Iowa state laws require all claimants who wish to file for bankruptcy to pass the means test as defined by the United States Bankruptcy Act. To pass this test the claimant should possess an income that is more than $51,186 to qualify for chapter 13 and fall below this median for chapter 7. However, further stipulations do apply in these cases. Claimants who wish to discuss their options should contact a bankruptcy law firm Cedar Rapids.
Why Bankruptcy is Advantageous During Foreclosure
By hiring a bankruptcy law firm Cedar Rapids, the consumer could avoid foreclosure. The first step in accomplishing this goal is to initiate an automatic stay. However, this action will stop this process for a temporary amount of time in chapter 7. After the liquidation process has concluded, the consumer is liable for their mortgage payments and could enter foreclosure if the payments are not caught up.
Chapter 13 overs a three to five-year window in which the automatic stay is upheld. These consumers can utilize their disposable income to bring these payments to current. The repayment plan for their bankruptcy case could include the late payments or a reduction in mortgage fees. This allows them ample time to stop a foreclosure and remain in their home.
Exemptions apply for automobiles as well. If the equity accumulated is less than the amount owed the bankruptcy court will exempt the property and prevent repossession. It further allows the consumer to pay off the balance through their repayment plan.
Chapter 7 is considered the fastest form of bankruptcy and debt settlement. The normal duration for a chapter 7 bankruptcy is three to six months. This includes the sale of all property and assets required by the court. A bankruptcy law firm Cedar Rapids can protect the rights of the consumer through this process and ensure that any exempt values are remitted to the consumer after the sale is final. He or she can monitor the sale of the properties to protect the interests of the consumer as well. Consumers who wish to file a claim should contact a bankruptcy law firm Cedar Rapids to file a Linn County claim.