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 https://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 https://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 https://www.iowachapter7.com or call 1.877.888.1766.

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.

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.

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.

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.