Many people are not aware of the benefit a mortgage lien strip. If you have taken out a second mortgage on your home to try and keep your head above water, but foreclosure is looming, filing Chapter 13 will halt the process, no matter how far along it is.

Chapter 13 bankruptcy proceedings have a potent tool that allows a debtor to remove the second mortgage. This is beneficial during a housing crisis that may have caused the value of a home to plummet below the amount of the mortgage.

The removal of the second mortgage is referred to as lien stripping, and it is legal in all 50 U.S. states. To qualify for this, the value of the debtor’s house must be lower than the balance of the first/primary mortgage, meaning the second mortgage is not supported by any equity, and turning the second mortgage into an unsecured loan. This process may not be available to everyone, and for this reason, when declaring bankruptcy, it is necessary to discuss the various options that may apply with an Iowa bankruptcy lawyer.

In a Chapter 13 repayment plan, the second mortgage is regarded as an unsecured debt, such as medical bills or credit card bills. Since the bills are paid on a pro-rated basis, in accordance with the court-ordered Chapter 13 repayment plan, the amount to be paid on a second mortgage becomes a mere fraction of what it would have been had the lien stripping option not been applied.

When the Chapter 13 repayment plan has been completed, meaning the debtor has made all court-ordered payments, the second mortgage lien is permanently removed from their property. Before choosing this route, it is wise to know the value of the residential home.

To this end, the home will likely need to be appraised. Additionally, homeowners need to check what their property tax appraised value is, as since the recession hit, property tax appraisals have become higher than the appraised value of the home. Again, this is something that needs to be reviewed with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you are filing a Chapter 7 bankruptcy, which is by far the most common bankruptcy declared in the U.S., federal income taxes may be discharged only when the taxes in question are more than three years old, were assessed on previous returns at least eight months prior to seeking bankruptcy protection, and you did not file a fraudulent tax return or try to avoid paying taxes. The issue is that if you are seen to have made an effort to pay the taxes, but just did not have enough funds at your disposal, you may be able to discharge your federal taxes.

The courts may consider discharging a tax debt, if the IRS has not already filed a tax lien on your assets. If they have, the lien will then carry over through the bankruptcy, meaning the IRS may still seize your property to collect on your debt. By and large, debtors may find this process more beneficial for them, instead of agreeing to what the IRS refers to as an “offer in compromise.” That would, if the debtor accepts it, mean they must make payments for a long time to come.

Federal tax liens are a tricky area, and you really need to understand how this process may work, by consulting with an Iowa bankruptcy lawyer. For instance, any federal lien filed against property prior to a bankruptcy, should only attach to the equity you have at the time the bankruptcy petition is filed.

Make certain that before you file for bankruptcy protection that you are up-to-date on all of your tax returns and amendments before going to the 341 meeting. The fact is there are a large number of bankruptcy trustees who refuse to have a 341 hearing if you are missing tax returns for the last four years. If information is missing, the trustee will not know if you have non-dischargeable tax liability, which makes a difference in how your case is handled. In other words, be prepared before filing Chapter 7, and do it in partnership with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

For those that don’t know what the acronym HAMP means, it represents a program put together by President Obama, referred to as the “Home Affordable Modification Program.” It had good intentions, and was supposed to be designed to help close to 4 million householders facing bankruptcy and foreclosure. Unfortunately, good intentions are about all the program did manage to deliver.

There is quite a bit of speculation over why the HAMP program failed, and most people lay the blame at the doorstep of the complicated qualifications people needed to meet. The target group it was supposed to help could not understand how to access the program. Add to that an initial mere 10 percent slashing of the principal, and it amounted to not being worth even trying to use it.

It looks like the program won’t have too much of an effect on bankruptcy filings, not that its original intention was to prevent that. However, it was intended to help some homeowners keep their homes. While this program may have helped a few, the stark increase in filings over the last few years is dismal.

Foreclosures are virtually the number one cause of people seeking bankruptcy protection, and if you are staring foreclosure in the face, but still happen to have a sustainable income, you just might qualify for HAMP. The advantages are tangible for homeowners who are still employed and have a high interest rate. This program has the ability to lower an interest rate by up to 2 percent, extend a mortgage term up to 40 years and waive interest charges on a certain portion of the principal. While this sounds good on the surface, the biggest glitch so far, is being able to qualify for HAMP.

To qualify, you must be behind on your mortgage payments or be facing a risk of defaulting. You should have gotten your mortgage before January 1, 2009 and you must live in the mortgaged property. The principal balance should not be greater than $729,750 for a one-unit house. While this sounds easy enough on first glance, there are some loopholes that can backfire on the homeowner. For instance, if the owner is approved for a modification, they have a three month trial where their usual mortgage payment is made. Once they meet that requirement, the modification is to become permanent.

However, one large loophole in the program is that the lender gets to make the determination if the modification is permanent. Needless to say many homeowners have reported being put off by the bank or denied for a variety of reasons, typically leading to a legal battle; the last thing a stressed homeowner needs.

If you don’t have a sustainable income or enough money to face possible legal difficulties, this program may be a waste of time for you. If you are already in a bad financial situation, an added legal confrontation won’t help matters any. The best advice an Iowa bankruptcy lawyer may give you, with regard to HAMP, is try to avoid it and discuss your situation in detail with the lawyer. Bankruptcy isn’t easy, and the more complex it becomes, the more confusing things are for the person trying to get out from under a crushing debt load.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

While the bankruptcy itself is quite complex and complicated, there is no doubt about what an automatic stay means when bankruptcy protection is sought. Once you have filed, all of the creditors that you listed are told you have filed for bankruptcy via first class mail. This doesn’t mean the calls stop the day you file, as typically, it takes about seven-to-ten days before the phone calls will end completely.

If you do get calls from creditors, just give them the name and phone number of your Iowa bankruptcy lawyer. You may also want to provide creditors with your case number and ask that this information is noted on your file. If, for some reason or other, you are still getting phone calls and letters in the mail, call your lawyer and give him the creditor’s information. At this point, the attorney will send the creditor a “cease and desist” letter, which typically stops harassing creditors cold in their tracks.

It’s not unusual for creditors to still keep calling and sending mail, even at this point. If they do, they are in direct violation of your automatic stay and you need to contact your Iowa bankruptcy lawyer with a detailed log of all calls and letters. Your lawyer can then file stay violations against creditors who overstepped their bounds.

Filing for bankruptcy is not easy and the less stress you have to deal with, the better. You have a difficult journey ahead of you and many decisions to make about how to overcome your desperate financial situation. Some people feel enormous guilt over declaring bankruptcy, others feel it is their right and may have done it a time or two.

Declaring bankruptcy is not a shameful decision. It is often fueled by desperate necessity, by honest people who got into a financial bind and didn’t realize until it was too late, how deep they were in the hole. The most common sense approach to declaring bankruptcy is to speak to an experienced Iowa bankruptcy lawyer and find out what Chapter may apply in your situation. Chapter 7 is not for everyone. Chapter 13 isn’t for everyone either. It depends on the circumstances of your case.

Just because your friend or neighbor may have declared bankruptcy does not mean their case was the same as yours. No two cases are alike in detail. However, they are alike in process going through bankruptcy court. This is not something that an individual should try without the help of a skilled bankruptcy lawyer. There is too much at stake.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

One of the ways to stop a default judgment is to file bankruptcy. The judgment is a court order demanding the debtor surrender money or property to the creditor; if you have such a judgment against you, it means you failed to pay off a type of loan or a credit card. When the creditor goes to court to get a default judgment, it means the court has ruled against the debtor for not appearing in court.

If you want to put a halt to a default judgment, temporarily, you can file bankruptcy. This stops any and almost all legal action, thanks to the automatic stay. Even if a creditor has started to enforce their judgment against you, they must, by law, cease and desist until your bankruptcy is handled. This automatic stay also means they are not allowed to call you about the outstanding debt and/or judgment.

It is important to note that a formal discharge of your bankruptcy acts to formalize the reprieve the automatic stay granted. Even though the discharge and a default judgment are court orders, the bankruptcy supersedes a default judgment, putting a halt to all forms of collections, including wage garnishment. Typically, in most jurisdictions, the debtor needs to file paperwork to vacate the default judgment, even if the bankruptcy discharge acts as protection from its enforcement.

Another thing you should understand is that the protection you receive from the automatic stay against a default judgment only remains in place as long as your bankruptcy case. If your case ends up being dismissed, you lose any protection you had, and thus, the creditors will start the collections process once again. This is something that you need to discuss with a skilled an Iowa bankruptcy lawyer, as it is far too complex a process to attempt on your own.

If you are declaring bankruptcy, it only makes sense to do it according to all the rules and regulations. Failing to do so could leave you back at square one, struggling to get out from under your bills and various judgments. Bankruptcy is not an easy process, but if it is done in conjunction with an experienced Iowa bankruptcy lawyer, the process can go relatively smoothly.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Declaring bankruptcy is a stressful thing to do: with so many details, documents, rules, regulations and various meetings, it can be a nightmare to manage everything going on. The most upsetting part of bankruptcy for most is the threat of foreclosure.

Generally speaking, foreclosure is when a lender takes action to repossess someone’s property — property they have a mortgage against, resulting from money lent to the debtor. In the case of a mortgage, the home is considered to be the collateral. Thus, if an individual stops making payments on their mortgage, the financial institution holding the paper on that property has the right to take the property back on default.

The foreclosure process does vary slightly from state to state; if you live in Iowa, you will want to discuss the steps with an experienced Iowa bankruptcy lawyer. In general, the overall process is the same, and that is once a debtor has not paid for 90 days, a notice of default is filed with the county to initiate foreclosure. There is a grace period of sorts in this process, where the debtor does have the right to make their mortgage current by catching up on all the payments, or at the very least, working out a plan with the lender.

If neither of these two options is viable, the financial institution will put the home up for auction, which typically takes place on the county courthouse steps. The highest bidder takes the home, and the bidding process is carefully monitored by a bank trustee, whose goal it is to cover their mortgage, or at least limit their loss. If this is not possible, the bank trustee bids until they secure the home back, with plans to fix it and put it back on the market.

Bankruptcy can be a very confusing process, and even though it is possible for a debtor to file their own bankruptcy papers, it is not advisable to do so. If something is not done properly, according to the law, the debtor takes a real chance that they could have their petition dismissed, or they could be charged with fraud. There are far too many ins-and-out for a debtor to take the chance on doing the wrong thing. For this reason, consulting with an Iowa bankruptcy lawyer is highly recommended.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Imagine facing foreclosure, losing what you worked so hard to attain. That is a 10 on a scale of 1 to 10, with 10 being the maximum stressor. It hits hard at the foundation of everything we identify with, work to attain, take pride in and call our haven. While losing your boat may not bother you quite as much, losing your home is a completely difference scenario.

There are a variety of reports available online which clearly indicate that foreclosures have more than just economic repercussions. In fact, economic difficulties tend to go hand-in-hand with health problems. Debt and foreclosure can bring on health issues. The reverse could also be true, that health difficulties bring on foreclosure, with the added drawback that if someone goes into foreclosure while ill, their symptoms will likely get worse.

The core finding of many of the recent surveys of those about to go into foreclosure, were in foreclosure, were about to file bankruptcy or had started the process, showed that the people felt their physical and mental health had deteriorated over the last two years. Their levels of deprivation, anxiety and depression were exceedingly high.

How do you pay bills if you have no money and no hope of getting any? In many cases, if you wish to save your home or salvage your present financial status as best you can, seeking bankruptcy protection with the assistance of a qualified Iowa bankruptcy attorney, will put an automatic stay on most debt collection procedures.

The foreclosure crisis is epidemic in the US today, and according to the National Bankruptcy Research Center, filings in Chapter 7 and 13 are on the upswing, despite a glimmer of hope for the nation’s economy. The increase in Chapter 7 filings is of interest, largely because in 2005, a means test was introduced to direct people to Chapter 13 filings instead. Chapter 13 would mean they would still need to repay a portion of their debt. However, with the economy being what it is, the means test is getting a good workout.

Bankruptcy doesn’t just affect a certain class or social strata of people. It hits everyone and anyone, even those with higher incomes and education. It could be just around the corner for you. If you are facing bankruptcy, and have no other option, filing will halt all collections activity. This may help your medical situation as well, although it’s not a recommended cure for stress. However, the automatic stay may help you get your life together and go forward. Don’t attempt to do this without the assistance of a seasoned Iowa bankruptcy attorney.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Even though the economy is beginning to show some signs of recovery, there are still many people in over their heads in debt. This will likely still be the case for the better part of this year and into the next. In 2010 alone, there were close to 1.2 million bank repossessions, leaving many without their homes. The more foreclosures, the more bankruptcies, as these two things go hand in hand; filing for bankruptcy is just about the only thing a debtor can do to save their house, or buy some time to deal with their situation.

The minute you file for bankruptcy protection, the court orders all collection actions to stop immediately. This is referred to as an “automatic stay,” and is applicable to all kinds of bankruptcy filings. The stay simply means that it puts a halt to just about all lawsuits (though there are some exceptions), utility shut-offs, evictions, foreclosures, attachments, repos and other forms of debt collection harassment.

When you file bankruptcy, all of your creditors, including the mortgage company, have to go through a bankruptcy court trustee. This means you don’t deal with them until your case is dismissed or discharged. If you are still in default on discharge or dismissal, the lender will still go through foreclosure to repossess your property. However, there is generally a very long period of time between when you file and when the mortgage company takes possession of your house.

This period is one in which you can negotiate your mortgage, depending on what kind of bankruptcy you filled and what state you live in. One thing you could try is offering the mortgage holders a deed-in-lieu of foreclosure. If they choose to accept it, they can’t collect any short-fall between the actual value of the house and what you owed on it. This may or may not work, depending on what state you live in. Always check with a qualified Iowa bankruptcy attorney to find out what options you have at your disposal.

It’s no secret that bankruptcy laws and foreclosures are very complex and complicated; something you do not want to tackle on your own. Hiring a competent and experienced Iowa bankruptcy attorney is a smart move on your part to help you understand what you are facing and how it will affect you now and in the future.

The bottom line? There is no “easy” way out of debt, not when you are in over your head. It happens. That’s life and sometimes, life gets out of hand. This is why you will need a skilled bankruptcy attorney helping you through the maze of laws, rules, regulations and piles of paper.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

While there are some enterprising individuals who may be able to handle filing a Chapter 7 bankruptcy on their own, there are far too many important legal elements and considerations that may inadvertently be overlooked. Every bankruptcy filing must adhere to a multitude of precise rules and regulations, and every debtor must meet stringent requirements and produce specific documents and information.

In the pre-filing stage, some cases require careful analysis and strategic planning to address seemingly-innocuous circumstances.  In the post-filing stage, while the case is pending, some cases must undergo additional strategic planning and negotiation.  It is extremely risky for a debtor to attempt to navigate filing and addressing these issues on their own.  One mistake may well cause the case to be dismissed.

If you are planning to file Chapter 7 bankruptcy and want to ensure that you are meeting all requirements, hire a competent Iowa bankruptcy lawyer to reduce the risk of making a mistake, and to rest assured that you have chosen the most prudent method of dealing with your financial situation.  Your bankruptcy lawyer will not advise you to seek bankruptcy protection if there is another way for you to manage your financial issues.

When you first meet with a bankruptcy lawyer, you can expect to have an honest discussion about your finances. If you have questions, this is the time to ask them. Ask about the bankruptcy process, how to file, what you need to provide in terms of documentation, and what to expect once your petition has been filed with the court. Declaring bankruptcy is a decision with long-term ramifications, and your Iowa bankruptcy lawyer will explain how bankruptcy affects you and how to later rebuild your credit.

One of the main reasons Americans file Chapter 7 bankruptcy is to get their mortgage back on track. They are overwhelmed by all their debt and may be in danger of losing their home. They do not know how to prioritize their mortgage payment without frustrating other creditors attempting to collect on credit cards, medical bills, and loans. Before long, they find that they are facing pending lawsuits, or judgments have been entered, and garnishments are depleting paychecks. They quickly become unable to make utility payments, buy groceries, and put gasoline in their vehicles. Perhaps they are unemployed and have no employment prospects in sight. They fall behind and cannot catch up their payments, despite how hard they may be trying. These are the kinds of situations that typically drive people to speak to a bankruptcy lawyer.

There is no shame in filing for bankruptcy. It is called “debt relief” for a reason. Just make certain that bankruptcy is the best debt relief plan for you, and make sure it is done correctly by hiring competent counsel.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Public Access to Court Electronic Records, also referred to as PACER, provides a debtor access to the information needed to keep track of the post-filing status of his or her case. Though debtors may get information directly from your bankruptcy lawyer or via a court-appointed trustee, some debtors find it frustrating to wait for the information, as lawyers and trustees may not be able to respond immediately. With PACER, you simply need to go online to check your bankruptcy status quickly and easily.  Just visit the site at: http://www.pacer.gov/ and register for a login ID. This system offers access to bankruptcy courts across the U.S., provided you have a valid password and ID. It is easy to register: enter your name, home address, phone number, the name of your nearest living relative, and your date of birth. You will then need to authenticate your registration. To do so, use a valid credit card to finish the registration process and you will receive an assigned password. While it may seem odd to ask for a valid credit card number if the debtor has credit card debt, many individuals do still have valid cards they may use for registration purposes.

Once you have successfully registered, the password is emailed to you, or, if you did not provide an email address it will be sent to you by regular mail. PACER will bill you to view pages. The rate may vary, but typically is about ten cents per page, with a viewing limit of 30 pages. If you are searching for court transcripts, you do not have to pay the 30-page fee limit. Also, parties to a case and their lawyers may get one free copy of all e-filed documents.

Once you have your login and password, you may search the complete list of U.S. bankruptcy courts to determine which one is handling your case. Typically, the courts are separated into districts: In Iowa, select from either the Northern or Southern District. Cases filed in the eastern half of Iowa will be predominantly Northern District cases.  Cases filed in the Des Moines area and west are likely to be Southern District cases.

In order to locate information specifically about your bankruptcy case, you will need to enter your birth date, name and Social Security number. Once this information is verified by the system, all information relating to your case will be made available to you, including the current status of the bankruptcy petition.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

There are only two pieces of information needed, should you choose to report bankruptcy fraud: where the person filed, and the individual’s full name and address. Include a brief note about the situation, with as much information as you have available, and send it to the U.S. Trustee Program at: Executive Office for U.S. Trustees Criminal Enforcement Unit 20 Massachusetts Avenue, NW Suite 8000 Washington, DC 20530. If, by chance, you have their case number, they would appreciate knowing that, as well. You may be able to find that information online, as all bankruptcy case files are readily accessible to the public.

In the correspondence sent to the Trustee Program, outline what kind of fraud the person allegedly committed, whether that is hiding an asset, illegally transferred it or lied about owning it. Put it in your own words. No one expects you to be familiar with legal terminology. Just be as specific as possible about the incident you are reporting, and how you came to know the details of what supposedly happened. If you want to include your contact information, you may. You may also call the police or the national U.S. Trustee’s office. Your other option would be to call your local state field office or bankruptcy court; numbers for those locations are readily available on the U.S. Trustee Program’s website. Once you have given the information to the authorities, you will not hear back from them on the status of any investigation that may or may not be underway.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

A debtor’s credit rating can be hit with as much as a 100-point deduction. However, the credit rating does not need to stay at the same low level for the ten years that the bankruptcy will be on record. There are a number of ways to regain points, even after bankruptcy. It just takes time, patience and some effort. As incredible as it may sound, a debtor may even start to rebuild their credit rating the day after it has been discharged. A good Iowa bankruptcy lawyer may advise their client of this during their consultations.

The first thing a debtor needs to do is to get a copy of their credit report and carefully go over it. Credit reporting agencies do not always have accurate information. Even though a bankruptcy lowers your credit rating, you may find out that there are other inaccurate or expired pieces of information you may be able to have removed, and when removed will increase your score. If you do find things that don’t add up, you should dispute them. To do so, check each credit reporting agencies website for details on how to file a dispute.

Even immediately after getting discharged from your bankruptcy, you may apply for a new credit card. While most of your credit cards may have been included in your bankruptcy process, you are likely to still qualify for either a secured or unsecured credit card. The rates are higher and the limit will be lower than before, but a new card is a good place to begin building our rating back up. Stick with one or two cards, manage your purchases carefully, and don’t overspend. You want to prove that you are a responsible creditor. If you have any questions, speak to an experienced Iowa bankruptcy lawyer.

Remember to keep your credit card balance low. This is because your credit score keeps track of the amount of debt you are carrying, your payments and the amount of credit available to you. It is a smart move to try to keep your debt load at about ten percent of your total available credit. Let’s say your available credit is $15,000. You would want to keep your purchases around $1,500, and pay it off promptly each month. Paying in full on time is an effective tactic to increase your credit score. Make a solid effort to pay all of your bills in full. Keep track of when your payments are due and pay them on time or even ahead of time. This looks good in your credit report and over time, your score will improve. This tactic will also take some time to show up in your credit score, so keep consistently paying your bills.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Receiving an inheritance before, during or after a bankruptcy may end up giving the debtor some difficulties. How that inheritance is treated when the debtor files a Chapter 7 bankruptcy will depend on when the bankruptcy was filed and when the person who bequeathed the money died. There have been instances where receiving an inheritance resulted in a discharged debtor having to repay the debts because their inheritance would allow them to pay everything off.

If you receive an inheritance before your bankruptcy case is discharged, by law you must declare it as a part of your bankruptcy estate. This means having your Iowa bankruptcy lawyer file revised paperwork for your bankruptcy. Ultimately, the amount of money you receive is taken into account when it comes time to figure out Chapter 7 eligibility and whether or not the funds may be used to pay creditors.

It does not matter whether or not you have received the money or property. The information must still be included in your filing. A pending inheritance still counts in calculations for bankruptcy eligibility. If the person bequeathing the money or property is still alive, you do not need to list the possible inheritance.

If you receive an inheritance within a window of 180 days after filing for bankruptcy protection, that bequest becomes a part of your bankruptcy. This is usually referred to as the 180-day rule, and it acts as a way to stop people from filing Chapter 7 to avoid paying creditors with their bequest. If the inheritance is not disclosed and the bankruptcy trustee becomes aware of it, you may be forced to hand it over and have your bankruptcy discharge revoked.

If your inheritance does not arrive during the bankruptcy process and you receive it more than 180 days after your petition was filed, there is no obligation to report it to the trustee or change your Chapter 7 filed documents. Additionally, some courts have determined that an inheritance that takes the form of certain trusts is not covered by the 180-day rule.

When in doubt about how an inheritance may affect filing for bankruptcy, contact an experienced Iowa bankruptcy lawyer and find out what rules and regulations apply to your situation.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

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, and getting the petition for divorce was the last straw.

You think that 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 was enacted in 2004, there was a way 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.

The only option for you to consider is whether your financial situation makes you eligible to file for bankruptcy protection. Whether or not you are facing a divorce is not relevant to the issue of filing bankruptcy. However, it is imperative that you discuss your situation with a qualified Iowa bankruptcy lawyer to make sure you know all of your options should you decide to move forward and file for Chapter 7 or Chapter 13 bankruptcy.

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 on your own without legal counsel, you may waste time and money and risk having 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 http://www.iowachapter7.com or call 1.877.888.1766.

When the bankruptcy process is concluded, the debtor is released from a variety of debts. In discharging them, it means they do not have any liability for that debt anymore. On discharge, which happens when the court determines the debtor has fulfilled all of their obligations in filing for bankruptcy protection, the debtor gets a copy of his discharge records in the mail. These records must be kept. This is information that your Iowa bankruptcy lawyer will cover during the early stages of your bankruptcy filing.

Keeping original bankruptcy discharge papers is routine for some people and for others, filing is not something they do on a regular basis. If the bankruptcy discharge papers cannot be found, the debtor may get another copy in one of two ways: getting in touch with the court where the bankruptcy petition was first filed or going online and to use the Federal Courts PACER system. They may also wish to touch base with their Iowa bankruptcy lawyer, in case there is an extra copy on their file.

If you want to do this in person, get in touch with the clerk of the bankruptcy court where you filed and where your bankruptcy was discharged. If you are not certain which court you need to contact, the information for all bankruptcy courts in the U.S. is available online. You need to pay a fee for the clerk to search and certify your papers and have them sent to you in the mail, or pick them up in person.

The PACER system allows individuals to create a free user account, prior to searching for a bankruptcy discharge. If the information is in the database, you then indicate how you are paying the per page fee for the information to download to your computer. If you are not 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 when you filed your bankruptcy papers.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

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

The first thing you need to check into 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, for main reason that you want someone that is 100 percent your advocate, not 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 assists in helping people work out their financial issues. If at any time you are uncertain as to 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, 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 of it, but their real reason for helping you is 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 http://www.iowachapter7.com or call 1.877.888.1766.

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

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

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

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

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

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

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

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

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

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

Filing for bankruptcy is a tough decision for anyone to make, even it if appears to be the only thing left to do. Admitting that we are in over our heads financially is one of the most embarrassing and depressing issues anyone could face. They feel that somehow they failed in life. That is not true. Bankruptcy happens to anyone, and you only have to read the stories on the Internet to know that even celebrities declare bankruptcy.

Perhaps a Chapter 7 filing would suit your situation, but you are not sure. Make an appointment to meet with a Waterloo bankruptcy attorney and go over your financial situation. Typically, the first meeting is free and you will get good, solid advice. From there, you can hire the lawyer and move forward through the maze of the bankruptcy system.

Here is a quick overview of what will happen once you hire a bankruptcy lawyer:
– For a Chapter 7, the lawyer files your petition and statement of financial affairs with the courts
– The papers outline your total debt, your income, expenses and what property you own
– Once the papers are filed, you are granted an automatic stay that stops collections activity
– A trustee is assigned to the case and will identify and sell your assets, paying the proceeds to creditors
– Priority creditors are paid first
– When the process is complete, in about four to six months, the debt is discharged
– Discharged debts may include unsecured personal loans, credit card debt and medical bills

Note: Chapter 7 bankruptcy may not stop all collections if a bankruptcy judge determines there is cause
Declaring bankruptcy is fairly straightforward, but is complex, which is why you need the services of an experienced bankruptcy attorney. This has been the case since the inception of the Bankruptcy Abuse Prevention and Consumer Act in 2005. It made filing harder, and now requires that you pass an income test. In a nutshell, the income test figures out if your salary is below other residents that live in Iowa.

If your income is below the median line, it is likely you may file for Chapter 7 bankruptcy. If your income is above that same line, there is more means testing. Generally speaking, the additional means testing involves subtracting certain expenses from your income such as mortgage payments, car loans, tuition, and taxes. Once that is done, if you have $100 a month to pay for 60 months towards your debt, you may not qualify for Chapter 7. You may still pay up to 25 percent in debt repayments though.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

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

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

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

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.

While most of us are not tycoons, 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 http://www.iowachapter7.com or call 1.877.888.1766.

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

Do not think that bankruptcy laws only exist to protect the debtor. They do, but they were also designed to protect the creditor. It is a two-way street and you need to remember that should you find yourself needing to declare bankruptcy. There is no doubt that it is a tough personal decision and the urge to lie to make things seem worse than they are might motivate some filers. Big mistake. Things like that always get discovered later.

Many people do not realize that bankruptcy is a legal proceeding, and as such it is under the wing of the U.S. Constitution and its bankruptcy laws. Those laws were written to protect creditors and debtors, and to allow an honest person or business a way to work out of a bad financial situation and to start all over again with no debts encumbering them. Why be honest when telling a little white lie might make you look better when you file? It’s called fraud, and it is illegal and subject to criminal prosecution. This is just what you do not need on top of your bankruptcy.

Some debtors lie because they are ashamed of the financial mess they find themselves in and feel people will think they are lazy or immoral. These days, declaring bankruptcy is something many people have been forced to do because of the poor economy. There is no shame in that. People can find themselves facing bankruptcy because of an unexpected divorce, a foreclosure, medical bills that are overwhelming, or health issues. In other words, life happens and part of life these days is the reality of bankruptcy as it is a tool to help you get out of a bad financial mess. It is just a fact of life and happily, there really is life after bankruptcy.

Keep in mind that you have two options when you have to or are forced to declare bankruptcy – Chapter 7 and Chapter 13. In its simplest form, Chapter 7 is the liquidation of your assets and is usually the fastest way to go bankrupt. In fact, Chapter 7 is typically called the no-asset route to bankruptcy largely because many Chapter 7 filers do not have any non-exempt property for a trustee to sell.

For Chapter 13, the wage earner’s plan, the debtor gets to create their own repayment plan based on their regular income. It usually is repaid over three to five years but no longer. There are some rules about state median incomes, and these need to be checked with a competent Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Creditors have to have some guaranteed protection to ensure if someone goes bankrupt on them, that they have recourse to collect some or all of their outstanding money. Things got easier for creditors after 2005, when the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed how courts handle repossession of secured assets.

Just recently, the Kansas Supreme Court upheld that law in Hall vs. Ford Credit Motor Credit Company Inc. No. 103370. In a nutshell, their finding indicated that a debtor “must” reaffirm their vehicle if they want to keep it, even if they were keeping current on all of their car payments.

Things didn’t used to be that way. At one time, when a debtor filed a Chapter 7 bankruptcy and owned a vehicle that was used to secure a loan, the bankruptcy code offered that debtor three options: give up the vehicle; redeem it by paying the loan; or, reaffirm the debt and stay liable to the creditor after the bankruptcy discharge.

And then, there was a fourth option – thanks to case precedent – that said that a debtor who was current on a secured debt at the time of filing a bankruptcy could keep the property without redeeming or reaffirming the debt. Now, the BAPCPA makes things crystal clear. There are consequences for not redeeming or reaffirming when the debtor is current on payments. Ending the automatic stay or removing the collateral from property now comes into play, and the creditor’s remedies are provided by state law.

Now, more about the story of Hall vs. Ford Credit Motor Credit Company Inc. No. 103370. Mr. Hall was from Kansas and had financed a Ford with a loan in 2006. He always kept his loan current, but filed for Chapter 7 in 2007, approximately nine months after buying the car. Hall’s bankruptcy tore away any liability he had for his car and he would not reaffirm.

After the automatic stay was lifted and he was discharged, Ford Credit initiated the repo process to reclaim the vehicle even though Hall was current on his loan. He chose to sue Ford Credit, so he could keep the car on the grounds that he was currently up-to-date on payments and “not” in default. Ford wasn’t happy with that turn of events and challenged his claim, indicating they were under the impression he wasn’t going to be paying for his vehicle or live up to any other clause in the original contract. Ford won in the lower courts and the plaintiff carried on to the Supreme Court of Kansas.
In essence, the court indicated that they affirmed the lower court’s decision, but issued a warning that they disagreed that the debtor’s Chapter 7 established that the prospect of getting money, performance or realization of the vehicle (collateral) was significantly impaired. They further stated that circumstances which existed when debtors filed for bankruptcy may indicate they “would” continue to perform under the installment contract. In other words, don’t judge a debtor by his bankruptcy.

In plain English, this decision indicated that Ford Credit had proved its initial case that it had evidence of a compelling nature that they had received significant impairment of the prospects of payment. Hall lost his battle, and Ford’s interpretation of Hall going bankrupt prevailed, meaning he’d likely not pay Ford what he owed them was acceptable, but not in “every” case.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Even if you make money hand over fist, or made money with ease at one time, this isn’t to say that sometimes things happen and finances just get out of control. It happens; to everyone. Consider the story of a man who boasted that he was the world’s top, numero uno real estate agent. At one time, he supposedly had over $2.5 billion in sales over a six-year period. He declared bankruptcy. He was knee deep in the boom times of real estate and had everything a person could possibly want, and then the balloon popped.

The real estate mogul found himself over $50 million in debt and tried selling some of his assets, but only garnered roughly $2.4 million. It wasn’t much, but it was a start, and he thought maybe he could still make ends meet, until his wife filed for divorce. That was the end of his rope. The scenario happens to millions of Americans every day; the millions trying to get from point A to point B and survive.

Bankruptcy can and does happen to anyone. No one is immune when the conditions are right for financial collapse. Circumstances in a person’s life tend to dictate how things will go financially, and if someone is struggling with paying their bills and they lose their job, get ill and need extensive, expensive medical care or their spouse files for divorce, things can tank just about over night. It’s no one’s fault that these things happened; they just did, because that is life.

Another nugget of truth to take from this story is that the real estate market is still shaky, and there are hundreds of thousands of foreclosures making their way through the system, even as you read this article. What does the future look like? Who knows. What will happen, will happen. Those stuck in the middle of the morass can only ride it out and see what happens when the dust settles.

In 2010, foreclosures hit the 1.05 million mark. Twenty six percent of all the homes sold last year were foreclosures, and things are looking about the same for 2011. What’s scary is that nearly 2.9 million homeowners got foreclosure notices in 2010. There may be more in hot water this year, judging from the present state of the economy.

The fact is that the economy is bad and in tough times, things get rough. Riding it out is even tougher and many people may need to contemplate bankruptcy to see light at the end of the tunnel. For help figuring out what your options are, call an experience Iowa bankruptcy lawyer. Your finances could fall flat anytime, no matter who you are, what kind of education you have, whether or not you are making lots of money, or very little. Bankruptcy is the grand leveler of all who dare to stand in its way.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you are in a bit of a pickle and are carrying an overwhelming debt load, high medical bills, serious credit card debt and are getting dunning phone calls from bill collectors, it is time to call a bankruptcy lawyer for help. Federal bankruptcy laws are actually geared to help you out when you’re facing bankruptcy.

The most common bankruptcies filed are Chapter 13 and Chapter 7. Filing a Chapter 7 stops creditor phone calls and discharges some types of unsecured debt. Filing a Chapter 13 stops foreclosure, harassing collection actions and allows you to create a debt repayment place to pay off certain debts. This is not to say that it is easy to declare bankruptcy, because it is not. It is a distressing process and many people are embarrassed to admit they are going to file.

No worries. These days, no one looks at you sideways for declaring bankruptcy. It is what it is. The question you may be struggling with is what type of bankruptcy is the best for your situation? The law has made it harder for some debtors to get rid of their debts under Chapter 7, but some may still be able to do this if they have an income that is under the state’s median income level or they pass a means test. Just ask your Iowa bankruptcy lawyer what the rules are in the state.

If you want a quick and simple and relatively inexpensive way to declare bankruptcy, typically, Chapter 7 will do the trick. This process is there for married couples, partnerships, corporations and individuals. Truth be told, it is best for individuals with limited income and wages and don’t have many assets to protect from liquidation.

For Chapter 7, there is a court-appointed trustee assigned to your file to identify non-exempt assets, and liquidate them to pay your creditors. There are some instances in which you get to keep secured property, but only if you are able to negotiate new debt repayment terms.

Let us say you do not meet the criteria for filing a Chapter 7 bankruptcy. If that is the case, you might find Chapter 13 is a viable alternative. Under a Chapter 13 filing, you may keep your assets, avoid foreclosure on your house, stop creditor calls and repossessions and repay a portion of your debts with a restructured debt repayment plan within 3 to 5 years. A trustee is assigned under a Chapter 13 filing as well, who supervises the debt collection process and distribution of monthly payments.

It is important to know that not all of your debts are done away with under either Chapter 7 or Chapter 13 bankruptcy filings. Your Iowa bankruptcy lawyer will outline what you need to know. Debts you cannot discharge include maintenance for your spouse, child support, any debts owed to certain tax advantage retirement plans, debts acquired as a result of fraud or embezzlement, debts for malicious injury to another person or property, debts that are not laid out in a debt repayment plan, some types of taxes and personal debts for damages caused by a debtor who was DUI.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

The bankruptcy process offers debtors in over their heads relief from a wide variety of debts – as long as they are unsecured debts. However, there are also several types of debts that will not be discharged as easily, and one of those debts is a student loan. No doubt there will be many loud groans over that bit of information, but the fact is the general rule of thumb is that student loans do not get discharged in a bankruptcy.

A lot of people think this is unfair, but if you consider the reasons for it, it actually makes sense. Look at it this way. If student loan debt could be discharged, how many institutions would be willing to lend students money to get an education? The answer to that would be not many, and with good reason. Why shell out bucks you will not get back if they declare bankruptcy.

It’s pretty easy for students to get money to get educated. Consider those people our future generation. If they were to get what money they needed to make something of their lives and then be able to discharge that later by declaring bankruptcy when they graduated, those who loaned the money would be paying the penalty; a penalty that would be passed on to the next students wanting to borrow money. In other words, it would be brutally unfair to lenders, and thus the federal government said student loans cannot be discharged in a bankruptcy proceeding.

Having said that, as you probably know, most laws have limitations and exceptions, and yes, there is an exception when it comes to student loans, but it is a very limited one. There is a provision called the “undue hardship exception.” While there are probably many students thinking they would qualify for that, the truth is, it is very hard to prove. The student/debtor must show extreme reasons why they cannot repay the loan.

Extreme reasons may include the student not being able to live at even a minimal standard of living because of the student loan, that they are indeed making a good faith effort to pay on it and that the extreme circumstances will be in effect for the total period of the loan repayment. This process is conducted by way of an adversary hearing within a bankruptcy. A judge determines is an extreme hardship does exist, before a deciding if the student loan may be discharged.

Honestly, this is such a hard thing to prove that it’s likely best that you just assume you can’t discharge your student loan during a bankruptcy, because, in all reality, you likely can’t. If you don’t know what applies in your case, and you have a student loan, consult with a skilled Iowa bankruptcy lawyer. If you want to know how to proceed, what qualifies, what doesn’t and what Chapter to declare, your Iowa bankruptcy lawyer will be able to offer you the advice you need.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

This first thing to know about bankruptcy is that it can, and does, happen to others. You are not alone out there without any hope in sight and totally ruined credit. There are people who will help you through the process of bankruptcy, and you can definitely rebuild your credit by making all your payments on time. In other words, there is light at the end of the bankruptcy tunnel. If you work in partnership with your Iowa bankruptcy lawyer, you will have your rights protected and be well informed about the whole process.

One of the people designated to help you through your declared bankruptcy is the bankruptcy trustee. His or her job is to administer your affairs and make sure you get through your bankruptcy. In reality, the bankruptcy trustee will act on your behalf to make sure the process is a smooth one and that your rights, and the rights of the creditor, are protected.

While bankruptcy trustees are there to help you, they are neither your friend nor your enemy – they are the hub of the process to keep everything on an even and fair keel. For example, a Chapter 13 bankruptcy trustee will hold and conduct the 341 meeting of creditors, review your petition and Chapter 13 plan and then distribute your monthly payments, according to that plan.

In the case of a Chapter 7 bankruptcy, trustees liquidate the debtor’s non-exempt property and hand out the proceeds in accordance with the rules and regulations applicable for the federal bankruptcy code. They will also examine the bankruptcy petition and check for any inaccurate information, misrepresentation or fraud on the part of the debtor. In other words, the trustee, in both Chapter 7 and Chapter 13 situations, is the person who sees to it that you get an efficient, effective and fair resolution to your bankruptcy process.

If you have any questions about whether or not filing bankruptcy is the right route to take in your situation, make your first phone call to a qualified Iowa bankruptcy lawyer. They have the years of experience in this area that you will need to make an informed decision about your circumstances. They are not there to judge you. They are there to help you get through one of the toughest times in your life.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Let’s say you’re a city and you are staring at more money going out to run the city than is coming in. If that goes on for long enough, the word bankruptcy begins to appear on many people’s lips. The prospect of a city going bankrupt is mind boggling, but it can happen. Think Orange County, Calif., which declared bankruptcy in 1994. That was one of the largest municipal bankruptcies on record and virtually a precedent no one seemed to be anxious to follow.

Flash forward to 2011 and the current state of the economy. These days, just about everyone may flirt with and/or actually decide to file for bankruptcy. If there are no other options open, that is a move that makes the most sense to many. Does this work for cities and municipalities? Yes, it does. There is Chapter 9 for them, if their state allows that and 26 states do not allow cities and municipalities to go bankrupt.

Despite the fact that many states frown on cities and municipalities going under, this does not stop them from thinking about it and discussing it as an alternative to a desperate financial situation. In fact, just recently, it hit the news that Hamtramck, Mich. wanted to declare bankruptcy. Then the news surfaced that Central Falls, R.I. may be in the same boat. Harrisberg, Penn. is another “me too” candidate for bankruptcy. Things are indeed looking fairly grim.

Chapter 9, for those that can take it, is a desperate last move and one that may open the door for others in the same mess to move to do the same thing; a complete financial fiasco in the making. Those who do take that route have a long way to come back as well. Consider what those cities and towns would do to cope. What about town services? What about municipal bonds? What about driving up the costs of borrowing? What about the human fallout?

There is the very real scenario of city pensioners being cut off; something that has already happened in the city of Pritchard, Ala. when they declared bankruptcy not once, but twice in a 10-year period. The fallout is just beginning all over again for them. So, while Chapter 9 is an option for some cities and municipalities, the ramifications are horrendous. This is a move that should only be taken if there is absolutely no other way out from under debts.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

While filing for bankruptcy is not the easiest thing in the world for a variety of reasons, it also is not the end of the world, despite how it may feel. Yes, there are a lot of factors to take into consideration, not the least of which is a change in lifestyle, meaning taking a good hard look at how you spend money. A lot of people think that when they file for bankruptcy, they lose everything they have. Good news – that is not true.

Keep in mind that every bankruptcy case needs to be assessed on its own, which means every case is different and yet similar. This is only to say that in most cases, the debtor will not be coughing up all of their property and possessions. This is because the law does give a wide allowance in terms of property exemptions. This is good news because during and after the closing of your bankruptcy case, your exempted property is protected by law.

Here is something that most people do not know, or do not understand. Exempted property means you are allowed to keep your property and the equity in it. That bears repeating: you get to keep the property and the equity in it, meaning the difference between the value of your property exemption and what you still owe. This is definitely something you need to discuss with your Iowa bankruptcy lawyer to get a good handle on how it works to your advantage.

As with just about everything, there are other points you need to be aware of as you move forward through the bankruptcy process. For example, each state has the right to choose which exemption will apply to your case, meaning state or federal exemption. In some cases, and this too is something your Iowa bankruptcy lawyer will talk to you about, some states let you make a choice between which route to take.

Typically speaking, federal bankruptcy exemptions are better for you. However, that does not mean state exemptions should be ruled out. This is yet another reason why you need a skilled Iowa bankruptcy lawyer, to help you get through the maze of filing bankruptcy. To get a good grasp as to which type of property exemption would apply to you, you need to talk to a qualified bankruptcy lawyer. That way, you are on the right track.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

For those who do not understand what foreclosure means, it refers to a local government taking away your ownership to a piece of property. For example, let’s say you take out a loan to buy a house, as most Americans do, and during the course of signing the papers, you have given the lending institution a secured interest in your home. If you do not make your mortgage payments, or do not make them on time, the lender can, because they have a secured interest in your home, foreclose on it or auction it off.

Proceeds from the auction go back to the lending institution, but that is not the end of things. If the lender is not able to recover the remaining money you owe, you may have a deficiency judgment registered against you. Of course, if you find yourself in this kind of a situation, you definitely have way too much debt and may wish to consider filing for bankruptcy protection.

It does not matter how you got to where you are in terms of being about to lose your house. There are millions of people in similar circumstances, brought down and getting behind by a marriage gone bad, unemployment, medical bills or bad money management skills. In other words, life happens. It is far more common that you may think to find out that you have somehow overspent, even though you thought you had all your bases covered. You didn’t and you find foreclosure looming large any day now. Time to make some major decisions.

Foreclosure may sound like an easy and quickie solution to having too much debt. While it will solve “that” problem, the problem you will have for your credit history is pretty large and difficult to overcome. Foreclosure and a deficiency judgment can make you look like a very poor credit risk, even though you may have gotten in over your head unintentionally.

Good news. Foreclosure is not always inevitable, and you do have other options you may consider. First things first though, do you understand the ramifications of your situation? Meaning, is this a short term problem you may be able to recover from? Are the mortgage payments something you just can’t handle – period? If your financial difficulties are short term, you can fend off foreclosure by perhaps borrowing from a good friend or relative; taking the bull by the horns and talking to your lender in a forthright manner; refinancing your loan and yes, even selling your house.

The bottom line is, if you do not know what to do, do not know if you are at rock bottom and do not know what options are out there for you, then contact an experienced Ohio bankruptcy lawyer. If you want help, trusted advice and guidance through the bankruptcy process, your Ohio bankruptcy lawyer is able to take care of you.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Those facing bankruptcy have many concerns about the recent changes to the U.S. bankruptcy laws. They feel they are way too friendly for creditors, leaving debtors facing a struggle to handle their unmanageable debts. However, there are provisions to protect debtors and one of those is the automatic stay, found in section 362(a) of the Bankruptcy Code (Code).

This particular section, paraphrased, says that if you file for bankruptcy, the petition automatically halts any collection action by creditors. In laymen’s terms, the stay or stop is similar to an automatic court order that instructs the debt collector to halt all collection activities against the petitioner. As a further point of interest, the auto stay also halts many civil lawsuits against the filer.

The code includes an automatic halt of any collection proceedings, simply because it is assumed that once the petition is filed, the debtor is immediately entitled to Code protections. If you have filed a Chapter 7 bankruptcy, the stay also keeps as much property as possible within the estate to be disposed of later to pay creditors.

If collections agents are still contacting you after you have filed your bankruptcy petition, they may be found to be in contempt of court. The courts will not hesitate to halt any collection efforts and impose penalties and fines. A collector who continues to chase a debtor after a petition is filed may also be ordered by the courts to pay the debtor’s lawyer’s fees relating to collections attempts.

There are also provisions under the newer code to level punitive damages against a collection agent that acts in contravention of a stay. Of course, there are exceptions to this rule of thumb and to find out what those are you would need to speak to a knowledgeable Iowa bankruptcy lawyer.

What does the auto stay do for a bankruptcy petitioner? Among other things, it means the collector must stop any informal collections attempts. They must also cease with any pending lawsuits, stop any efforts to collect on final judgments against a debtor and cease attempts to get a secured interest in a debtor’s property.

You may also be interested to know that once you file for bankruptcy, the code halts any and all attempts to repossess or foreclose on your house. This is applicable whether or not you choose to file a Chapter 13, Chapter 7 bankruptcy or indeed, any other chapter you choose to file bankruptcy under. This is something you should talk to your Iowa bankruptcy lawyer about.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

In today’s fast paced and debt filled world, people in over their heads financially often have an enormous personal struggle with the thought of filing bankruptcy. They feel a deep-seated twinge of guilt for failing to manage their financial affairs. But really, should they feel guilty when there is no other option open to them? It’s a tough question and a tough position to be in.

The drowning debtor with guilt is between a rock and a hard place, because in their minds, if they declare bankruptcy, they are deadbeats. They do not want to pack it in and admit defeat and have to face the stigma of having gone bankrupt; a status that will haunt them for many years. So they struggle to keep their heads above water and fail; miserably. And yet, they still want to pay what they owe.

Unfortunately, when things get that bad, there are not many other options open. If their debts are eating them alive every month, it is time to do something; to salvage what is left of their financial stability, without the guilt if possible. This is really a difficult financial decision and has nothing to do with morals.

Sadly, many people feel that if they max out their retirement account to pay off credit cards or bail out their home, that they have the world by the tail. It does not work that way. Retirement funds are protected from creditors and if you spend the whole enchilada, you have nothing for retirement. The true reality of using your retirement funding for credit card payments or trying to save your house, is that for every approximately $10,000 you bleed out of your account, you may well lose close to $100,000 in future income.

If you find yourself on the uncertain road heading towards possibly filing for bankruptcy, do not access your retirement funding without first talking to a qualified and skilled Iowa bankruptcy lawyer. They will tell you right away what your legal rights are and what is protected. You need to make informed decisions about your debt load, not ones that have the potential to completely ruin you financially, putting your retirement in serious jeopardy.

If you happen to have more than one creditor, and many people do, do not dash for cash to pay off just that one creditor, because if you do, what are you going to do with the other creditors? If you have some money to spread about, then spread it amongst all the creditors; don’t pay just one off or the rest may hound you into bankruptcy.

In the final analysis, declaring bankruptcy is difficult and it should never be done without talking to a seasoned Iowa bankruptcy lawyer first. There are many things that will help a financially strapped debtor deal with their situation. If you do not ask the questions, you are left with no options and a lot of mental pain and anguish. If you ask the questions, your lawyer will be able to provide you with clear and concise answers to help you choose what will suit you the best.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

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

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

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

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

“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 http://www.iowachapter7.com or call 1.877.888.1766.

Filing for bankruptcy is not easy. There are many things you may face giving up. Many people think they will have to give up their car. In part, this is a myth, because if you have applied for Chapter 7 bankruptcy in Iowa, or are currently considering filing, you may be able to keep your vehicle thanks to the 722 Redemption, also referred to as a car loan redemption.

While this may sound great on the surface, as with anything legal, there are rules and exceptions to understand in this process. The 722 Redemption lets you keep your vehicle instead of running the risk of having it repossessed or taken away to help pay your debt. What if you are in more debt than your car is actually worth? Even in cases like that the 722 Redemption could make things easier for you to handle. Whether or not this applies will be largely dependent on your particular situation.

This particular provision basically says that if a Chapter 7 applicant is overturned on their loan or is in more debt than the vehicle is worth, they may make arrangements for the courts to pressure the lender to give up the lien on the car to enable the bankruptcy applicant to get outright ownership of the vehicle in question. There is a catch – the filer must repay the car’s value, in cash, to the lender.

An example would be a truck valued at $6,000 and the amount owed to the lender is $11,000. This would mean finding $6,000 to pay the lender to get the lien. It goes without saying that the vast majority of bankruptcy clients do not have that kind of money lying around and could not get it to pay their car loan either. One alternative is to find a law firm that works with 722 redemption loans and finance the sum – in the example that would be $6,000.

What are the advantages to getting a new loan? It acts to reduce the filer’s monthly payments and the remainder of the loan, allowing them to keep their car and get a fresh new start. It is an attractive alternative if it things can be arranged to make it happen.

You should also know that the 722 Redemption has to be authorized by the bankruptcy court and managed by your bankruptcy lawyer. However, once that happens, your monthly payments are lowered, as is the remainder of your loan. Legal fees are typically included in the loan. It is a pretty appealing alternative and one that should be discussed with your bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.