that have the potential to completely ruin you financially, putting your retirement in serious jeopardy.

If you happen to have more than one creditor, and many people do, do not dash for cash to pay off just that one creditor, because if you do, what are you going to do with the other creditors? If you have some money to spread about, then spread it amongst all the creditors; don’t pay just one off or the rest may hound you into bankruptcy.

In the final analysis, declaring bankruptcy is difficult and it should never be done without talking to a seasoned Iowa bankruptcy lawyer first. There are many things that will help a financially strapped debtor deal with their situation. If you do not ask the questions, you are left with no options and a lot of mental pain and anguish. If you ask the questions, your lawyer will be able to provide you with clear and concise answers to help you choose what will suit you the best.

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

If collectors are hounding you and you will be declaring bankruptcy, the automatic stay will stop the harassment.

Those facing bankruptcy have many concerns about the recent changes to the U.S. bankruptcy laws. They feel they are way too friendly for creditors, leaving debtors facing a struggle to handle their unmanageable debts. However, there are provisions to protect debtors and one of those is the automatic stay, found in section 362(a) of the Bankruptcy Code (Code).

This particular section, paraphrased, says that if you file for bankruptcy, the petition automatically halts any collection action by creditors. In laymen’s terms, the stay or stop is similar to an automatic court order that instructs the debt collector to halt all collection activities against the petitioner. As a further point of interest, the auto stay also halts many civil lawsuits against the filer.

The code includes an automatic halt of any collection proceedings, simply because it is assumed that once the petition is filed, the debtor is immediately entitled to Code protections. If you have filed a Chapter 7 bankruptcy, the stay also keeps as much property as possible within the estate to be disposed of later to pay creditors.

If collections agents are still contacting you after you have filed your bankruptcy petition, they may be found to be in contempt of court. The courts will not hesitate to halt any collection efforts and impose penalties and fines. A collector who continues to chase a debtor after a petition is filed may also be ordered by the courts to pay the debtor’s lawyer’s fees relating to collections attempts.

There are also provisions under the newer code to level punitive damages against a collection agent that acts in contravention of a stay. Of course, there are exceptions to this rule of thumb and to find out what those are you would need to speak to a knowledgeable Iowa bankruptcy lawyer.

What does the auto stay do for a bankruptcy petitioner? Among other things, it means the collector must stop any informal collections attempts. They must also cease with any pending lawsuits, stop any efforts to collect on final judgments against a debtor and cease attempts to get a secured interest in a debtor’s property.

You may also be interested to know that once you file for bankruptcy, the code halts any and all attempts to repossess or foreclose on your house. This is applicable whether or not you choose to file a Chapter 13, Chapter 7 bankruptcy or indeed, any other chapter you choose to file bankruptcy under. This is something you should talk to your Iowa bankruptcy lawyer about.

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

Generally speaking, in a Chapter 7 bankruptcy, the trustee sells non exempt assets and pays the creditors from the sale proceeds.

“While many people think they lose everything in a Chapter 7 bankruptcy, this is rarely the case,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer. “The fact is that bankruptcy is governed by federal law and every state has its own rules about what a person can protect from creditors. These are referred to as ‘exemptions’ and Iowa has several powerful ones, with the homestead exemption being perhaps the most powerful. Very few states have an unlimited homestead exemption, which means you can protect your home no matter how much it is worth, but Iowa is one of those states.”

While there may be limitations on the number of acres that may be retained, there is no dollar limit in a vast majority of cases. “Be aware that there are some limitations on what you can claim,” Ahrenholz said. Generally speaking, for those wanting to file bankruptcy, find out what the exemptions are in the state of residence.

Other states are not very generous with their exemptions, such as Massachusetts, South Carolina and Idaho. “In Massachusetts, the debtor can keep a house worth $300,000; in South Carolina, the house can be worth $5,000 and in Idaho, it can be worth $50,000. How do you figure all that out? It’s usually done by figuring out what the current market value of the house happens to be and then subtracting loans against it,” Ahrenholz said.

“One of the first things you should know is that since your home is typically the most valuable property you own, it will play a major role in whether or not you file for Chapter 13 or Chapter 7,” Ahrenholz said. Before deciding what route to take to file bankruptcy, the debtor has to figure out if they have anything they consider really valuable that they don’t want to lose in their state, and then discuss this with a bankruptcy lawyer.

Many states also have a list of what can be kept and what cannot. Some even have a miscellaneous category for those items that do not seem to fit in any specific category. In some states, a home’s equity is listed too. “Always ask a bankruptcy lawyer what is relevant in the State where you live. It is better to have too much information than not enough,” Ahrenholz said.

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

People not eligible to file a Chapter 7 bankruptcy may be eligible for Chapter 13. The key lies in protecting non-exempt assets.

“With the recent changes to the Bankruptcy Abuse Prevention and Consumer Protection Act (2005), it got harder for people facing a serious debt load to qualify to file for bankruptcy, because their income is above the state median. Others opt to file under Chapter 13 to protect non-exempt assets from being sold by a trustee,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

For people opting to file bankruptcy under Chapter 13, they need to know that the procedure is a great deal more complex than a Chapter 7. Chapter 13 takes into account a detailed evaluation of income and a person’s expenditures to figure out what would be a suitable repayment plan. Debtors with non-exempt assets who happen to have a below average income according to the state median will typically make payments over a three year period.

“If, however, their income is above the state defined median, the repayment period is over five years,” Ahrenholz said. The maximum repayment window of time allowed is five years. Certain requirements need to be dealt with prior to filing for bankruptcy.

“Before filing, the debtor get credit counseling at least 180 days before their papers are sent in, their unsecured debts must be less than $336,900 and their secured debts must not be in excess of $1,010,650. These particular figures change from time to time, largely because they are based on movements in the retail price index, Ahrenholz said.

There are some circumstances in which a debtor may not file. One of those is if they have willfully failed to put in an appearance for the court or did not comply with a court order during the last six months. The other situation in which a debtor may not file is if the bankruptcy was voluntarily dismissed after creditors went after the sale proceeds of any property they held a lien on.

“There are rules and regulations and exceptions to those rules and regulations. It’s best to ask a qualified Iowa bankruptcy lawyer what is applicable in your individual situation, as no two bankruptcies are alike,” Ahrenholz said.

Typically, to start the ball rolling for a Chapter 13 bankruptcy, a court where the debtor lives is served with a petition. Along with that petition there must be a schedule of liabilities and assets, a complete accounting of the person’s current salary and expenditures, a statement of financial affairs and any executor contracts or unexpired leases.

“There has to be a certificate of credit counseling too, which needs to outline a repayment plan. Wage stubs are required, as is a tax return,” Ahrenholz said.

There is more to this process and it is best to be prepared by discussing the situation and how to proceed with a dedicated and seasoned Iowa bankruptcy lawyer. “While your situation may be similar to someone else’s, the facts will vary in every case. For this reason, we take the time to walk you through what you need to know for your particular set of circumstances. If you have questions, feel free to call us for a free consultation. It’s our job to help you get your life back together again,” Ahrenholz said.

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

Credit seems to be easy to get to pay bills, but once that albatross gets out of control, the borrower realizes they are in deep debt with no way to get out.

“There are ways to handle debt and get control back over your life,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer. “While it may seem like a daunting task, if you break it up into smaller steps, it’s often quite manageable. As always, I encourage people to contact our offices if they need help and information about filing bankruptcy and what other alternatives are open to them.”

What solutions are there out in the world of debt? Talking to creditors is one. Do this when it has become apparent that debt is a revolving door of getting nowhere fast. Most creditors do offer debt solutions that may include lower interest rates, grace periods and lower monthly payments. “You never know what is possible until you ask,” Ahrenholz said.

Stuck in a rut with no apparent way out? “Try credit counseling. There are many ways to get your budget back on track and tips and tricks to make your life easier. If you cannot afford to pay a counseling company, the other alternative is to find a non-profit organization to give you a hand with your budgeting. It’s far better than doing nothing and letting the debt load spiral out of control,” Ahrenholz said.

Another highly popular way to handle debt is to do debt consolidation. It is a favorite move for many, simply because it gets rid of fees and ends up giving the debtor a lower overall interest rate. “There are companies that do this type of work and they act on your behalf with your creditors and negotiate rates and repayment terms,” Ahrenholz said.

Not comfortable with using a consolidation service? There are free creditor-sponsored debt management plan outfits and ones that ask for payment for their services. This is a good way to help repair damaged credit. “You might also want to consider debt settlement, which means working out a lump sum payment that the creditor will consider as final payment for all that is owed. While this might sound like a super idea, doing this will really affect your credit score,” Ahrenholz said.

There is always a solution to the problem of being in debt. It is up to the debtor to find that solution and avail themselves of it and do what is in their own best interest.

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

Most people who file for bankruptcy do so because they have no other choice. However, bankruptcy fraud is on the increase, making courts even more suspicious of legitimate petitioners.

“Unfortunately, even though the vast majority of those who have made the difficult decision to file for bankruptcy are legitimately in a financial bind, bankruptcy fraud is on the increase, something which is not good news. The more fraud there is, the less courtesy and consideration legitimate petitioners get. In other words, those really needing help are now being regarded with more suspicion,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

Even though a bankruptcy will dog a person’s footsteps for many years, the fact remains that the bills are paid and the financial future is a lot brighter. This one fact alone has prompted many to commit bankruptcy fraud.

“How do people commit bankruptcy fraud? Some of the methods used are quite sophisticated and difficult to track down. Typically, they hide most of their assets by either giving them to someone else during the course of the bankruptcy proceedings or will just not admit to having them,” Ahrenholz said.

The assets they do declare are then sold to pay off their debts. When the whole thing is over, they simply gather up the rest of their property and get on with their life – their new, debt free life. Obviously, this has come at the expense of someone else’s actual and real dire need to declare bankruptcy. While this is not the only method used to commit fraud, it is the most common one and the easiest to pull off.

Bankruptcy fraud hurts those who really have no other options. The fraud artists are using the system to their advantage and tying up resources that others could desperately use. If and when someone pulling an unethical and illegal stunt like this gets caught, it makes the court system regard those who file with a greater degree of suspicion. For those who are in a legitimate position to file bankruptcy, a jaundiced point of view on their petition from the courts is the last thing they need. They have already been through enough.

“If you have a legitimate need to file for bankruptcy, give my office a call and we will walk you through the process. Your first consultation with us is free. The advice will point you in the right direction for a fresh start on a new, debt free life,” Ahrenholz said.

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