The most important and well-known benefit of filing for a personal bankruptcy in Iowa is to get rid of your bills and debts. Chapter 13 and Chapter 7 Iowa bankruptcies offer benefits from the day you initially file.
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.
A Chapter 13 bankruptcy 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.
However, filing the bankruptcy petition has other benefits as well.
By filing your Chapter 7 bankruptcy petition we can immediately STOP all wage garnishments and stop any bank account levies or garnishments. Creditors cannot continue to collect from you by garnishment or levy after the bankruptcy is filed and in many cases, we can actually get back the funds that were most recently garnished. If you are wondering how to stop wage garnishment, Chapter 7 bankruptcy may be a good option for you.
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.
After the bankruptcy is filed no creditor can continue to make harassing phone calls to you demanding payments. They are required by law to stop these phone calls and to stop sending you bills, notice or harassing letters. Bankruptcy can be a good option for individuals wondering how to stop collection calls and harassing calls from creditors.
When you file a Chapter 7 bankruptcy in Iowa we can immediately stop any lawsuits that may have been filed against you and stop any judgments entered against you from turning into garnishments. Even if a creditor has already sued you in court, or has already gotten a judgment against you, we can discharge that debt when you file a Chapter 7 bankruptcy.