For people who file bankruptcy in Iowa, the future can be a bit scary. While there is some comfort in not having to face large amounts of debt, there are a lot of hurdles to cross. While it may seem overwhelming, it is possible to build back credit and prepare for a financially stable future, but it does take planning, strategy and discipline.
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.
For individuals in Iowa, there are basically two popular forms of bankruptcy. These are both important ways for debtors to release their obligations, but they serve very different purposes.
You likely understand that if you choose to seek bankruptcy protection in Des Moines, that decision will likely take a heavy toll on your credit profile. This may be a consequence that you are willing to accept if bankruptcy appears to be your best option at avoiding having to sink further and further into debt due to creditor actions. Yet once your bankruptcy case has been discharged and you begin the process of re-establishing yourself financially, you will inevitably begin to inquire as to your ability to engage in significant financial transactions again (such as taking out a home loan). The question then becomes how long after bankruptcy must you wait before applying for a mortgage?
Depending on the type of bankruptcy that a company files for, they may be given a few different options for how they can continue to operate throughout the proceedings. For many Iowa companies, filing for bankruptcy is a solution to abolish pressing debts and hopefully reach an agreement with creditors where operations can continue if contingencies are met in a timely manner.
Hundreds of thousands of people each year use the process of bankruptcy to give themselves a fresh start. This is a fresh start out from under the heel of debt collectors, threatening letters and insurmountable debt. Bankruptcy is a lifesaver for many people, but it does come with a downside: your credit score takes a hit.
Even in the face of overwhelming debt most in Des Moines would likely say that they would want to repay their creditors. The common perception of many that file for bankruptcy is that they simply are looking for a way of getting out of paying their bills. Yet the discharge of debts only comes with a Chapter 7 bankruptcy; those filing under Chapter 13 create a payment plan with the court to pay back their creditors over several years. Creditors in these cases are allowed to review proposed payment plans to determine whether they are feasible and offer feedback regarding their own interests.
Filing for bankruptcy protection is something many Iowa residents do when they need to dig themselves out of debt or get a fresh financial start. If you count yourself among those considering doing so, you may be wondering how filing will affect other aspects of your life, and whether you will have to surrender your home at some point during bankruptcy proceedings.
Your student loans would probably not be eligible for discharge, regardless of whether you intend to pursue it through bankruptcy or another means of debt relief. That does not mean it is impossible to handle student debts. There might some avenues available to you if you are truly unable to address your loans, such as proving to an Iowa court that you have a unique situation.
If you, as the owner of a business, are facing the possibility of bankruptcy, you may wonder what will happen to your Iowa company if you file for Chapter 7. A Chapter 7 bankruptcy allows you to liquidate some of your debts, but you may fear losing your business in the process. Actually, filing for Chapter 7 will have different results depending on the type of business you own, as well as whether you file personally or as a business.