Iowa residents like you who are feeling pinned down by your debts have options for freeing yourself from this burden. Bankruptcy is one way to do that. Janssen Law, PLC, will discuss two popular bankruptcy options today so that you can determine which may be the better fit for your unique situation.
Chapter 13 bankruptcy is often called a "wage earner's plan". It allows you to keep all of your assets, but in exchange, you must still pay off your debts. However, you will instead work out a repayment plan that you can realistically follow. This plan is tailored specifically to your income, assets, and ability to set aside money to pay off the debt. This will take longer than Chapter 7 bankruptcy but is best if you have assets you don't want liquidated. Generally speaking, you will have 3 to 5 years to complete the repayment.
Chapter 7 bankruptcy is called liquidation bankruptcy due to the fact that it absolves you of most of your debts, in exchange for the liquidation of some of your assets. This can include things like other properties, cars, valuable paintings or jewelry and more. Though this is a good option for people who don't have a source of income and don't qualify for Chapter 13, it can be difficult on the person filing due to having to give up these assets.
Are you facing debt that seems insurmountable? If so, filing for bankruptcy may be the answer you seek. Take a look at our webpage, linked here, to learn more about your options. Speaking to an experienced attorney can also give you valuable insight into the moves you may want to make next.