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.