There are two main bankruptcy options available to most people in need of help who want to consider filing for bankruptcy in Iowa.
The first, and most common, is a Chapter 7 bankruptcy. Filing for a Chapter 7 bankruptcy in Iowa will discharge, or get rid of, your personal liability for unsecured debts like credit cards, medical bills, and others. In Chapter 7 bankruptcy, you do not repay your creditors.
The second option is a Chapter 13 bankruptcy repayment plan. In a Chapter 13 bankruptcy, you repay your creditors, although not necessarily in full, in 36 to 60 monthly payments in an amount that fits your budget. This option may be necessary if you have a high income. Both options are discussed in this section in further detail.