When facing bankruptcy, most people would prefer doing it on their own. Involuntary bankruptcies are no fun.

It is not too surprising that bankruptcies tend to reflect the state of the economy. When the economy is in good shape, there are not many bankruptcies. When it is bad, bankruptcy figures start to soar. In 2009, close to 1.4 million bankruptcies were filed across the nation.

There are two kinds of bankruptcies, involuntary and voluntary. While it is true that involuntary bankruptcies are the exception rather than the rule, they do happen fairly often. An involuntary bankruptcy happens when a creditor legally and literally forces a debtor into bankruptcy. This can happen to anyone, at any time, at any age and in any social strata, including famous people. Bankruptcy is not fussy about who it hits.

Most bankruptcies are done voluntarily, and while still a blow to those who have to declare it, there is some saving of face in the fact that they did it on their own. Is there any good news in the bankruptcy statistics? According to some pundits, it is beginning to look like the economy has hit the absolute bottom and is now aiming to come back up for air. Evidently, the possibility of a turnaround is being fueled by court records, of all things. The records are suggesting that bankruptcy rates dropped by 8.9 percent in June 2010.

While that is indeed good news, there are still those struggling to keep their heads above water and decide which Chapter they want to file under. The long-term forecast though could mean that those just beginning to head down the road to bankruptcy may have a reprieve. When the economy is balanced, typically you have the opportunity to recover from your losses. It may take you a while to do that, but the chance would be there.

Still and all, if you do not have a chance to ride the wave of a more balanced economy, you would have a new opportunity to start all over again financially if you do declare bankruptcy. That is what bankruptcy laws are all about in the first place; offering protection to the honest individual to allow them to work their way out of a bad financial situation they had no control over. This is not to say that creditors don’t have protection, because they do, as does the debtor. In other words, it is about financial balance and equity.

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.

While there are a great number of things you may discharge when you go through a bankruptcy, a student loan is not one of them.

The bankruptcy process offers debtors in over their heads relief from a wide variety of debts – as long as they are unsecured debts. However, there are also several types of debts that will not be discharged as easily, and one of those debts is a student loan. No doubt there will be many loud groans over that bit of information, but the fact is the general rule of thumb is that student loans do not get discharged in a bankruptcy.

A lot of people think this is unfair, but if you consider the reasons for it, it actually makes sense. Look at it this way. If student loan debt could be discharged, how many institutions would be willing to lend students money to get an education? The answer to that would be not many, and with good reason. Why shell out bucks you will not get back if they declare bankruptcy.

It’s pretty easy for students to get money to get educated. Consider those people our future generation. If they were to get what money they needed to make something of their lives and then be able to discharge that later by declaring bankruptcy when they graduated, those who loaned the money would be paying the penalty; a penalty that would be passed on to the next students wanting to borrow money. In other words, it would be brutally unfair to lenders, and thus the federal government said student loans cannot be discharged in a bankruptcy proceeding.

Having said that, as you probably know, most laws have limitations and exceptions, and yes, there is an exception when it comes to student loans, but it is a very limited one. There is a provision called the “undue hardship exception.” While there are probably many students thinking they would qualify for that, the truth is, it is very hard to prove. The student/debtor must show extreme reasons why they cannot repay the loan.

Extreme reasons may include the student not being able to live at even a minimal standard of living because of the student loan, that they are indeed making a good faith effort to pay on it and that the extreme circumstances will be in effect for the total period of the loan repayment. This process is conducted by way of an adversary hearing within a bankruptcy. A judge determines is an extreme hardship does exist, before a deciding if the student loan may be discharged.

Honestly, this is such a hard thing to prove that it’s likely best that you just assume you can’t discharge your student loan during a bankruptcy, because, in all reality, you likely can’t. If you don’t know what applies in your case, and you have a student loan, consult with a skilled Iowa bankruptcy lawyer. If you want to know how to proceed, what qualifies, what doesn’t and what Chapter to declare, your Iowa bankruptcy lawyer will be able to offer you the advice you need.

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.

A lot of people have this idea in their heads that if they file for bankruptcy, they lose all of their stuff. That is not true.

While filing for bankruptcy is not the easiest thing in the world for a variety of reasons, it also is not the end of the world, despite how it may feel. Yes, there are a lot of factors to take into consideration, not the least of which is a change in lifestyle, meaning taking a good hard look at how you spend money. A lot of people think that when they file for bankruptcy, they lose everything they have. Good news – that is not true.

Keep in mind that every bankruptcy case needs to be assessed on its own, which means every case is different and yet similar. This is only to say that in most cases, the debtor will not be coughing up all of their property and possessions. This is because the law does give a wide allowance in terms of property exemptions. This is good news because during and after the closing of your bankruptcy case, your exempted property is protected by law.

Here is something that most people do not know, or do not understand. Exempted property means you are allowed to keep your property and the equity in it. That bears repeating: you get to keep the property and the equity in it, meaning the difference between the value of your property exemption and what you still owe. This is definitely something you need to discuss with your Iowa bankruptcy lawyer to get a good handle on how it works to your advantage.

As with just about everything, there are other points you need to be aware of as you move forward through the bankruptcy process. For example, each state has the right to choose which exemption will apply to your case, meaning state or federal exemption. In some cases, and this too is something your Iowa bankruptcy lawyer will talk to you about, some states let you make a choice between which route to take.

Typically speaking, federal bankruptcy exemptions are better for you. However, that does not mean state exemptions should be ruled out. This is yet another reason why you need a skilled Iowa bankruptcy lawyer, to help you get through the maze of filing bankruptcy. To get a good grasp as to which type of property exemption would apply to you, you need to talk to a qualified bankruptcy lawyer. That way, you are on the right track.

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.

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.