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How much does Iowa Bankruptcy cost?
Will my attorney take payments on the attorney fee?
Do you handle clients from outside Des Moines?
Does it cost more to file Iowa Bankruptcy jointly?
If I am married, does my spouse have to file too?
Is my spouse’s income considered if I file alone?
How can I pay my bankruptcy attorney if I am broke?
Will legal aid help me for free?
What is the minimum amount of debt to qualify for Iowa bankruptcy?
Can I file my Iowa Bankruptcy myself without an attorney?
What is the Iowa Bankruptcy Process?
What happens at the hearing?
Where are hearings held?
What are the most common problems that come up with bankruptcy cases?
What about my home and cars?
Can I discharge my mortgage and keep my home?
What are the alternatives to filing Iowa Bankruptcy?
Should I file a Chapter 7 or a Chapter 13?
How long does the process take?
But I feel guilty about filing bankruptcy!
How should I go about selecting a bankruptcy attorney?
Will my employer find out?
Will my bankruptcy be in the newspaper?
How did bankruptcy law originate?
What are exemptions?
What are the most common mistakes made in Iowa bankruptcy??
Is credit counseling a good alternative?
Will anyone come to my home?
Will my doctor treat me after bankruptcy?
Might I be “turned down” for bankruptcy?
What about garnishments and judgments?
What about co-signers?
Can I keep one credit card for future use?
How do I rebuild my credit after bankruptcy?
How much does Iowa Bankruptcy cost?
Fees vary from one attorney to another in Iowa. Urban firms that do a volume of cases tend to charge under $1,000 while some firms in smaller towns that may do few cases have to charge more since they do not have the benefit of economies of scale. For some attorneys the fees are "fixed", meaning you pay one fee and you are done regardless of how much time your attorney has to spend on your case. Other attorneys charge on an hourly basis.
Will my attorney take payments on the attorney fee?
Some Iowa bankruptcy attorneys do accept payments. The problem with payments is that bankruptcy clients are not terribly reliable when it comes to making payments on time. Hence, the Iowa bankruptcy attorney who accepts payments will spend a lot of time calling, writing and otherwise harassing his own clients to come in and pay; sort of like the creditors do. Also, any fees left unpaid at time of filing are discharged just like any other debt. So many Iowa bankruptcy attorneys do not accept payments.
Do you handle clients from outside Des Moines?
Jeff handles clients throughout Southern Iowa including Adair, Adams, Appanoose, Audubon, Boone, Cass, Clarke, Clinton, Dallas, Davis, Decatur, Des Moines, Fremont, Greene, Guthrie, Harrison, Henry, Jasper, Jefferson, Johnson, Keokuk, Lee, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattanie, Poweshiek, Ringgold, Scott, Shelby, Story, Taylor, Union, Van Buren, Wapello, Warren, Washington, Wayne counties. If you are in Northern Iowa we suggest you contact Iowa Bankruptcy Attorney Kevin Ahrenholz with offices in Cedar Rapids, Waterloo, Vinton, Independence.
Does it cost more to file Iowa Bankruptcy jointly?
Since only one petition is required even for a joint filing, most attorneys do not charge more for a joint case than for a single case. Most attorneys will want to meet with both spouses, especially since there have been cases where a spouse has filed bankruptcy for both by forging signatures and telling the attorney the other spouse was too busy to come to the office.
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If I am married, does my spouse have to file too?
No. Many married debtors file alone, although they will normally file bankruptcy jointly if both are on the debt. Your bankruptcy should not appear on the credit report of a non-filing spouse.
Is my spouse’s income considered if I file alone?
Yes, you will need to tell your attorney what your non-filing spouse’s income is to make sure your joint income and expense qualify you for Iowa bankruptcy.
How can I pay my bankruptcy attorney if I am broke?
Obviously, this is the #1 problem for the typical bankruptcy client. In my experience, many of my clients will borrow the attorney fee from family or friends. As long as you are going to pay it back it is ok to borrow it. Other clients will stop paying credit card, medical and other dischargeable bills until they have accumulated the attorney fee.
Will legal aid help me for free?
Some legal aid offices do handle bankruptcy cases. If you have little or no income at all you may want to contact them. Naturally, they are inundated with requests for representation on bankruptcy cases and can only accept a small percentage of the people who apply.
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What is the minimum amount of debt to qualify for Iowa bankruptcy?
There is none. A debtor with little or no income may file bankruptcy with an amount of debt that would be very manageable for someone with substantial income. It just depends on you.
Can I file my Iowa Bankruptcy myself without an attorney?
You can file by yourself without an attorney; this is called "pro se". The challenge is knowing how to properly schedule and exempt all your assets. Most debtors get to keep all their property if they properly disclose it and their attorney chooses the correct exemptions and exemption amounts. So a pro se debtor can very easily lose well over $1,000 in property during their bankruptcy by filing a faulty petition. Your bankruptcy attorney also knows the practical aspects of resolving any problems that arise during your case. If there is a dispute with a creditor or trustee your attorney will know what the expectations are and how to get you the best settlement. Your case can also be dismissed if you don’t comply with technical requirements. Your experienced bankruptcy attorney will be familiar with these requirements . Finally, your creditors may continue to contact you if you are pro se since there is not attorney between you and them. Most debtors do not want to hear from their creditors any more once they file bankruptcy.
What is the Iowa Bankruptcy Process?
Many attorneys start the process with a packet that you would fill out listing all your assets, debt, income, expenses and other financial information. Some attorneys have thrown away the packets and just do the petition one on one with you in the office, a process that tends to speed things up and improve accuracy. Once the petition is complete and all fees paid, the case is filed and a hearing time set. The hearing is usually about 20-40 days after filing. If any issues arise during this period such as creditor objections or trustee requests, your attorney will help your resolve those. About 8-9 weeks after the hearing you will normally receive your discharge and your case is finished.
What happens at the hearing?
At your hearing the trustee will examine you concerning the contents of your petition and the availability of any assets to the estate. Creditors can also show up and ask you questions although in most cases none will. There is a problem with debtors filing bankruptcy under someone else’s social security number. So the trustees are required to verify your identity and social security number. If you do not bring your social security card or other proof of your social security number along with photo ID to the hearing your case may dismissed.
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Where are hearings held?
Des Moines hearings are held at 210 Walnut, the Federal Building at 2nd and Walnut in Downtown Des Moines, not at the courthouse. There are several other hearing locations in Iowa if you file outside of Des Moines.
What are the most common problems that come up with bankruptcy cases?
*Income that is much higher than your regular monthly expenses;
*Large credit card use shortly before filing Iowa bankruptcy including cash advances and balance transfers;
*Recently gave or repaid $ to family;
*You have a potential recovery coming from a car accident or other claim;
*Recently purchased a home with large down payment;
*Gave away or transferred real estate or other valuable items recently;
*Inheritance pending;
*Expensive non-exempt assets like campers, boats, collections etc. that do not have liens;
*Large cash advances to fund gambling recently;
*Large tax refund pending
If any of these issues applies to you they should be carefully discussed with your attorney before filing bankruptcy.
What about my home and cars?
As long as you can make the payments it is normally fine to keep your home, cars and other secured assets. If you cannot make the payments you will normally lose these whether you file bankruptcy or not. The important thing is to make each of these payments on-time. This will also help you rebuild your credit. Of course if you are going to surrender your home or cars you should talk to your attorney and find out when it is best to stop those payments. If you are going to surrender your home or car you will discharge all of the debt in your bankruptcy, even if the creditor sells the home or car for less than the loan amount.
Can I discharge my mortgage and keep my home?
No, you cannot keep your home unless you pay the mortgage. If you discharge the Mortgage you will need to surrender your home.
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What are the alternatives to filing Iowa Bankruptcy?
Consumer Credit of Des Moines is a local, reputable credit counseling agency. There are many online “credit counseling” services that will take your money and not settle any of your debt. It is difficult or impossible to ever get your money back from these outfits. Even if you sued them you would have to have any judgment enforced against their assets in their home state and that involves hiring a local attorney there and generally much expense and frustration. If you are going to do credit counseling you will probably be much happier with Consumer Credit of Des Moines.
Some debtors will take out second mortgages, but I don’t recommend it. If you are unable to make that extra mortgage payment later you will be in much worse shape. Banks know you are converting dischargeable credit card debt to non-dischargeable (if you want to keep your home) mortgage debt when you use a second mortgage to pay off credit cards. Most people are better off to file bankruptcy in the first place, and more likely to be able to keep their home if they do.
Should I file a Chapter 7 or a Chapter 13?
Most debtors file for a complete discharge under Chapter 7. Chapter 13 is the repayment chapter. Some debtors will file a Chapter 13 in an attempt to save their home, by incorporating past due payments into the 5 year repayment. But beware, most of these plans fail with the debtors converting to a Chapter 7 anyway. Unless you have a good reason or are not eligible, most debtors should file Iowa bankruptcy under Chapter 7.
How long does the process take?
If your attorney uses packets it may take you a week or two to complete the (average 30 pages) of financial information requested. After that it may take your attorney a week or two to draft the petition and meet with you for corrections and signatures. If your attorney does not use packets your entire petition may be done during your first in office appointment. Once your case is filed your hearing is 20 to 40 days later. Your discharge will usually come about 9 weeks after your hearing, so the entire process takes about 3 months if all goes well. The key is to file a quality petition to begin with. Your experienced bankruptcy attorney knows what the trustees and creditors are looking for and can anticipate and address potential problems before they arise.
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But I feel guilty about filing bankruptcy!
This is a common worry among bankruptcy clients. But Courts view bankruptcy as the responsible approach if you can no longer pay your debt. It is better to file bankruptcy, get a fresh start and be responsible for all future debt than to continue to acquire debt you will never be able to repay. Courts want you to get your “financial house in order” so you can save for important future expenses like a home or college. If you did not have this option you could even end up on welfare, nobody wants that.
How should I go about selecting a bankruptcy attorney?
Bankruptcy practice is specialized. Because it is so different and complex bankruptcy has its own Judges and Clerk of Court. It can be a challenge for general practice attorneys to keep up with all the details. So most debtors seek an Iowa Bankruptcy specialist. Fortunately we have several very good bankruptcy attorneys in Iowa. The author, Jeff Mathias for example practices only in personal bankruptcy and only represents debtors.
Will my employer find out?
Unless you owe your employer money you do not need to list their address and they will not receive notice.
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Will my bankruptcy be in the newspaper??
Most debtors would rather not have their bankruptcy case published. The theory behind publication is that potential creditors can be made aware of your bankruptcy and make claims against your Iowa bankruptcy estate. However, in most cases there are no non-exempt assets to claim against. But some Iowa newspapers do still publish and you cannot keep them from doing so, but they may not anyway. It seems to be hit and miss.
How did bankruptcy law originate?
The word bankruptcy is a derivation of “break the bench” which is what craftsman would suffer if they could not pay their creditors in ancient Italy. Once your bench was broken and all your other assets taken you could no longer practice your trade. In medieval England debtors were sent to prison until folks figured out that there was no chance of the debtor paying off there bills if they were kept from working. America took a different approach to bankruptcy largely to encourage innovation. If you could not fall back on bankruptcy, people would be less likely to take the risks needed to innovate and start new businesses.
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What are exemptions?
Exempt property is the property you get to keep in bankruptcy. It includes all the important things like home, car, furniture, appliance, employer sponsored retirement plans etc. Common non-exempt items are boats, trailers, gun collections and the like although if you owe money on them you can often keep those too. Your Iowa bankruptcy attorney can advise you on what to do about any non-exempt items.
What are the most common mistakes made in Iowa bankruptcy?
*Making large cash advances, balance transfers or large charges shortly before filing;
*Taking out a second mortgage instead of filing bankruptcy;
*Not listing assets;
*Not spending your bank balance down to $1000 per person on the day of filing;
*Filing when you have a large tax refund pending;
*Cashing out retirement plans;
*Filing with a claim against others that is not disclosed or not thoroughly discussed with your attorney first;
*Paying or giving money or assets to your family before filing;
*Not showing up at the hearing.
Is credit counseling a good alternative?
Yes, if you have the ability to pay your debt I suggest that you do try credit counseling. Even if you are not eligible, you will probably feel better about your decision to file bankruptcy if you fully consider the credit counseling option. It is worth your time to contact them and find out if you qualify and how much the payments would be. If you start with their program and it does not work, you can always file bankruptcy after all. The only credit counselors we trust are Consumer Credit of Des Moines.
Will anyone come to my home?
I have never had a home visit, although the trustees have suggested that home audits are possible.
Will my doctor treat me after bankruptcy?
Yes, doctors cannot refuse treatment based on your filing Iowa bankruptcy. If you have health insurance your care should be unaffected. If you discharge your doctor’s bill and do not have insurance, you may be asked to pay cash as you go.
Might I be “turned down” for bankruptcy?
Your attorney will discuss your income and expenses, types of debt, recent credit use and other factors that could impair or keep you from a successful bankruptcy discharge. But unless you have high income or another recent bankruptcy discharge it would be unusual to be ineligible for a discharge.
What about garnishments and judgments?
Garnishments stop when you file Iowa bankruptcy. Most judgments are unenforceable against you once you file. Your attorney can tell you if your specific judgments can be discharged. If you have any liens on your home, it is important for you to present copies of those to your attorney so they can be avoided.
What if I don’t know who all my creditors are?
This is a common problem since debtors have often moved and creditors may have stopped billing or assigned your account to collection agencies. Unfortunately, credit reports are the closest thing we have to a comprehensive list and they are simply not reliable. So you should pull your credit report at www.equifax.com, but you will also need to become an amateur detective and make a list of every potential creditor and at least include them in your filing with an estimated amount owed. But beware of creditors who claim you do not owe them money. Some of my clients have called creditors for their balance, been told it was zero and left the creditor off the petition. Six months after discharge the creditor starts collecting again! Ouch. So, list every possible creditor.
What about co-signers?
Banks can and will pursue co-signers if you file bankruptcy. Of course if you continue payments on the co-signed debt all is well and the bank won’t care or pursue the co-signer unless you stop making the payments. There are some co-signer protections in Chapter 13.
Can I keep one credit card for future use?
The banks have independent reporting agencies that give them lists of all bankruptcy cases. They will normally discover your account even if you don’t list them and close it anyway. You are required to list all debt anyway. You are much better to just use a debit card anyway.
How do I rebuild my credit after bankruptcy?
Paying every bill on time is a good start so you don’t have any more hits on your credit. But banks are much more anxious to get you back borrowing than they used to be. You may even receive credit card offers in the mail while you are still in bankruptcy. Many of my clients have purchased homes within 2 years of filing Iowa bankruptcy. My advice though is just to use your checking account debit card for internet purchases and travel and avoid getting back into the credit card trap.
If you have other questions, feel free to email the author at jeff@mathiaslaw.com.
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