If you are responsible for paying spousal support, filing bankruptcy will not negate that obligation.

You just found out that your spouse has filed for a divorce and you are in a panic. Perhaps at some point you made the decision to actually stop paying on your debts because you just could not keep up, and being served a divorce petition was the last straw. You think now it might be time to file bankruptcy, as you do not have the money to pay support. You also need to file some kind of response to the divorce action. Before you make any kind of decision relating to your divorce and/or filing for bankruptcy, consult with an experienced Iowa bankruptcy lawyer. If you make the wrong move now, you could find yourself with legal difficulties.

What considerations are there with respect to divorce and bankruptcy? Before the Bankruptcy Act of 2004, it was possible to discharge debts that came about as a result of divorce. Since lawmakers considered this to be a loophole, amendments were made to the Act to close it, which means you may no longer discharge any financial obligations that are the result of a divorce, including spousal and child support.

Your main consideration should be whether you are eligible to file for bankruptcy protection.  The fact that you are facing a divorce is irrelevant to the issue of filing bankruptcy. However, in order to make the most informed decision about how best to proceed and whether to file Chapter 7 or Chapter 13 bankruptcy, it is imperative that you discuss your situation with a qualified Iowa bankruptcy lawyer.

Filing for bankruptcy is stressful enough without also facing divorce at the same time. This is when you need to services of a skilled Iowa bankruptcy lawyer to help you get through the maze of rules, regulations, credit counseling, and paperwork. If you attempt to file bankruptcy on your own without legal counsel, you may be wasting your time and money and ultimately find yourself at risk having of your bankruptcy petition dismissed. Hiring a knowledgeable bankruptcy attorney is the best investment you will ever make.

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.

It is a good idea to keep a copy of all of your bankruptcy case-related documents, particularly your discharge paperwork. However, if you lose it, it may be replaced.

When the bankruptcy process is concluded, the debtor is released from liability on a variety of debts. When the court determines the debtor has fulfilled all of his or her obligations in filing for bankruptcy protection, the discharge order is entered by the court and the debtor gets a copy of his or her discharge papers in the mail. It is wise to keep your copy of these documents.  Your Iowa bankruptcy lawyer will remind you of the importance of keeping these kinds of documents throughout your bankruptcy filing.

Remembering to keep original bankruptcy discharge papers is routine for some debtors and more difficult for others. Managing and organizing court-related documents is not something most debtors do on a regular basis. If you are a debtor who has lost your bankruptcy discharge papers, you may obtain another copy in one of three ways.  The first way to obtain copies of case-related documents is to contact your Iowa bankruptcy lawyer to see if he or she has an extra copy of the document you are seeking in the office file. 

Your second option is to contact the court where your bankruptcy petition was filed. If you want to do this in person, contact the clerk of the bankruptcy court where your bankruptcy case was filed and discharged. If you are not certain which court you need to contact, you can ask your Iowa bankruptcy attorney or search online using the PACER system. If you choose to search online, you may need to pay a fee for the clerk to search and certify your papers and have them sent to you in the mail, or you may opt to pick them up in person.

Your third option in seeking a copy of your bankruptcy case-related court documents is to go online and access the Federal Courts PACER system. The PACER system allows individuals to create a free user account prior to searching for a copy bankruptcy case-related documents, including the petition or the discharge papers. If the information is located in the database, you then have to indicate how you will pay the per-page fee in order for the information to download to your computer. If you are not the debtor listed in the document you want, you are still able to obtain a copy of any public record bankruptcy papers by speaking to the bankruptcy court clerk where you filed your bankruptcy papers.

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.

For credit counseling, choose a counselor that works only for you, not a third party. 

If you are going to credit counseling as a result of filing for bankruptcy protection, you need to choose an independent individual who will be working for you, and who has no affiliations with banks or other lending institutions. You might wonder how you would do that or how would you compare them? 

The first thing you need to determine is who is responsible for paying them. Do they work for you? Do they work for the bank where you have a loan? Do they work for a credit card company? The answers to these questions are important, mainly because you want someone that is 100 percent advocating for you as opposed to someone who is working on behalf of the people that loaned you money. 

Good, independent choices for credit counseling may run the gamut from an attorney that specializes in that area to an accountant with extensive experience in dealing with bankruptcies. It could also be an individual who may work for a credit reporting company, or a business that helps people work through their financial issues. If at any time you are uncertain about how to find a credit counselor that is not affiliated with a lending institution, ask your Iowa bankruptcy lawyer for suggestions. 

If you discover that the person or company you want to deal with has ties to a lending institution, bank, credit union, or credit card company, then you can expect they are not working in your favor. They may look like they offer good service and advice, and in fact may do a good job, but their real reason for helping you is likely to get as much money back from you as possible. They may even be free, which is tempting when you have very little money to go around. 

Opt for the independent credit counselors, whose only job is to help you deal with the difficult situation you find yourself in. At any point during the process of filing for bankruptcy protection, it is smart to keep asking questions about what is happening, what is next, what documents are required, and what to expect when things are said and done. Your Iowa bankruptcy attorney will guide you step-by-step through the maze of rules and regulations. You just have to ask for help. 

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.

It is really intimidating filing for bankruptcy. Often people make mistakes on filing, or try to hide assets and property.

Filing for bankruptcy is an overwhelming decision. Actually sitting down with a skilled Iowa bankruptcy lawyer and reviewing your situation often causes anxiety. It is a big step and the whole process can be overwhelming, which is why it is a smart move to hire a qualified Iowa bankruptcy lawyer to help you get through the maze of rules and regulations.

Some people may be scared to admit to what they have in assets, because they do not know for sure what to declare. Others deliberately lie about their assets, property and spending habits. In both cases, not fully revealing all of your assets and complete financial situation may result in the court dismissing your bankruptcy petition. You may face penalties, fines and possible jail time. If you are facing bankruptcy, make certain you fully understand what constitutes bankruptcy fraud.

What many people do not realize is that it is possible to commit bankruptcy fraud before they file for bankruptcy protection, or even before they may be aware they may need to file. Sales or gifts of property or money during the two-year period before filing a bankruptcy are examined in minute detail by the bankruptcy court. The reason for this time frame is that, in most instances, bankruptcy means seizing and selling the debtor’s assets.

Some debtors then try to keep their property by transferring it to a family member or best friend. If property or other assets have been transferred during the two-year period, and the court deems the transfer was not for a legitimate and fair reason, they may find you liable for fraud. This is not the only way to commit fraud. In fact, another common method is providing false information to the court by leaving assets off the schedule of assets, or claiming exemptions that are not applicable. In both of these situations, the debtor is intentionally making a false statement to the court in the hopes they can get away with something. The court does not take bankruptcy fraud lightly.

Another method debtor’s have used to attempt bankruptcy fraud is to give a creditor a false statement. An example would be taking out a personal loan and stating your income was $60,000 a year. The bank would give you a loan based on that stated income, which is false. When you file for bankruptcy, the bank will ask the court to not declare the loan as discharged in the bankruptcy. If the credit institution is able to prove your statement of income was a lie and that your statement convinced them to loan your money, you will not be able to discharge that debt. In other words, you will still need to repay the loan after the bankruptcy has been processed.

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.

Debtors who withhold information on purpose when filing for bankruptcy are filing a fraudulent bankruptcy.

People often withhold information when they file for bankruptcy. It may be due to the fact they are not sure about what they need to include in their filing, or they are keeping the information to themselves on purpose. Withholding information constitutes a fraudulent bankruptcy under the rules of the Bankruptcy Act of 2005, which means it is considered to be a federal offense. Additionally, the statute of limitations for bankruptcy fraud cases depends on what kind of concealment was involved.

When a debtor files for bankruptcy, they are responsible to provide all relevant information about their financial status, assets and spending habits. This type of information is used by the court to figure out your eligibility for bankruptcy, and once this material is filed, you get an immediate stay to halt all collection activities.

The most common types of bankruptcy fraud attempted are trying to conceal property or income. The debtor does not include information that is required by omitting income sources and/or jobs and does not list property in the petition. Property could include vehicles, homes, or jewelry. Other types of fraud that debtors have been known to try are receiving property from someone who is planning to file for bankruptcy relief and then not mentioning it during their bankruptcy hearing.

Officially, the statute of limitation for a fraudulent bankruptcy is five years. In other words, it is the median, but it is best to keep in mind that it does not go into effect until the bankruptcy case is discharged or denied. An example of this would be an individual filing for Chapter 13, with a five-year plan to repay all or a portion of their debts. If the bankruptcy was fraudulent, the federal court then has five years after the discharge, the end of the payment plan, to begin prosecuting the debtor. Put another way, the federal government had a total of ten years to build a bankruptcy fraud case against the debtor.

You should also be aware that after a discharge is granted, the bankruptcy court can move to revoke it. They would do that based on the determination that the discharge was approved as the result of the debtor hiding pertinent financial information from the scrutiny of the court. The creditor’s lawyer has one year to petition the court to revoke the discharge before a separate statute of limitations kicks in. As you can see, this is a very complex process.
If the debtor is found guilty of bankruptcy fraud before the statute of limitations expires, this is a felony offense, with a fine of up to $250,000 and five years in jail. On top of this possible consequence, other creditors have the option to take legal action once they are made aware the bankruptcy discharge was revoked or the case denied.

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.

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