Chapter 7 bankruptcy cancels most debts

The primary purpose of chapter 7 bankruptcy is to provide people who are in debt over their heads to get a fresh financial start. Chapter 7 does not require a plan to pay creditors as most debt is discharged when the case is completed. It normally takes three to four months from beginning to end.

The benefits of filing for chapter 7 bankruptcy in Des Moines are:

Protect what property you have:

The court recognizes the need for housing, transportation, clothing and other personal and home basics, so you will be able to keep these things, including your retirement plan and savings accounts. Once you have filed for protection, if any of your creditors make an attempt at collection or repossession, they are breaking the law and can have the court sanction and fine him.

The harassment stops:

Bill collectors can hound you to the point of no return. They can call you around the clock; send threatening letters bother you at your place of employment and harass your family. This all stops instantly when you file for Bankruptcy In Des Moines. If any of your creditors want any answers on their claims, they must contact your lawyer.

Although the case may not close for perhaps four months, the moment you file for bankruptcy protection the court will impose an automatic stay against all of your creditors. If there are any violations of the court- ordered stay, your lawyer will know the solution.

It puts a halt to wage garnishments and lawsuits:

Prior to filing for bankruptcy, a creditor may have been successful in winning a judgment against you in court. This usually means the creditor can garnish up to 25% of your income; furthermore, the creditor can attach your bank deposits as well as putting a lien on your house. A garnishment can make it very difficult for the debtor to even provide himself and his family with the barest of necessities.

Chapter 7 bankruptcy puts an end to all of this. The garnishment will either not proceed if it has yet to start, or it will stop if already in process. Filing for chapter 7 prevents liens against your property and stops any bank levies.

Wipes out debt:

When you file for chapter 7 bankruptcy in Des Moines, all your credit card debt, as well as medical bills, personal loans and payday loans are eliminated. If you have debt, which is secured with any of your property as collateral, you have the choice of continuing with the payments or surrendering the collateral.

Eliminate repossession and foreclosure:

Unfortunately, many people believe that when their home or car has been repossessed they no longer have any financial obligation. This is not true and the creditor can continue pursuing the collection of the unpaid debt. These deficient debts get wiped out when bankruptcy is declared.

 

If you feel you have to file for bankruptcy in Des Moines then you are invited to consult with Kevin Ahrenholz, Bankruptcy Lawyer. His understanding of the issues confronting his clients means they get the best in representation.

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