How To File Bankruptcy In Iowa

How Do I Start Bankruptcy In Iowa

If you are planning on filing for bankruptcy, you must first complete a pre-bankruptcy from a provider the U.S. Trustee Program has approved. The course will help you assess whether you can pay your debts outside of bankruptcy. When you file, you must include a certificate showing that you completed the course within 180 days of filing.

When you file for bankruptcy using an attorney, they will generally take care of the filing for you. If you are filing for bankruptcy without a lawyer, you will begin the process by downloading the correct forms for your district bankruptcy court.

What Are The Federal Bankruptcy Exemptions

Although most states require bankruptcy filers to use state-specific bankruptcy exemptions, Iowa law allows you to use either state or federal exemptions. However, you must choose one or the other you cannot use parts of both. If you choose to use federal exemptions when you file for bankruptcy, then you may keep:

• $23,675 of equity in your primary home. This is the homestead exemption you can use it to protect residential real estate as long as you live there. However, this does not extend to investments in rental properties.
• Your vehicle up to a value of $3,775.
• Jewelry valued up to $1,600.
• Household items worth up to a total of $12,625, as long as no single item is worth more than $600. This includes furniture, appliances, clothes, animals, books, etc.
• Tools for your work, including books, valued up to $2,375.
• A total of $12,625 in loan value, dividends or life insurance policy interest.
• All health aids.

How Do I Find Out If My Bankruptcy Case Is Closed In Iowa

Debtors file bankruptcy to discharge debts and get financial relief from the court. An Iowa bankruptcy case is closed when the court enters a final decree or order. The debtor can also complete a bankruptcy case if they default on a court order or fail to follow up with their bankruptcy petition.

The court would usually send a notification when a case is closed. Debtors in Iowa can sign up on the Debtor Electronic Bankruptcy Noticing program. This electronic noticing program is available in both the Northern and the Southern District of Iowa. To be eligible for this program, the debtor must complete and file a Debtor Electronic Noticing Request form with the court where their case is filed. The debtor signing up for this program has the brochure and form instruction pamphlet that comes with the form to guide them when filing the form. The court would send all notices and orders to the debtor via this program.

The debtor can also find out about the status of their case using the PACER and McVCIS databases. For more information, parties can contact the Clerk’s office of the Northern District of Iowa at 286-2200 or 233-3939 and Clerk of Court of the Southern District of Iowa at 284-6230.

Don’t Miss: Certified Bankruptcy Petition Preparer

Can I Get Free Bankruptcy Forms

Yes! All official federal and local bankruptcy forms are available free of charge. You can find the links you need by visiting our bankruptcy forms page.

If you want copies of bankruptcy forms with plain-language instruction and tips for filling them out, you might want to use a good self-help book like How to File for Chapter 7 Bankruptcy or Chapter 13: Keep Your Property and Repay Your Debts Over Time, both published by Nolo.

Iowa Legal Aid Organizations

If you cannot afford to hire a lawyer, you may be able to get free legal assistance from the organizations providing legal aid in Iowa. Folks who need to file a Chapter 7 bankruptcy in Iowa can visit the website for Iowa Legal Aid to find out if they are eligible for assistance. Information regarding other resources for Iowa bankruptcy matters can also be found on the website for the Bankruptcy Court for the Northern District.

Don’t Miss: Leasing A Car During Chapter 13

Take Credit Counseling Course

You have to take two mandatory credit counseling courses to complete your Chapter 7 bankruptcy. The Chapter 7 trustee may request the certificate of completion in the meeting of creditors. The first course is a pre-bankruptcy course, and the second is the pre-discharge course.

If you are filing with an attorney, your attorney may have suggestions for both the credit counseling and debt education course. If not, you can see the list of approved credit counseling courses in Iowa.

Print Your Bankruptcy Forms

Now that the hardest part is done, you are ready to pull together everything you’ve so diligently collected and prepared and take the next step towards filing a Chapter 7 bankruptcy in Iowa. Most bankruptcy districts, including Iowa, only allow lawyers to use the court’s electronic court system. If you are filing without a lawyer you will have to bring a paper copy of all of your forms to the courthouse. Although you only need one copy of everything for the court when filing bankruptcy in Iowa, it’s a good idea to take the time to print a second copy for your own records. That way you know you have everything that the court has and can refer back to it later if you need to. The documents you will provide to the court for your Chapter 7 bankruptcy in Iowa may add up to 50 pages or more, depending on how many creditors you have. Even though it may seem like a waste, don’t print anything double-sided the court won’t accept that. Use regular, white, 8.5″ x 11″ paper and don’t forget to sign where necessary.

Read Also: Rent After Bankruptcy

Alternatives To Chapter 7 Bankruptcy

It is possible to conduct an out-of-court agreement between a debtor and his/her creditors for debt repayment between them all, and this is referred to as a workout. This agreement is voluntary for both the debtor and the creditor and often removes the stigma of bankruptcy and simplifies the complications during a standard bankruptcy procedure. Lawyers at Witherwax Law, P.C. are experienced in debtor-creditor law and bankruptcy, and will help advise both debtors and creditors to determine the best course of action.

Learn The Basics Of Bankruptcy

Bankruptcy is a legal proceeding created to give people a fresh start after financial disasters. If you’ve explored your alternatives and can’t see a way out from under your debt, bankruptcy may be the right solution for you.

There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. Chapter 7 can wipe out most of your debts in a matter of months in exchange for giving up all of your property that the bankruptcy law does not protect.

Chapter 13 takes three to five years. During that time, you repay some or all of your debts under a payment plan approved by the bankruptcy court. Its often used by people who are behind on mortgage payments and want to use Chapter 13 to catch up. Most folks who file for bankruptcy prefer to file for Chapter 7 if they qualify, because you can get out from under lots of debt in a matter of a few months.

To learn more, see How Chapter 7 Bankruptcy Works and How Chapter 13 Bankruptcy Works.

You May Like: Filing For Bankruptcy In Illinois

Determine Whether You Need Help To File Bankruptcy In Iowa

Did you know that some people file for bankruptcy without an attorney? Many people prefer using a bankruptcy lawyer given the complexity of filing bankruptcy, but it is possible to often file Chapter 7 bankruptcy without an attorney. Filing Chapter 13 without an attorney may be much more challenging.

What Is Chapter 7 Bankruptcy In Iowa

Chapter 7 bankruptcy in Iowa is a legal proceeding via which debtors can discharge unsecured debts. Although filing a chapter 7 bankruptcy leads to the liquidation of assets, it is a preferred option for getting fast relief from debts. However, a chapter 7 bankruptcy does not discharge all debts. For instance, debtors can not discharge unsecured debts like student loans and secured debts such as home mortgages and car loans. In a Chapter 7 bankruptcy, the bankruptcy court assigns a bankruptcy trustee to handle the sales and distribution of sales proceeds to creditors. After collecting a commission fee, a bankruptcy trustee may send any remaining value from liquidated assets to the debtor.

Furthermore, not all assets are liquidated in a chapter 7 bankruptcy – state exemption laws protect properties and support, such as real estate, furniture, jewelry, and insurance benefits.

Don’t Miss: How To File Bankruptcy In Ca

How Much Does It Cost To File Bankruptcy In Iowa

• Thursday December 23rd, 2021

The fees you might expect to pay to file bankruptcy in Iowa depend on the type of bankruptcy case you file. Additionally, different attorneys will charge their clients varying legal fees and costs. If youre considering filing for bankruptcy, its important to understand the costs you might incur when choosing to file for Chapter 13 or Chapter 7 bankruptcy.

Pension And Retirement Exemptions

Iowa provides an exemption for most pension and retirement benefits, including:

• Most tax-exempt retirement plans, such as 401s, IRAs, and defined benefit plans
• Federal government pensions
• Firefighter, police officer, and peace officer pensions
• Public employee pensions

• Necessary alimony and child support payments
• The property of a business partnership
• Liquor licenses

Recommended Reading: Donald Trump Bankruptcy History

A Iowa Trustee Is Assigned To Your Bankruptcy Filing

A bankruptcy trustee is assigned to your bankruptcy case to review the paperwork and look for non-exempt belongings that you may own. You have to submit such forms as a recent tax return to the trustee. If you have non-exempt belongings, the trustee may manage the sale and liquidation of those belongings.

See the Chapter 7 and Chapter 13 trustees in Iowa for bankruptcy district, name and contact information. As a Chapter 13 bankruptcy is much longer, you may have more interaction with the Chapter 13 trustee or someone from his/her office.

What Is Chapter 13 Bankruptcy In Iowa

In a Chapter 13 bankruptcy, individual or non-individual debtors create a repayment plan to pay off creditors from the debtor’s future income. Debtors often file for a Chapter 13 bankruptcy in Iowa to avoid selling off their properties or businesses. In addition, a Chapter 13 bankruptcy petition stops interests from accumulating on tax debts, prevents home foreclosure, and enables debtors to meet up on missed taxes or mortgage payments. Note that debtors must submit data on all income sources, expected future earnings, and expenses before the court approves the repayment plan.

You May Like: Filing Bankruptcy In Wisconsin Without A Lawyer

Take Second Mandatory Debt Education Course

You must take a second mandatory debt education course in Iowa before filing for discharge. Once you receive the certificate of completion, your attorney or you would add that into your filing to show proof of completion.

See the list of approved debtor education courses in Iowa. Once filed, you now just have to wait for discharge.

Successfully Passing The Chapter 7 Bankruptcy Means Test

Passing the means test is not the last step in the process, as it is not the only qualifying factor. In Iowa, petitioners will be required to also submit two forms. These forms are known as Schedule I and Schedule J . If the individual has an income surplus, he or she will be court ordered to pay creditors monthly. This changes the case to a Chapter 13 bankruptcy.

Finally, qualifying for a Chapter 7 bankruptcy does not mean that a petitioner must file one. The test will simply determine that the petitioner can file for a Chapter 7 bankruptcy. It is important to explore all the available alternatives prior to making a decision. A qualified bankruptcy attorney versed in the laws local to Iowa is a invaluable resource for determining if a Chapter 7 bankruptcy is the best decision.

Need Help with the Chapter 7 Bankruptcy Means Test?

Despite the wealth of information available to help us understand the Means Test and who qualifies, the particular circumstances of individual filers can greatly vary. A qualified Pennsylvania bankruptcy attorney at your side can help fully allay your concerns, and help you understand how you can pass the means test and file for Chapter 7 bankruptcy.

Also Check: Tfs 888 729 2413

Using The Available Resources To Resolve Bankruptcy Issues

Steven Klesner is a lawyer who accepts routine as well as very challenging bankruptcy cases. We are a technologically savvy law firm that serves clients throughout the state via online meetings and other innovative technology. We provide a stand-alone website, , that provides bankruptcy education and informs clients on such matters as to what information they need to gather and credit counseling requirements.

Attend A Creditors Meeting

Several weeks after you file for bankruptcy, you will be required to attend a 341 hearing, which is also called a “creditors meeting.” The bankruptcy trustee assigned to your case will lead the meeting and may ask you questions about the information you’ve provided on your bankruptcy forms. Creditors may also show up at the hearing to ask you questions.

The bankruptcy trustee will tell you exactly what to bring to the meeting, but you should be prepared to bring the following:

• pay stubs
• tax returns for the past few years
• bank statements
• property ownership documents, like deeds and the pink slip for your car, and
• copies of mortgage documents.

The book How to File for Chapter 7 Bankruptcy provides detailed information about what to expect at a 341 hearing.

Read Also: Personal Loans After Filing Bankruptcy

Who Can File For Chapter 13 Bankruptcy In Iowa

Persons can file for a Chapter 13 bankruptcy if they want to prevent certain assets and properties from liquidation. In addition, only persons with a stable and robust financial position are eligible to file under chapter 13. Thus, the Bankruptcy Code requires debtors to take the means test to determine their eligibility. According to the means test, eligible persons must have a high disposable income and earn above the state’s median income level.

There’s also a debt requirement in Chapter 13 bankruptcy – debtors must owe less than $1,257,850 secured debts and $419,275 unsecured debts.

How To Determine If The Earned Income Is Greater Than The Residential States Average Earnings

One of the initial questions in the Chapter 7 means test asks if the petitioner earns an income that is below the average income of his or her home state. If this is shown, the petitioner will not longer need to complete the rest of the means test. He or she will be a qualifying applicant for a Chapter 7 bankruptcy.

While the standards for this determination change fairly often in order to reflect increases in inflation and cost of living, the Iowa income averages currently break down as follows:

*For all households that exceed for active earners, add $8,400 for each individual in excess.

Read Also: How Much Does It Cost To File Bankruptcy In Ky

How Much Does It Cost To File Bankruptcy

Its impossible to provide a one-size-fits-all quote, but you can expect to pay a court filing fee, administrative fee, trustee surcharge, and other attorney fees. Our bankruptcy attorney can provide you with an estimate after we analyze your case during a free consultation. Bear in mind that the person filing is usually the one who pays for bankruptcies.

Is Bankruptcy An Answer To Debt Relief

A Disability May Occur To Anyone At Any Point In Time causing serious medical debt

A disability may occur to anyone at any point in time, but the gaping fact is the treatment and costs associated with medical treatment from a doctor or hospital. The treatment of a person may be quite expensive. The person may not have enough and may have to take loans to get treated. The loan could mount to more than a person will make in their entire lifetime and make it difficult for the person to ever clear their debts. Getting a disability benefit may help him swing through the daily chores and monthly living but will not help him clear the loans and get a fresh start from the debt. With disability, the person cannot be employed for gainful income and hence is left with little or no resources to clear the debt. People stuck in such problems can opt for filing a bankruptcy case.

There are two chapters in the USA court that allows the debtor to file a case under bankruptcyChapter 7 & Chapter 13. The applicant needs to fill out the form above describing his / her situation and the need as per their requirement, the legal representatives will offer suggestions will offer free bankruptcy advice during the consultation and the cost to file for bankruptcy.

Chapter 7

Chapter 13

Don’t Miss: How To File For Bankruptcy In Ma

What Do Iowa Bankruptcy Records Contain

Iowa Bankruptcy records customarily contain the debtor’s personal information, like the name, address, and contact information. A bankruptcy record also includes the following relevant information in a bankruptcy record:

• Case number
• The name of the debtor
• Judge in charge
• Chapter filed
• Amount of asset
• Contact information of the attorney for the debtor
• 341 creditors meeting details
• Discharge date
• The closing date

Can I File For Bankruptcy In Iowa

Not everyone can file for bankruptcy under either Chapter 7 or Chapter 13. If you would like to file under Chapter 7, you will need to show the court that your income is low enough to qualify using one of two means tests.

The first means test simply looks at whether your household income is less than the median income for Iowa households of the same size. If your income is lower, you can file under Chapter 7. According to U.S. Census data, Iowa households had the following median incomes in November 2020:

• One person: $51,095
• Three people: $80,912
• Four or more people: $95,199

If your household income is greater than the state median, you may still qualify to file under Chapter 7 if you can show that you have very little or no discretionary income each month. That is usually calculated based on a formula that takes into account your average monthly earnings and monthly expenses.

To file under Chapter 13, you will only need to show that you have a steady income that will cover the required payments under your plan, unsecured debts of $419,275 or less, and secured debt of no more than $1.26 million.

Read Also: Filing Bankruptcy In California