Deeply in Debt? Contact a Bankruptcy Attorney in Des Moines for Help

People dread the thought of filing for bankruptcy. They have to remember that it is put in the law to help people get a fresh start. It is a legal process that they have the right to use and they shouldn’t be embarrassed by taking advantage of it. They should contact a Bankruptcy Attorney Des Moines, who will help them negotiate the often complicated process.

Any person who makes less than the median income in Iowa is allowed to file for a Chapter 7 bankruptcy. This is often called a “Fresh Start” bankruptcy and it only takes about six months to complete. After a court-appointed bankruptcy trustee sells off all of the debtors non-exempt property, the proceeds are divided among creditors. They debtor is then allowed to resume their life. A Bankruptcy Attorney in Des Moines will protect all of the debtor’s protected assets such as their home, car and equipment they need to make a living.

People who make over the median income are assumed to have the monthly income to pay off some of their debts in an orderly manner. Federal law now requires that they use Chapter 13 of the bankruptcy code to get their finances back in order. A bankruptcy trustee will evaluate their living expenses and put them on a strict budget. Everything they earn above that level, will be used to pay off their debts. This budgeting and payment process can last up to 5 years. The Bankruptcy Attorney in Des Moines will ensure that the trustee allows the debtor enough money to live.

The debtor has to complete the entire time period to have the remainder of their debts forgiven. If they fail to complete even the last month’s payment in a five-year program, they will then be responsible to pay off the entire debt.

Bankruptcy does erase certain debts such as tax liens, student loans or child support payments. A Bankruptcy Attorney Des Moines will work with their client to ensure that they straighten out all of their debt problems. A person is only allowed to declare bankruptcy ever 8 years. If they don’t get their entire financial situation straight during a bankruptcy process, they can be worse off.

 

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