Bankruptcy is a complicated process, and it’s more difficult to file bankruptcy due to new federal laws. Consumers are required to receive credit counseling from an approved agency. The counseling must occur a maximum of 180 days before filing bankruptcy. Consumers are also required to undergo a means test to determine if they can repay any of their debt. It’s important to have an Iowa Bankruptcy Lawyer. The Lawyer gives you legal advice to help you make the right decisions in a bankruptcy. They’ll also help decide which bankruptcy is best for you.
One of the main benefits of a bankruptcy is that debt collectors have to stop trying to collect from you. If you’re behind on the mortgage, the note holder cannot file foreclosure. To get the process started, the lawyer petitions the court to file bankruptcy. Your creditors meet with the lawyer and court representatives. Afterwards, a repayment plan is submitted to the court. New laws require consumers to hand over a large part of their income to repay debt. And, if you don’t follow the repayment plan, the bankruptcy will be dismissed.
If a consumer’s income is less than the state’s median income, they may be able to file chapter 7. Filing chapter 7 involves liquidating assets to repay debts. The Iowa Bankruptcy Lawyer will advise the consumer as to whether certain property is exempt or not. Under a Chapter 13 bankruptcy, a repayment plan, for the next three to five years, is set up. The consumer pays money monthly to a trustee, and they divide the money among creditors. The best thing about Chapter 13 is that your debt is restructured, and you can pay over time. You’ll get to keep your house, as long as you’re current on the mortgage and bankruptcy payments.
The Iowa Bankruptcy Lawyer will guide you through every step of the bankruptcy maze. Bankruptcy has been a life saver for many people during the past few years. People lost their jobs and some were forced to take paycuts. However, the same amount of debt still had to be paid. It’s wonderful that there’s a legal tool to help us survive difficult financial times.