But before you get started, it’s important you understand as much about Iowa’s bankruptcy laws as possible so you can work with your attorney to obtain debt relief. Below are some important facts every debtor should know before initiating the process of petitioning a bankruptcy court for protection.
Iowa Bankruptcy Facts
If you have been struggling with increasing debt and have no way to pay back creditors, bankruptcy may just be your ticket to debt relief. Bankruptcy is the declaration of a debtor that they are unable to pay off their outstanding balances and the subsequent process of having that debt eliminated or reduced. Both individuals and businesses can file for bankruptcy in Iowa, but because there are so many different kinds of chapters that can be sought, retaining an experienced Iowa bankruptcy attorney is key to ensuring the fasted and most favorable outcome for a case.
But before you petition Iowa bankruptcy court for protection against creditors, there are a few facts you should know. Below are some of the most important details surrounding the bankruptcy process in Iowa to help you understand what you can expect during proceedings.
Most Commonly Filed Bankruptcy Petitions in Iowa
There are six different chapters of bankruptcy protection a debtor in Iowa can file, but all lead to very different outcomes. Usually, those who are filing for bankruptcy in the state turn to two chapters in particular that are popular because of the resolutions they provide: Chapter 7 and Chapter 13.
Chapter 7 is called liquidation bankruptcy because debt is dismissed in exchange for the liquidation of the debtor’s assets. Here’s a closer look at the details surrounding Chapter 7 so you can see if you might be a good candidate.
Iowa Chapter 7 Bankruptcy
- - Most popular chapter filed in Iowa
- - Both consumers and businesses can file
- - Debt can be completely discharged by liquidating assets
- - Debtors can emerge from bankruptcy protection in as little as three months
- - Provides a “clean slate” for debtors
Chapter 13 bankruptcy, also known as reorganization bankruptcy, is the second-most popular in Iowa, and the following are just a few reasons why.
Iowa Chapter 13 Bankruptcy
- - Meant specifically for consumers
- - Assets are not liquidated
- - Payment plan may reduce overall debt
- - Creditors can’t move to foreclose on a bankruptcy petitioner’s property
- - Ideal option for debtors facing foreclosure
Hiring an Experienced Bankruptcy Lawyer in Iowa
If you have been struggling with debt, the time to act is now. Iowa bankruptcy lawyers are waiting to help you obtain debt relief as soon as possible and we are here to connect you with them. Our site features links to some of the best local bankruptcy attorneys in the state who will stop at nothing to get creditors off your back and your debt wiped out. They handle every part of your case, from completing paperwork to analyzing your income, to determine the best course of action to achieve optimal debt relief.
You do not have to deal with piles and piles of debt any longer. Browse our site to get connected with the most experienced and reliable bankruptcy attorneys in your area who will make sure you emerge from proceedings with a clean slate. Call one of our featured attorneys today to schedule a consultation and discuss your ideal bankruptcy plan.