If you are an Iowa resident and you, like many others, are finding it difficult to dig your way out from underneath mounting debt, you may be giving some consideration to filing for bankruptcy in an effort to find relief. You may be familiar with the terms “Chapter 7 bankruptcy” and “Chapter 13 bankruptcy,” but you may not completely understand the two methods, or know which form might be available or a better option for you.
Bankruptcy in Iowa could have many consequences, some advantageous for you and some that are not so desirable. However, damage to your reputation should typically be minimal. While bankruptcies are public record, they are rarely front-page news. Additionally, while word does tend to get around about these things, anyone not in your immediate circle would likely have to go to considerable lengths to discover your financial history.
Once a company realizes they are financially stricken and at risk of having to file for bankruptcy, they should immediately modify their organizational processes to compromise for their losses. Quick thinking, proactive action and commitment may allow a struggling business to come out on top after slowly and steadily working its way back into a competitive position in Iowa.
If you are considering declaring bankruptcy, you might be confused by the many new terms and phrases you need to understand. One of those may be secured and unsecured debt and how they relate to bankruptcy. Knowing the differences between these can have a big effect on your choices moving forward. At Janssen Law, we try to make sure all Iowa citizens have all the information they need to successfully navigate the intricacies of a bankruptcy declaration.
If you are like most Iowa residents burdened by unmanageable debt, you have probably taken your struggle as an opportunity to plan your future. Whichever debt management strategy you choose might have a significant impact on your credit going forward. For example, bankruptcy carries a relatively lasting repercussion: Credit reporting companies may report bankruptcy data for ten years after your bankruptcy becomes official.
The possibility of gaining a fresh financial start can make Chapter 7 bankruptcy attractive to Iowa residents looking for a way to climb out from underneath large financial debt. A person filing for Chapter 7 can successfully liquidate a number of debts, including credit card bills, medical bills and personal loans. However, according to the U.S. Courts website, there are some debts that, for various reasons, will not be discharged under Chapter 7.
For people in Iowa preparing to go through bankruptcy, it can be terrifying to imagine which of your financial assets may be used to pay off debts. Some worry that creditors could even go after their retirement plans, such as a 401(k) plan. The truth, however, can make you breathe a little easier. The fact is that your 401(k) is actually well protected.
If you are facing bankruptcy in Iowa, you may be tempted to try a debt consolidation company. These companies make big promises to help eliminate your debt, often for pennies on the dollar. However, are they actually helpful? Is it better to go through one of these companies than to just file for bankruptcy?
Many people in Des Moines are struggling under a crippling amount of medical debt. According to Fox Business, soon mortgages and credit cards will no longer be the primary reasons why people seek out bankruptcy protection because medical debts will be. Those who cannot pay them, often end up ignoring the bills that come in the mail and persistent phone calls they receive. Some of them sacrifice their health by not going to their doctors so they do not incur any more medical debts.
If you want to file Chapter 7 bankruptcy in Iowa, you must pass something called the means test. This was a requirement created when the bankruptcy laws were overhauled. According to NerdWallet, it is designed to help ensure only people who cannot afford to pay off their debts can file Chapter 7. If you do not pass the means test, you will have to file Chapter 13.