There are two main personal bankruptcy types available for people who want to consider bankruptcy in Iowa: Chapter 7 and Chapter 13.
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The most common personal bankruptcy is Chapter 7. Filing for a Chapter 7 bankruptcy in Iowa will discharge your personal liability for unsecured debts. In Chapter 7 bankruptcy, you do not repay your creditors.
The purpose of a Chapter 7 bankruptcy is to get rid of or "discharge" your legal responsibility to pay certain debts. Filing for a Chapter 7 bankruptcy in Iowa can allow for a "fresh start" with debt resolution and relief programs.
If you have filed a Chapter 7 bankruptcy in the past 8 years, you do not qualify to file yet. If you have filed a previous Chapter 7 bankruptcy case and 8 years have passed, you now qualify to file again.
The second type of personal bankruptcy is a Chapter 13 bankruptcy repayment plan. In a Chapter 13 bankruptcy, you repay your creditors in 36 to 60 monthly payments in an amount that fits your budget. This option may be necessary if you have a high income. According to Iowa bankruptcy law, everyone in Iowa qualifies for a Chapter 13 bankruptcy, regardless of income.
A Chapter 13 plan requires a debtor repay some amount by making a monthly payment over a 36 to 60-month plan. A Chapter 13 plan is similar to a debt consolidation plan but is not voluntary and can include all debts.
A Chapter 13 repayment plan does not require that you pay your creditors back 100%. You pay your creditors based upon your ability to pay. Any unsecured debts that are not paid by the end of your plan are discharged and forgiven, just like in a Chapter 7 case.
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We are a debt relief agency. We can help you file for Chapter 7 and Chapter 13 relief under the Bankruptcy Code.
The legal information provided for on this website is intended to be general in nature. The facts and circumstances of each person's bankruptcy can have a bearing on the information on this site. You should not rely completely upon this information, without first contacting an attorney who is experienced in the area of bankruptcy law.
