Chapter 7 bankruptcy is something provided by Federal Law that allows to get a fresh start with your finances. When a bankruptcy lawyer in Des Moines files for chapter 7 protection on your behalf; the majority of your unsecured debt is eliminated. Chapter 7 bankruptcy is usually suggested to people have very few or no assets at all.
Unsecured debt covers all credit card debt, medical bills, money owed on a repossessed car, any judgments that were the result of a vehicle accident and most personal loans. The process of chapter 7 is complex and is not advised that an individual attempt to file personally; a bankruptcy lawyer in Des Moines will be needed to act as your guide and aid you with the process.
If the payments on your car and mortgage are current, it is often possible in chapter 7 proceedings to arrange to keep them; this is particularly true if your home has very little equity. Chapter 7 bankruptcy is designed to eliminate your debt, not to strip you of your home, personal possessions and your vehicle. If you are in serious financial trouble, and you do not file for chapter 7 protection, you may have your home foreclosed and your car repossessed due to your delinquency.
Who is eligible for chapter 7 bankruptcy protection?
There were rule changes recently that made it a little more difficult to file for protection under chapter 7, your bankruptcy lawyer in Des Moines is fully aware of the rules. Basically, you will be subjected to a means test where your income and expenses are compared to a state standard. If your income falls below the state median, you can file chapter 7, however, if your income exceeds the median, you will find chapter 13 as your best option. This allows you to pay partial debt over an agreed time period with your available income.
Filing the case:
In co-operation with your Bankruptcy Lawyer In Des Moines, you will prepare and file a petition, along with certain schedules and statements of your current financial condition. In bankruptcy court, you must provide:
* A list of creditors and the amount owed to each
* The source of your income
* A list of your property
* A detailed analysis of your living expenses
All efforts to collect will stop:
As soon as your file for chapter 7 protection, all of your creditors are made aware of this, and they must cease any further efforts to collect the debt owing. This is one of the main benefits of filing for bankruptcy; everything is just left on hold. This allows the bankrupt a little much need breathing space.
There are certain instances where a creditor can pursue collection, but this has to be arranged through the court.
There is a bankruptcy lawyer in Des Moines that can help you with filing for bankruptcy. Kevin Ahrenholz has been practicing bankruptcy law for 20 years and as a seasoned professional, his strategies result in successful resolution.
