People not eligible to file a Chapter 7 bankruptcy may be eligible for Chapter 13. The key lies in protecting non-exempt assets.

“With the recent changes to the Bankruptcy Abuse Prevention and Consumer Protection Act (2005), it got harder for people facing a serious debt load to qualify to file for bankruptcy, because their income is above the state median. Others opt to file under Chapter 13 to protect non-exempt assets from being sold by a trustee,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

For people opting to file bankruptcy under Chapter 13, they need to know that the procedure is a great deal more complex than a Chapter 7. Chapter 13 takes into account a detailed evaluation of income and a person’s expenditures to figure out what would be a suitable repayment plan. Debtors with non-exempt assets who happen to have a below average income according to the state median will typically make payments over a three year period.

“If, however, their income is above the state defined median, the repayment period is over five years,” Ahrenholz said. The maximum repayment window of time allowed is five years. Certain requirements need to be dealt with prior to filing for bankruptcy.

“Before filing, the debtor get credit counseling at least 180 days before their papers are sent in, their unsecured debts must be less than $336,900 and their secured debts must not be in excess of $1,010,650. These particular figures change from time to time, largely because they are based on movements in the retail price index, Ahrenholz said.

There are some circumstances in which a debtor may not file. One of those is if they have willfully failed to put in an appearance for the court or did not comply with a court order during the last six months. The other situation in which a debtor may not file is if the bankruptcy was voluntarily dismissed after creditors went after the sale proceeds of any property they held a lien on.

“There are rules and regulations and exceptions to those rules and regulations. It’s best to ask a qualified Iowa bankruptcy lawyer what is applicable in your individual situation, as no two bankruptcies are alike,” Ahrenholz said.

Typically, to start the ball rolling for a Chapter 13 bankruptcy, a court where the debtor lives is served with a petition. Along with that petition there must be a schedule of liabilities and assets, a complete accounting of the person’s current salary and expenditures, a statement of financial affairs and any executor contracts or unexpired leases.

“There has to be a certificate of credit counseling too, which needs to outline a repayment plan. Wage stubs are required, as is a tax return,” Ahrenholz said.

There is more to this process and it is best to be prepared by discussing the situation and how to proceed with a dedicated and seasoned Iowa bankruptcy lawyer. “While your situation may be similar to someone else’s, the facts will vary in every case. For this reason, we take the time to walk you through what you need to know for your particular set of circumstances. If you have questions, feel free to call us for a free consultation. It’s our job to help you get your life back together again,” 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.

Most people who file for bankruptcy do so because they have no other choice. However, bankruptcy fraud is on the increase, making courts even more suspicious of legitimate petitioners.

“Unfortunately, even though the vast majority of those who have made the difficult decision to file for bankruptcy are legitimately in a financial bind, bankruptcy fraud is on the increase, something which is not good news. The more fraud there is, the less courtesy and consideration legitimate petitioners get. In other words, those really needing help are now being regarded with more suspicion,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

Even though a bankruptcy will dog a person’s footsteps for many years, the fact remains that the bills are paid and the financial future is a lot brighter. This one fact alone has prompted many to commit bankruptcy fraud.

“How do people commit bankruptcy fraud? Some of the methods used are quite sophisticated and difficult to track down. Typically, they hide most of their assets by either giving them to someone else during the course of the bankruptcy proceedings or will just not admit to having them,” Ahrenholz said.

The assets they do declare are then sold to pay off their debts. When the whole thing is over, they simply gather up the rest of their property and get on with their life – their new, debt free life. Obviously, this has come at the expense of someone else’s actual and real dire need to declare bankruptcy. While this is not the only method used to commit fraud, it is the most common one and the easiest to pull off.

Bankruptcy fraud hurts those who really have no other options. The fraud artists are using the system to their advantage and tying up resources that others could desperately use. If and when someone pulling an unethical and illegal stunt like this gets caught, it makes the court system regard those who file with a greater degree of suspicion. For those who are in a legitimate position to file bankruptcy, a jaundiced point of view on their petition from the courts is the last thing they need. They have already been through enough.

“If you have a legitimate need to file for bankruptcy, give my office a call and we will walk you through the process. Your first consultation with us is free. The advice will point you in the right direction for a fresh start on a new, debt free life,” 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.

Those who cannot afford the cost of bankruptcy wind up in a shadow economy, or informal bankruptcy situation. It is a strange state of affairs, brought on by the failing economy.

Whether you know it or not, there are people who need to file bankruptcy because they can no longer handle their debt load. They need to file for relief, but they do not have the money to pay the lawyer. They need cheap bankruptcy because today’s costs are going up exponentially, with no apparent end in sight.

Thanks to the economy and a 2005 law passed to make filing for bankruptcy even more difficult, there is a new group of debtors referred to as the unofficial bankrupt debtors; the people who are all but bankrupt but couldn’t afford the lawyer’s fee to make it official. Many of these people refer to themselves as too poor to go bankrupt. The latest figures indicate that only a small portion of those in real financial trouble can afford to file and do so. The rest languish in the shadow economy, unable to move forward with their lives and on hold financially with their hands effectively tied.

All of this begs the question: why are so many lawyer’s fees so high that people cannot afford to pay them to be able to file for bankruptcy? The hike in fees largely has to do with the law passed in 2005 that made things harder to file and added on more paperwork and forms. This increased the time a lawyer had to spend to assist a client and thus, up went the fees.

In this current economic crunch, it would make more sense for lawyers to charge smaller fees and help people get their lives back on track. There is no shortage of needy debtors who would pay a lesser fee for financial relief. It is almost bizarre to think that a debtor in desperate financial straits needs to save up to go bankrupt. Informal bankruptcy does not just impact on the person who cannot file because they cannot afford it; it affects everyone because it impacts the national economy. Delaying filing bankruptcy is like putting off going to a dentist when your tooth hurts. Wait too long and the pain is worse and there are more problems.

One solution is to file pro se, and do it yourself. This can be a fairly risky and scary option if you do not know what you are doing and what the exemptions are in your state. You could use bankruptcy petition preparers for the paperwork, but without the eagle eye of a skilled bankruptcy lawyer, this is taking a huge risk that something could be missed. Is there an answer to this dilemma?

Yes, find a seasoned bankruptcy lawyer that completely understands what you are going through and does not charge you an arm and a leg to file for bankruptcy. Find one in Iowa that has one of the lowest rates for filing you will find; one whose service is based on a compassionate understanding that filing bankruptcy is something you have a right to do when you need to do it.

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.

Most people facing bankruptcy can afford a lawyer’s assistance, especially in Iowa.

Not all bankruptcy lawyers have rates so high you cannot afford to pay them. There are some that have very reasonable rates and will go out of their way to help you, simply because they understand what it is like to be facing bankruptcy. They offer competent services, are dedicated to helping you through the process and have only your best interests in mind.

These days, it is not unusual to meet a lot of people who are struggling with the specter of going bankrupt; a personal decision that causes many people anxiety, guilt and shame. They feel like they are between a rock and a hard place and just want to salvage their lives and get on with things as best as they can. When they are facing a very real cash crunch where the income does not meet outgoing payments, it is time to make decisions about the future. The awful economy is a burden to many in America, with more and more getting into serious financial trouble. This raises the question of how debtors can raise cash to pay a bankruptcy lawyer’s fees.

If you do not think that things are that bad, consider this. During 2010, there were 1,572,597 bankruptcies filed across the United States. This is 20 percent higher than 2009, when the figure was 1,306,315. This is relevant because the latest figures are the highest for any period since the introduction of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

The idea behind this act was to make it harder and more expensive for anyone to file bankruptcy. Put another way, it tightened restrictions on filing bankruptcy. You would think filings would go down, but instead, in spite of the new law, increasing numbers of Americans are saying bankruptcy is the best option for them to solve their financial predicament and unmanageable debts.

This drastic rise in the number of bankruptcy filings is directly attributable to one factor – people losing their jobs. If you take a good look at the unemployment stats, you will notice that the U.S. still hovers at about a 10 percent unemployment rate. That is a frightening statistic on its own, but add in the fact that the economy has driven service and manufacturing jobs offshore and you get a recipe for bankruptcy. The numbers of foreclosures are creeping up every passing day. Joblessness is the number one reason cited for filing bankruptcy.

When you lose your job, you tend to lose medical coverage. If you have a medical crisis, the bills will drive you to the end of your rope. It is no wonder people choose bankruptcy as the only option to get back on their feet again. But how does a bankruptcy applicant pay their legal bill? This is a good question, as debtors are finding they cannot pay the bill to file because lawyer’s fees and filing fees have gone up and, thanks to the 2005 act, there is even more paperwork and additional forms.

While it may look dismally bleak when it comes to trying to file for bankruptcy and finding the funds to pay for the lawyer, not all lawyers charge higher fees. There are skilled and compassionate bankruptcy lawyers in Iowa who will help you get your life back.

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.

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.

Depending on the state in which one lives, there may be access to state or federal exemptions when bankruptcy is declared. Some states opt for federal exemptions, while states like Iowa opt out and provide state exemptions.

“Filing for bankruptcy means that you have certain exemptions. In a nutshell what that means for you is you are allowed to keep a certain amount of your assets, meaning they are untouched. This means you have the ability to start over again and not be caught up in the vicious circle of debt entrapment,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

If a personal residence is exempted up to a certain dollar figure, it will mean that if the home is exempt up to $45,000, the person filing bankruptcy may have to sell to clear the debt for anything above the value of $45,000. While some of the rules and regulations may seem confusing and intimidating, hiring a competent Iowa bankruptcy lawyer will make the filing go smoothly and without the anxiety most people facing bankruptcy experience. As with anything relating to the law, things change, and exemptions are subject to adjustment every few years to match the current consumer price index.

Depending on the state, there may also be a homestead exemption. “Here is how that works,” Ahrenholz said. “If the state homestead exemption is $25,000 and you have equity in your home valued at $110,000, one would need to file Chapter 13 bankruptcy or sell your home. After the sale, you keep roughly $25,000, with the rest going towards paying your debt. Those living in Iowa are very fortunate because there is an unlimited homestead exemption with a few exceptions to that general rule.”

“Additionally, there are federal non-bankruptcy exemptions and they may be filed under your own state’s exemptions,” Ahrenholz said. Those non-bankruptcy options cover pensions for military service employees, railroad workers, civil service workers and foreign-service staff. “You will also find other exemptions in this area that cover things like public benefits such as disability benefits for government workers and death benefits. There are other areas, but it’s best to ask about those when you speak to your Iowa bankruptcy lawyer,” he said.

There are exemptions that only apply in certain cases, meaning filing bankruptcy is a case-by-case scenario and its best not to assume that exemptions one may have read about are applicable straight across the board for everyone. When in doubt, discuss bankruptcy dos and don’ts with a skilled 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.

Without getting into the deep nitty gritty of Chapter 7 bankruptcy filing for Iowa, there are some basics that most people need to know to file.

Getting a Chapter 7 bankruptcy if you live in Iowa is not really that much different than if you were in another state. In other words, the process is fairly similar, no matter where you live. It will also take just about the same length of time to process. Really, the only differences may be in the details.

To get a Chapter 7 Iowa bankruptcy rolling there are usually four steps that need to be taken, with the first one being to check what the median income related requirements are before proceeding. If you do not meet this requirement, Chapter 7 may not be available to you, but a Chapter 13 might be. Even for those who are above median income guidelines, a Chapter 7 could still possibly work if you have certain allowable deductions that bring your disposable monthly income within Chapter 7 standards.

Here is what happens: your gross income for a particular period of time is checked against the median income of the state for the same time period. Generally speaking, the median income for a single person is roughly $39,803 a year. Once that has been figured out, you will need documentation and find a way to pay the legal fees. Fees tend to vary and this is something that needs to be discussed with your lawyer. You will find the filing charge included in the fees, along with the lawyer’s fee as well.

For the documentation process, you will need a credit counseling certificate and every bill that you want discharged. The bills must be complete and show a full address and your account number and total owing, plus any payments already made.

Along with this material, you will need in depth information relating to car or home loan creditors, six months of pay stubs, proof of a source of income if you have no wage information and copies of tax returns for the last two years. This may be just the tip of the iceberg when it comes to what the bankruptcy process requires, but your lawyer will advise you as to what you need to produce. Just be prepared to produce whatever is required.

Once you have all your information gathered, it is time to sit down with your bankruptcy lawyer and go over the paperwork to make sure everything that is needed is there. Your next step is the hearing in court.

Be prepared for your case to take as long as nine weeks. However, once you have gone through the preparation process, your lawyer will do most of the rest, and you will be able to start all over again; a really good feeling after months of anguish over unpaid bills.

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.

Most people think that if they declare bankruptcy they can never get mortgage refinancing. That is not the case, as it is possible to obtain a mortgage loan after bankruptcy.

“A lot of people do not realize that they can get mortgage refinancing after bankruptcy. In fact, there are a variety of options. One of them is using a qualified attorney who specializes in helping borrowers to file that kind of paperwork. It is a good idea to have a skilled bankruptcy lawyer on your side, as they help mediate with your creditors. The ideal attorney is up-to-date and very knowledgeable about legal finance procedures and may be able to assist you in getting a good loan,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

It is inevitable that after declaring bankruptcy an individual’s credit rating will affect the kind of loan he or she is able to obtain. A low credit score will put an individual out of the ballpark for some kinds of loans, because creditors view the low numbers with a jaundiced eye. Mortgage refinance loans may also be available, but they may also come with sky-high interest rates, because loaning to someone who has gone bankrupt is viewed as a high-risk venture.

“For this reason, check the refinancing fees first. You may make the decision at that time to wait a few years to prove you are able to handle your debts now. Doing that will put you back in the driver’s seat and you will have a chance to apply for cheaper loans,” Ahrenholz said.

In the crush of information that those who have gone through bankruptcy face, they may not know it is a smart move to pre-qualify before going for a bankruptcy mortgage refinance loan. The long and short of it is that being pre-qualified gives the individual a solid idea of how much he or she can borrow.

“From there, it’s usually just a matter of finding mortgage lenders who offer ‘damaged credit’ programs. It’s not as hard as you may think to still find a way to re-finance your home. With good legal assistance, your bankruptcy should proceed smoothly and you will come out the other side with a new perspective on life. While facing bankruptcy is difficult, it doesn’t need to be when you have the right kind of help,” 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.