Cedar Rapids Bankruptcy Attorneys

Helping You Achieve Financial Relief

If you’re struggling with overwhelming debt, you may be wondering if there
is any way you can resolve your situation. At
Howes Law Firm, P.C., we help people just like you understand their financial relief options.
Our bankruptcy lawyers focus on Chapter 7 bankruptcy cases for individuals,
and we can help you determine whether this form of bankruptcy is your
best option.

Call our law office in Cedar Rapids at
(319) 264-2922 for more information.

Why File for Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as "liquidation bankruptcy,"
can allow you to dismiss most of your debts and start over debt-free.
The entire process can take anywhere from four to six months, and offers
a relatively straightforward path to debt relief.

Some debts commonly discharged in Chapter 7 include:

• Medical bills
• Credit card bills
• Certain personal loans
• Past due rent
• Certain tax-related debts
• Past-due utility bills

Filing for Chapter 7 will also implement the automatic stay. The automatic
stay in bankruptcy will pause nearly all debt collection actions against
you, include wage garnishments, contact from creditors, and court proceedings.

Understanding Bankruptcy Exemptions in Iowa

When people hear about bankruptcy, they often fear losing all of their
property and assets. However, the state of Iowa allows residents to protect
their essential property from bankruptcy liquidation.

Essentially, all property falls into two categories:

• Exempt property – Usually includes essentials you need to maintain a living. Examples
  include equity in your home, and your retirement accounts. Certain assets
  are also exempt up to certain value limits such as vehicles, cash on hand,
  furniture and appliances and money owed to you.
• Nonexempt property – Often includes luxury items or property with high equity over certain limits.

Iowa bankruptcy exemptions include the following:

• Up to $7,000 in a vehicle
• Up to $7,000 of household furniture
• Up to $1,000 of any personal property
• Wedding ring or engagement ring
• One rifle or shotgun
• Alimony and child support
• Cemeteries and burial property
• Insurance benefits
• Pension and retirement benefits
• Veterans benefits

You may claim the above exemptions or additional ones depending on your
unique circumstances. Spouses can choose to file together and double the
exemption amount.

Qualifying for Bankruptcy

Not everyone qualifies for debt relief via Chapter 7. Whether you can file
a Chapter 7 bankruptcy depends on your income and the result of the means
test. The means test determines whether your income is truly insufficient
to repay your debts without filing for Chapter 7.

If your income falls under your state’s median income for households of
your size, you can automatically qualify for Chapter 7 bankruptcy. Otherwise,
the courts will look over your expenses over the past six months and determine
what amount of your expenses are "allowable" or essential. Whatever
remains is your disposable income that could potentially be used to repay
your debt.

For the means test, you will need to provide the following documents:

• Tax returns
• Six months of employment, income, and investment statements
• Government-issued identification
• Loan statements
• Bank statements
• And more

The trustee may request more information to evaluate your situation. You
must consult an attorney before submitting legal documents to court.

Once you have filed the necessary documentation, you will attend a
341 hearing, which allows the trustee to ask questions and verify the details of your
bankruptcy case. Then, you will need to complete a debtor education course
and file a completion certificate both before and after the actual bankruptcy filing.

Providing Support Throughout Your Bankruptcy Case

At Howes Law Firm, P.C., we believe in providing high-quality legal counsel
to those who need it most. We work alongside you to determine whether
Chapter 7 bankruptcy is right for you and guide you through the filing
process. Our team creates legal strategies backed by over 30 years of
combined experience.

Give your bankruptcy case to a team you can trust.
Schedule your free initial consultation today.