Chapter 7 Bankruptcy Cedar Rapids | Attorney Kevin Ahrenholz Des Moines

Iowa Chapter 7 Bankruptcy

Understanding Chapter 7 Bankruptcy

A Chapter 7 is called a straight bankruptcy or liquidation bankruptcy. You are allowed to keep your home, car, qualified retirement plans, household goods, furniture, and clothing, as well as some other important categories of assets called “exemptions.”

If you have assets that exceed the limits of these various exemptions, the bankruptcy trustee can sell those assets, or “liquidate” them, to pay your debt. This is why it is called a “liquidation” bankruptcy. In reality, in Iowa, most people that qualify for a Chapter 7, do not have very many assets that are non-exempt, meaning that not very many people have their assets sold or liquidated if eligible for a Chapter 7. Most Chapter 7 filings that our Iowa Chapter 7 Lawyers work on take three to four months to complete, meaning that you would obtain a discharge of your debts in about four months.

A Chapter 7 is ideal at discharging “unsecured” debts such as utility bills, credit cards, medical bills and other unsecured loans. (“Unsecured” means that the debt does not have one of your assets tied to it as collateral, such as a car or home loan. Those loans are “secured” debts). In addition, you can keep your car loan and home loan current through a Chapter 7, which will allow you to keep your car and home. Or, if you want to discharge and eliminate a car loan or home loan, you can do that too through Chapter 7, if you are willing to surrender the asset securing the debt.

Bankruptcy Relief is an Option

The Bankruptcy Code is a complex federal law, which is why you need effective legal representation to help you. Bankruptcy is on the rise, as it is not easy keeping up in today’s economy. There should be no stigma associated with it, as it is no different than any other federal body of law where people benefit from its application, such as claiming a deduction or tax credit on a tax return pursuant to federal tax law.
Both laws provide a financial benefit to the individual if they follow the law, but no one feels ashamed or embarrassed claiming a tax deduction to protect money from government reach. Similarly, no one should feel ashamed protecting their income and assets from the reach of creditors by utilizing federal bankruptcy law.

If you are eligible, the law and an Iowa bankruptcy attorney is here to protect you, and it is there to help you and your family get a fresh start. Bankruptcy is designed to give an honest debtor a lease on life by relieving them of most debts and to pay creditors to the extent the debtor has assets or income.

Iowa Bankruptcy Lawyer and Chapter 7 Attorney

If you are thinking about filing bankruptcy, you are not alone. We are here to help individuals and businesses deal with debt through Chapter 7 debt relief, Chapter 11 debt reorganization, Chapter 12 debt reorganization for farmers, and Chapter 13 debt restructuring and management solutions.

We can stop creditor harassment, garnishments, foreclosures and repossessions much more efficiently and effectively than debt settlement companies and credit counseling agencies. We offer high quality legal representation, compassionate legal advice, and straightforward solutions to solve your financial problems.

Give us a call. We have very reasonable fees, flexible payment plans and offer free consultations and quotes.

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