Filing for Chapter 7 does take time. It should never be viewed as an easy way out of debt.

Des Moines bankruptcy lawyer Kevin Ahrenholz indicates that many debtors feel they are in a hopeless situation and have nowhere to turn. They think filing Chapter 7 bankruptcy is the answer to all their problems. However, filing Chapter 7 may create a problem for them that they need to consider before filing.

Declaring bankruptcy remains on a debtor’s credit report for ten years. This means their credit score, often referred to as a FICO score may drop by as much as 200 points. FICO stands for Fair, Isaac and Company, one of the first credit score companies, founded in 1956. A drop such as that may mean getting a loan or other forms of credit will be difficult, and in some instances, impossible. If there are other alternatives at a debtor’s disposal, it may be worth trying those first.

Ahrenholz discusses a variety of alternatives debtors may wish to try before filing for bankruptcy. One of them is creating a budget. Often a debtor finds a detailed budget focuses on unnecessary expenses. The time involved in tracking all expenses, no matter how small they may seem for at least two months, will give the debtor an idea of where they can cut back.

An in-depth analysis of the results of tracking expenses will clearly show if more money is being spent than made, thus alerting the debtor to areas they may eliminate or reduce spending. Also try to find additional ways to increase the monthly paycheck, and this may assist the debtor to get his debts under control, or at the very least, manageable. While the budget may be on paper, the changes made often translate well into real life spending.

Another strategy that Ahrenholz says his clients may attempt is negotiating with lenders. This is very effective for those who are facing a temporary setback, and have always paid their bills on time. If an individual has a good payment record, many creditors, once they understand the nature of the problem, will lower monthly payments or extend the payment time. It is worth trying, and may make a difference to an individual’s overall financial picture.

Debt consolidation helps a debtor avoid bankruptcy. However, this should be taken under careful consideration, as when this happens, all loans and credit card bills are combined into one debt. Often when this is done, the creditor wants the debtor to use their house or other assets as collateral. If the ultimate decision is to file bankruptcy later, debt consolidation may put a debtor’s ability to keep their house in question.

Bankruptcy, and whether or not to file, is something that should be discussed with an Des Moines bankruptcy attorney. Part of that conversation may include other bankruptcy alternatives if that is what the debtor wishes to pursue first.

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.

Under the U.S. Bankruptcy Code there are six types of bankruptcy. They may be found under Title 11.

For those facing the possibility of bankruptcy, it may help to know that there are six types that may be considered. The common types are Chapter 7, Chapter 11 and Chapter 13. The others are Chapter 12, Chapter 9 and Chapter 15. The last three types of bankruptcy are rarely filed.

Chapter 7 often involves liquidation, and businesses or individuals may file for this type of bankruptcy. To do so, the debtor needs to meet a means test to determine if they are eligible to file. Under a Chapter 7 filing, there is a court-appointed trustee/administrator that takes possession of non-exempt assets, and liquidates them. The proceeds of the liquidation sale are used to pay creditors.

A discharge under Chapter 7 typically happens within a few months after the initial petition is filed. There are a high percentage of Chapter 7 bankruptcies where all assets are secured and/or exempt. If that is the case, the file is closed, which means that no property was sold and therefore, there was no money to give to creditors. This is a situation that needs to be discussed with a competent Iowa bankruptcy lawyer.

For people that have a regular income, or for those who do not qualify for Chapter 7, Chapter 13 may be a good option. In this type of bankruptcy, the debtor creates a plan to repay their debts, typically over a three to five year time span. The plan must be approved by the Court. With a Chapter 13 bankruptcy filing, the individual often retains their assets and makes payments under the proposed plan to the trustee. The trustee pays the creditors.

While the debtor is paying off their debt under a Chapter 13 bankruptcy, they are protected from any creditor actions, garnishments and/or lawsuits. In order to have a Chapter 13 bankruptcy discharged, all payments under the plan must be made.

A Chapter 11 bankruptcy is considered to be a reorganization, and is often used by businesses that wish to stay in operation as they are paying creditors under the auspices of a court-approved reorganization plan. Once the plan has been approved by the court, the debtor begins to repay a portion of their debts, while discharging others.

With an approved plan in place, the debtor may revamp/reorganize their business and take action to terminate contracts or other leases and begin to recover assets. In doing so, they should become more profitable and be able to stay in business.

Chapter 12 bankruptcies deal with debt relief for family fishermen and farmers who have a regular income. In many respects, Chapter 12 is similar to a Chapter 13 bankruptcy. During the course of a Chapter 12 bankruptcy, the business person continues to run their operation, and makes payments according to a court-approved repayment plan that usually spans a three to five year period. Again, a bankruptcy trustee takes the money and disburses it to creditors.

Chapter 9 is similar in nature to Chapter 11. However, the debtor is typically a municipality. For example, school districts, villages, counties, towns and cities may file under this Chapter.
Chapter 15 is the newest type of bankruptcy, and was added to the Bankruptcy Code after the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (2005). Chapter 15 deals with cross-border bankruptcy, which means debtors and/or their property, are subject to U.S. laws and the laws or one or more foreign countries.

If you are not certain what type of bankruptcy you qualify for, discuss this with an experienced Iowa bankruptcy lawyer. It is their job to stay on top of the latest changes in bankruptcy law.

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 papers are welcomed by debtors who have been through the process of filing bankruptcy.

Bankruptcy discharge papers may not look that important, but they are official, and tell the debtor they have finished the process of discharging their debts. For a debtor that has gone through many months of filing papers, creating repayment plans, discussing their situation with a skilled Iowa bankruptcy lawyer, attending credit counseling and coping with the stress, seeing these papers in the mail is a welcome relief. The papers signal the beginning of a new financial chapter for the debtor.

Many debtors wonder why the discharge papers are so important. They are important because they legally release the debtor from paying most of their debts. There are some debts that are not discharged in a bankruptcy, and this is a discussion to have with an Iowa bankruptcy lawyer at the beginning of the process prior to filing.

The discharge papers also ban creditors from attempting to collect on any of the successfully discharged debts. There have been cases where a creditor has attempted to do that, without success, as they are in violation of the law. With these discharge papers, the debtor can be reassured they will no longer get phone calls, letters or have to worry about garnishment. Once the bankruptcy discharge papers arrive, the debt is history. A debtor can expect, though that the record of the bankruptcy will appear on their credit report for a number of years.

Many people are not certain how long it takes after a person files a Chapter 7 bankruptcy before they get their discharge papers. In most instances, the length of time is roughly four months. There may be circumstances that delay the papers being sent, which is an issue that also needs to be discussed with an experienced Iowa bankruptcy attorney. It is better to have as much information as possible about the process of filing bankruptcy, rather than find out about a delay later.

On discharge, it is a good idea to make copies of the official notice. These may be required if you are attempting to correct any mistakes/omissions on your credit report. It also serves as proof to creditors that your debt has been discharged and that they must cease trying to collect on it. If you lose your original copy, you may obtain one from the court. Often the lawyer hired to file your bankruptcy may retain a copy on his files too.

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 it is definitely possible to file your own bankruptcy petition, the process to get there is often fraught with a great deal of frustration and uncertainty. Thus it is wise to hire a skilled Iowa bankruptcy lawyer to avoid mistakes. There are so many documents that need to be filled out, rules that need to be followed and processes that must be undertaken, that it is very easy to run afoul of the system. If that happens, quite often the debtor, even though they meant well, finds themselves having to start all over again or is abruptly discharged and out of luck.

This is one of the major reasons why, when filing for bankruptcy, it makes sense to consult with an experienced Iowa bankruptcy lawyer. They know what they are doing and have been doing it for years. They do not miss deadlines, forget to file all the requisite papers or leave documents out of a filing because they are not sure what the court needs. Their job is to get it right for their clients.

There are do-it-yourself (DIY) kits that give a debtor an idea of the documents and procedures they need to go through to file. However, as with any DIY kit, there are always the issues no one can be prepared for, because every bankruptcy is different. The only thing they all have in common is the fact that the debtor went bankrupt. How they got there, what chapter they filed under and what they need to do to complete their bankruptcy varies on a case by case basis.

It is cheaper to file without a lawyer, but if you make a mistake, it will wind up being even more expensive. It is well worth the money to hire a professional that knows what they are doing because in the long run, they will save you time, money and grief.

Typically, the most common filing is under Chapter 7 and the fee charged to file a Chapter 7 bankruptcy is roughly $299. That may vary from state to state, so ask your lawyer or check the court website if this is something you want to know. The fee for filing a Chapter 13 is usually around about $274, but again, this may vary.

Overall, the fees a lawyer charges a debtor for the correct and timely filing of their particular bankruptcy petition, may range anywhere from $1,000 to $2,500 plus court fees. This is money well spent to get it right the first time and get it done so you can get on with your life.

Basically, if you want to be safe, get it done right, file under the appropriate Chapter and get clear of your debts without running into problems, then hire a skilled and experienced Iowa bankruptcy lawyer. It is the only smart thing to do when faced with the daunting process of filing 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.

Although you could roughly guess what Chapter 13 bankruptcy payments may be, it is best to discuss this with a competent Iowa bankruptcy lawyer to get it right.

In a nutshell, Chapter 13 bankruptcy payments are figured out in such a way as to allow normal family and household expenses. While it might sound fairly straightforward it is not always that way, which is why it is best to work with an Iowa bankruptcy lawyer.

Chapter 13 repayments are not just based on a math calculation. Instead, they are based on what is a reasonable assumption of what you are able to pay back to your creditors and still keep up with your normal household and family expenses.

Your Chapter 13 repayment plan is typically submitted with your petition to the U.S. Bankruptcy Court, and it is put together by you and your Iowa bankruptcy lawyer. By and large, it is drafted with an eye on various factors such as your income and the existing means test in your state. The means test is the figure that measures your income against the average income for your state.

Assets you have in your possession are also a part of the calculations. Once the lawyer has worked with you to figure out what you own, he is able to determine which assets are exempt and which are not. Put another way, bankruptcy law says unsecured creditors get at least as much as they would if your non-exempt assets were sold.

To roughly calculate what you would be paying, you use your monthly net earnings as a starting point, which is your after tax income, less deductions for things like pensions or health insurance. These are balanced against your living expenses (mortgage, rent, car payments, insurance, utilities, clothing, food) and other costs associated with daily living.

What many people do not realize is that credit card payments, and other unsecured debts are not rolled into the calculation largely because they get paid, in part or fully, once the bankruptcy repayment plan is in place. Late fees and interest on overdue accounts is often waived in Chapter 13 plans. However, in order to find out what you will and will not be paying, the details need to be worked out with an experienced 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.

If you have nowhere else to turn because your debts are completely overwhelming, it may be time to consider bankruptcy protection
Let’s face it, the economy is still rocky, but we still have to pay the bills. No one else will pay them for us, although that would be great if they did. These days there are a lot of Americans living from paycheck to paycheck and using credit cards to fill in the gaps when they do not have cash.

That kind of behavior, while totally understandable, will land them in financial hot water. The cycle of only paying the minimum on the cards continues, but so do the purchases, and one day the bill is staggering enough to make the person realize there is no way they can keep living like that.

Do you have high credit card debt, creditors calling you and unpaid medical bills and just not enough cash to pay any of it in full? Are you being harassed by creditors, receiving letters in the mail, or getting a notice of garnishment at work? If you are, it is time to talk to a qualified and experienced Cedar Rapids bankruptcy lawyer.

Filing Chapter 7 will stop the creditors cold and discharge certain types of unsecured debt. Chapter 13 may stop a foreclosure and allow you to set up a repayment plan. Those are just the highlights of what filing for bankruptcy protection may offer you. Typically, which chapter you elect to file under has to do with your circumstances when you file. No two cases are alike and your Iowa bankruptcy lawyer can walk you through the steps you need to confront to start a new financial life.

At one time, you could just file for bankruptcy and be done with it. But now tougher laws have made the process more difficult in order to prevent people from defrauding the system. Generally speaking, the Chapter 7 bankruptcy route is the least expensive and quickest way to file, and ideal for those with a limited income and not much to protect in the way of assets.

You may file under this Chapter if you are:
– An individual
– A married couple
– A partnership
– A corporation

In a Chapter 7 proceeding, the court-appointed trustee identifies non-exempt assets and liquidates them to pay your creditors. There are some exceptions to this rule, such as there is the ability to keep secured property if you can negotiate a repayment plan with creditors. Make it a point to ask your Cedar Rapids bankruptcy attorney how this chapter may affect your situation.

If you do not meet the requirements to file Chapter 7, there is always Chapter 13 as an option. This chapter lets you:
– Keep your assets
– Keep your home
– Keep your possessions
– Stop creditors from calling

Lets you pay back a portion or all of your debts based on a restructured debt repayment plan over a three to five year period.

In a Chapter 13 proceeding, trustees are assigned to oversee the collection of your debt repayments and are also responsible for distributing those payments to the creditors.
You need to be aware that not all of your debts can be discharged under either chapter. To find out what you cannot discharge, have this conversation with an Iowa bankruptcy lawyer.
The highlights of what you cannot discharge are:
– Spousal and child support
– Debts as a result of fraud/embezzlement
– Debts owed on tax advantage retirement plans
– Debts not included in your debt repayment plan
– Certain taxes
– Debts for maliciously causing injury to another individual or property
– Personal debts for any damage caused if DUI

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 lawyers get asked this question a lot. Does filing bankruptcy stop garnishments?

In actual fact, the proper term for taking money out of your paycheck is wage deduction procedure. It probably does not matter what it is really called because when you are getting money taken out of your pay, it hurts. You just want to know if it stops when you file for bankruptcy.

A creditor cannot automatically garnish your wages unless and until they have a) a judgment awarded against the debtor and b) have filed a Wage Deduction Affidavit in court outlining that you owe them money. That affidavit has to certify they sent you a wage deduction notice letting you know they will be garnishing your wage for the debt owed.

When the affidavit is filed by the creditor, it is filed with a set of written questions that are sent to the employer as well. These are sent to allow the creditor to figure out how much money the employer owes the debtor and to determine the right amount of money to be deducted.

Once the employer gets the questions, they must file them with the court and ensure a copy of their answers go to the debtor and creditor. When that is complete, the court issues a summons to the employer for a court date finalizing how much and when your wages will be garnished.

This is really a painful process for many and something to avoid. If you want to know more about it, call an experienced Iowa bankruptcy lawyer and start asking questions about this and other bankruptcy processes. It is an eye-opener, but it is better to be aware of the consequences of your actions than not.

Here is where things get sticky. There is another kind of garnishment that most people do not know about. It is called the non-wage garnishment, and in that process, creditors may take some types of bank accounts or receivables to collect on the debt owed them. You may hear this referred to as a levy in some places. This information comes as a nasty surprise to people when they discover a creditor has been into their bank account(s).

Again, creditors cannot just institute a non-wage garnishment without following a process similar to the wage deduction procedure. But once the process is started, you have to know they are serious about collecting on their debt. And something else to know is that in a number of states, if a creditor does make a move on a bank account, the bank must freeze assets up to twice the amount of the judgment. That means your money is frozen until your case is sorted out.

So back to the question about how filing for bankruptcy can stop garnishments. The instant you file, the automatic stay kicks in and halts certain lawsuits, foreclosures, evictions, collections harassment and garnishments. For further information, speak to 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.

The last thing you want to do is mess up while filing for bankruptcy. Always use a trained bankruptcy lawyer.

If you want to make sure the bankruptcy process goes smoothly, and that you do not somehow accidentally get discharged because you made a mistake that could cause you to be charged with fraud, use an experienced Iowa bankruptcy lawyer. It is worth it as the lawyer will help you get through the filing without any glitches. After the bankruptcy, you will get to have a fresh start with your finances.

If you think you can do it on your own, or have someone else do it for you, you should know that there are nine prohibited activities according to section 152 of the U.S. Attorney’s Manual. Those prohibited activities are:
– Concealing property the debtor owns
– Making false accounts or oaths
– Making false declarations, verifications, statements and certifications is under the penalty of perjury
– Making false claims against the debtor’s estate
– Fraudulently receiving property from a debtor
– Extortion and bribery
– Concealing or transferring property
– Destroying or hiding documents detailing the affairs or property of the debtor
– Withholding documents from bankruptcy case administrators

In other words, you might want to think twice about trying to file bankruptcy on your own unless you have an in-depth grasp of all the rules, regulations and pitfalls of attempting to do it yourself. If you make a mistake and get charged with fraud, it does not all end with your simple, yet heartfelt plea that you messed up by accident.

Maybe you did, but when you have at least three different government departments and who knows who else on your case, the innocent mistake often ends up looking like planned fraud. Often the Department of Justice, the U.S. Bankruptcy Court system and the IRS jump into cases where they think there has been fraud. You really do not want the IRS investigating you. To put it bluntly, there is a whole lot at stake for you when you choose to file for bankruptcy, so ensure you do it the legal and above-board way by using an Iowa bankruptcy lawyer.

Filing your bankruptcy through the system and with legal counsel will prevent the probability of being prosecuted for bankruptcy fraud. If you think filing for bankruptcy is difficult, being prosecuted for bankruptcy fraud is 10 times your worst nightmare. Bankruptcy is tough enough for people without living in fear that they messed up when filing and that the government may come after them. By using an experienced Iowa bankruptcy lawyer, you will know you are on the right side of the law.

If you still think it is worth trying to file on your own and bend the rules, you might want to read some case studies about people who chose to try and fleece the bankruptcy system and got caught. You can read those current, 2011 cases at: http://www.irs.gov/compliance/enforcement/article/0,,id=228083,00.html

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.

Despite the sinking feeling that your life is totally ruined by declaring bankruptcy, there is opportunity after a bankruptcy.

You have to expect certain consequences when you declare bankruptcy, and one of them is a less than stellar credit rating. But, this is no longer the kiss of death that it once was. Nowadays, it is what it is and it happens to everyone, including stars, politicians and even tycoons. Think about Donald Trump who has filed for bankruptcy protection on numerous occasions.

While most of us are not Donald Trump, we can indeed come back from the crash and burn feeling caused by bankruptcy. It just takes time, perseverance and a plan that you stick to; a plan your Iowa bankruptcy lawyer can help you draft. It is very common for debtors to wonder if they will ever get out of the black hole of debt. Yes, you can and with good planning you can re-establish your credit once again. Bankruptcy is really no longer a death sentence.

Be aware that there are federal laws in place that dictate how long your bankruptcy stays on your credit file, and that it is the same for all states. In other words, your credit report will show a bankruptcy on your record for 10 years. That may sound like a dismal scenario, but consider this – if you buckle down and deliberately make a plan with the help of your Iowa bankruptcy lawyer and pay your bills on time for at least 18 months, you can rebuild your credit rating once again. It takes hard work, but the end results are renewed credit.

Getting even a part-time job will also help your credit score. The goal is to get steady work as soon as you can after declaring bankruptcy and start rebuilding your credit history. You will need to ask for your free credit report from the three main credit bureaus in the U.S. and check to ensure it is accurate. If not, get the mistakes corrected.

Another step to take is to ditch any extra credit cards you may have and just keep one or two. This sends the clear signal that you are going to be more cautious in your spending habits. If you cannot get a regular credit card, then apply for a secure credit card. All these things will help to rebuild your credit rating.

There are a number of other things you can do, and they include getting secured loans, making regular deposits to a savings account, and establishing a rainy day fund. It is hard work, but you did not go bankrupt overnight, so it will take some time to build up your credit rating once again.

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.

One of the biggest worries people have when they contemplate filing for bankruptcy is whether their credit rating will tank. It will, but you can recover.

It is virtually inevitable that your credit rating will be affected by filing for bankruptcy protection. But, you have to do what you need to do to face the overwhelming pile of unpaid debts that have driven you to the brink of bankruptcy. You cannot take the stress any longer. Bankruptcy will alleviate that stress and give you a fresh financial start. Just remember, there is more to bankruptcy than just paperwork, and for this reason you need to discuss your situation with an Iowa bankruptcy lawyer.

The biggest benefit people get from filing for bankruptcy is the automatic stay. This prohibits creditors from calling you and sending you letters. Understand, though, that some debts are discharged completely and some are put on hold temporarily. What type of bankruptcy you file also decides what you may pay back or not.

The first thing you will find out when you make an appointment with an Iowa bankruptcy lawyer is that your home will not be placed into foreclosure. Generally speaking, real and personal possessions are exempt from a bankruptcy. There are some exceptions, and you would need to speak to your lawyer about what they are.

Filing for bankruptcy protection does, in theory, halt all creditor harassment. But, not all creditors limit themselves to phone calls. This is when you discover there is a very fine line between being reminded you owe money and being harassed. Abuse calls at home and work are common and you only need to report them to your Iowa bankruptcy lawyer in order to get them to stop. Once your bankruptcy is filed, these annoying, harassing reminders are illegal.

Did you have property repossessed before you declared bankruptcy? You will be able to get repossessed property back so long as the creditor did not sell or auction it off. If you missed past payments, they can be rolled into a Chapter 13 plan. There are other things you need to know and the smartest move on your part is to deal with a competent Iowa bankruptcy lawyer who will guide you through the maze of declaring 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.