If you are in a financial predicament, are unable to pay your bills, and creditor are harassing you at home and work, it is time to consider filing a Chapter 7 Bankruptcy in Iowa. Bankruptcy laws are designed to help you get the fresh start you need, and once filed properly, creditors must stop harassing you for the payment of outstanding debts. Chapter 7 Bankruptcy differs from Chapter 13 Bankruptcy as the debts are discharged and payment of the debts is not required as with a Chapter 13. It is important to understand the benefits of each prior to filing; your bankruptcy attorney will facilitate making the best decision.
Property Exemptions In Chapter 7 Bankruptcy In Iowa
Some of your property will be exempt under bankruptcy. These can include home furnishings, primary residence, cars, and other assets such as employer sponsored retirement plans. However, some items will not be exempt under bankruptcy law and include recreational vehicles, collectibles including stamps, coins, and firearms, and others. It is important to fully disclose all of your assets to your bankruptcy attorney so they can help you through the procedure and protect as many assets as possible within the guidelines of the law.
Garnishments, Judgments And Harassment From Creditors
Once you file for bankruptcy, garnishments, judgments and creditor harassment will cease. In some cases, previous judgments can be released or discharged depending on your situation. To do the best job for you, your attorney must know about all outstanding debts, liens against your home, judgments and garnishments, and anything else relevant to your overall financial situation. One of the biggest mistakes an individual can make during the process is to not fully disclose their situation to their attorney. Creditors over the last several years have become more diligent, and often abusive, in their collection tactics. They must cease in contacting you once you have filed for bankruptcy.
Bankruptcy Discharge And Rebuilding Your Credit After Chapter 7 Bankruptcy In Iowa
Once your bankruptcy has been discharged, one of the biggest questions of individuals is how to begin to rebuild their credit. First, it is important to realize that some financial institutions will grant credit to individuals fresh out bankruptcy, and others will not. Do not rush head first into acquiring new debts that you cannot repay. Manage your credit wisely and spend only within your means. In as little as two or three years with record of rebuilding credit, you may qualify for a mortgage.
Bankruptcy is not a sign that you are a failure; it is a sign that your debt payments are greater than you can afford. Changes in life circumstances including divorce, job loss, health challenges and injuries can affect your ability to repay your debts. Take the time to understand the benefits and drawbacks of filing for Chapter 7 Bankruptcy in Iowa with expert legal counsel.
Chapter 7 Bankruptcy is the process of having debts discharged because you can no longer pay your bills. Chapter 7 Bankruptcy Law in Iowa does provide for the protection of some assets including your home, car, household furnishings, and others. Schedule a consultation today with a bankruptcy attorney to learn more about the process and your options.