Bankruptcy Help in Iowa

One bankruptcy case can deal with several creditors at once. Filing triggers the automatic stay, a federal protection that generally halts collection activity.

What Bankruptcy Can Do

Chapter 7 can discharge many common unsecured debts, meaning debts not backed by property, such as credit cards and medical bills. A discharge is a court order ending your legal responsibility for the debts it covers.

A Chapter 13 repayment plan lasts three to five years. It can help you catch up on missed house or car payments over time. In most cases, a large percentage of eligible debt is wiped out after successful completion of the plan. The total amount you owe does not set your monthly payment.

Your payment is based on the income left after payroll deductions and necessary living expenses. Those expenses can include housing, utilities, transportation and medical costs. The court compares those expenses with IRS standards.

There Is No Minimum Amount Of Debt

Federal law does not set a minimum debt amount for filing. The federal eligibility law does not require a set balance before you can ask for relief.

We look at your income, expenses and types of debt, not only the total balance. If payments leave no room for basic expenses or barely reduce the balances, it makes sense to ask about your options. Your income, expenses and types of debt will affect which option may fit.

You can compare the two main bankruptcy chapters and read more about bankruptcy relief in Iowa.

Signs That It May Be Time To Talk

These signs are not legal tests. They can show that your current payment plan is no longer working:

• Using credit cards for groceries, gas or utility bills
• Making minimum payments while balances stay the same or grow
• Borrowing from family to cover regular monthly bills
• Receiving a collection lawsuit, wage garnishment notice or repossession warning
• Considering a loan against your home to pay credit card debt
• Thinking about withdrawing retirement savings to keep up with payments

Borrowing against your home can turn credit card balances into debt tied to your property. Taking money from retirement can reduce savings that Iowa law may protect. It may also lead to taxes or penalties. Before you borrow against your home or use retirement money, we can explain how bankruptcy may affect your debts and property.

Using Retirement Savings To Pay Debt Can Be Costly

An exemption protects certain property in bankruptcy. Iowa law protects several types of property. The protection available to you depends on what you own and the facts of your case.

Equity means the value of property after subtracting what you still owe on it. Iowa protections can include:

• Qualifying retirement savings
• Your home
• Up to $7,000 in vehicle equity
• Up to $7,000 in household goods
• Up to $10,000 in work tools

Iowa’s retirement protections cover certain qualifying accounts. The protection for a specific account depends on the type of account and your facts.

If you withdraw retirement money, you may lose protection that would have applied in bankruptcy. It can also create tax costs or penalties. Talk with us before using retirement money to pay credit cards or other bills.

What Happens On A First Call

The consultation is free and does not commit you to file. We ask about your debts, income, property and main concerns. We explain how Chapter 7 and the other available chapter work. We tell you which documents and other information we need to review.

If you decide to move forward, we explain the next steps and provide a written agreement. You can read more about what happens during a free consultation before choosing a time.

Getting Help Without Committing To Anything

We explain Chapter 7 and Chapter 13, prepare bankruptcy cases and guide clients through court. We do not defend collection lawsuits, sue debt collectors or offer debt settlement or credit repair.

This work can be handled by phone, video, email, fax and document signing. In-person meetings are optional and available by appointment. We typically charge a flat fee for Chapter 7. We agree on the amount before filing.

Submit the form and choose a time on the calendar. We review what you send before the consultation. You can also learn more about our firm before scheduling. Call Zisman Law at 641-472-5141 or request a free consultation.