Bankruptcy itself sounds like a big problem, but that’s because of the way that bankruptcy is portrayed by the media and how we think of it as a society, here in Iowa and around the country. In reality, and for people who file for bankruptcy, it is actually the solution to a whole host of financial problems. People who are facing potential foreclosure can get their mortgage under control by filing for bankruptcy, and they can avoid losing their home if they are willing and able to make reasonable payments. You can also find ways to have tax debt forgiven or deferred in a way that makes them payable over time.
There are many reasons to file for bankruptcy in IA. There are even some surprising situations which can be resolved with bankruptcy. For example, if you do not have car insurance but are in an accident, you will lose your license and be in debt for the damage you’ve caused. By filing for bankruptcy you can actually be released from your financial obligations and get your license back. Of course, the outcome will depend on your precise financial situation and what assets you have, but under the right circumstances and with the right bankruptcy lawyer in Iowa, you can benefit from filing for bankruptcy.
Another common way that people use bankruptcy to their benefit is to get their debt reorganized and restructured. Chapter 13 bankruptcy is a way to get your debt partially forgiven, especially outrageous interest, but at the same time you’ll keep most of your debt and pay it off. The idea is that you can probably handle your debt under better circumstances, such as if you consolidated all your debt and had one monthly payment that is low enough for your to afford to pay it. That way you can move forward and get through the debt problems with minimal loss of assets.
And of course, if you are seriously in debt and you absolutely cannot see a way out, there’s always Chapter 7 bankruptcy. This type of bankruptcy is filed by people in IA who are ready to leave their past behind, at least financially speaking. If you own a home that you are unable to pay off, and if your mortgage is still bigger than the value of your home, you may be able to file for bankruptcy and give up the home, walking away without the debt or the house. This may sound sad, but it can mean true relief if there is no other way out.
If you live in IA and are considering bankruptcy, contact the Jankins Law Firm and Mike Jankins, a true professional and an experienced bankruptcy lawyer.