A job loss, or an illness, can lead to a financial crisis. Frequently, there’s not enough money coming in to pay monthly bills. Creditors can make your life miserable calling all day, and into the night. Bankruptcy may be a possible solution.
Bankruptcy has a negative connotation, but the process gives you a fresh start. Primarily, individuals need to decide what type of bankruptcy works for them. Chapter 7 allows someone to start over completely, and most assets are liquidated to pay creditors. It’s wise to consult a Bankruptcy Attorney in Des Moines, because some property is exempt. Check with the law offices of Kevin Ahrenholz. This bankruptcy attorney has over twenty years experience.
In Chapter 7, the debtor may be able to keep their home and some other property. The The Law Offices of Kevin Ahrenholz Des Moines will explain Chapter 7 eligibility to you. People are ineligible if they already had a bankruptcy discharge within six to eight years. Chapter 7 takes about four to six months, and costs about $300 in filing fees. Child support, alimony and taxes cannot be liquidated.
Everyone who files bankruptcy has to do credit counseling, first. This process can take a while. You’ll have to complete forms listing all your debts, and complete a household budget. Some credit counseling agencies charge for the service. The Bankruptcy Attorney in Des Moines will explain, the counseling must be completed 180 days before filing. Exceptions are available, if you have to file to stop a foreclosure or other emergency.
Chapter 13 bankruptcy allows the debtor to repay their debts in one monthly payment. You must have a regular income to file Chapter 13. A Bankruptcy Attorney in Des Moines will help you complete all the forms necessary to file. If your income is irregular or too low, the Court may not allow a debtor to file Chapter 13. A large chunk of your income will go towards repaying debt. The current filing fee is $274.
Filing bankruptcy automatically restores some stability in your life. The court issues an automatic stay, and bill collectors have to stop all collection activities. The bankruptcy will be on your credit report, but it’s not a death sentence. Many people are able to start rebuilding their credit, right away.
