Yes, you can still get relief with Iowa Bankruptcy!

Despite the rumors you hear, relief is still available under the bankruptcy law. The main issue now is your income. If you are below the Iowa median income chances are you will be fine for a full discharge under Chapter 7.

Iowa Annual Median Household Income
1 Person $37,759
2 People $50,581
3 People $59,331
4 People $69,723
5 People $76,623
Notes: Social Security is not included in income, Add $6300 for each additional person,Updated 2-1-08

Most people can discharge all their credit card, medical and other misc. consumer debt and keep their home and car (and continue making those payments) if desired or surrender them and discharge the mortgage debt.

You normally have at least 60 days to vacate your home from the date of filing if you are surrendering and do not make payments during that time. If you are surrendering your home in Chapter 7 you will discharge all of the mortgage debt (first mortgage, second mortgage, home equity loans, lines of credit etc.) even if the home is later sold for less than what you owe. The major non-dischargeables are back taxes, student loans and child support. Most people do not lose any property when they file Iowa Bankruptcy. Once you have decided to file bankruptcy you should stop using credit cards and stop making credit card payments.

Although we hope you will live on a cash basis and avoid credit after your bankruptcy you can often get a good interest rate on a home purchase two years after your Iowa bankruptcy and most people get credit card offers a lot sooner than that. SmartMoney Article: Credit After Bankruptcy

There are new requirements under the 2005 bankruptcy law changes like taking online classes and providing your tax returns but they are manageable. Feel free to contact Jeff by email if you need some quick feedback. Jeff can often answer calls and emails after hours as time allows.

Jeff represents clients in the Des Moines area and throughout Southern Iowa including Adair, Adams, Appanoose, Audubon, Boone, Cass, Clarke, Clinton, Dallas, Davis, Decatur, Des Moines, Fremont, Greene, Guthrie, Harrison, Henry, Jasper, Jefferson, Johnson (Iowa City), Keokuk, Lee, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Monroe, Montgomery, Muscatine, Page, Polk (Des Moines area), Pottawattanie, Poweshiek, Ringgold, Scott, Shelby, Story (Ames area), Taylor, Union, Van Buren, Wapello, Warren, Washington, and Wayne counties. Jeff files all his cases in Des Moines so you would have one trip to Jeff's office to prepare the petition and one trip to your hearing in Des Moines about 30 days after filing. Your discharge comes about 9 weeks after your hearing. See Jeff's primary Iowa Bankruptcy website.

Iowa Bankruptcy Law

Iowa bankruptcy attorney Jeff Mathias covers Iowa bankruptcy law.

Iowa Home Foreclosure and Bankruptcy

Iowa bankruptcy attorney Jeff Mathias talks about home foreclosure and bankruptcy.

Iowa Foreclosure Law

Foreclosure rates are at an all time high and foreclosure triggers many Iowa bankruptcies, so if you are going through this, do not feel like the lone ranger. In fact, as of Feb. 2008 10% of Americans owe more on their home than current value. Most of my clients file a Chapter 7 bankruptcy (full discharge) and surrender their home back to the bank if it is in Iowa foreclosure. You normally have at least 60 days before you need to vacate during which time you do not make mortgage payments. If you would like to keep your home and can catch up the payments within a few months, a full discharge under Chapter 7 Iowa bankruptcy is usually best if you qualify.

If you are too far behind on your payments to catch up within a few months you may want to consider a Chapter 13 repayment if you are sure you can handle the payments. But beware, many people who file a Chapter 13 in an attempt to keep their home find they cannot afford the house payments plus the Chapter 13 payment and end up surrendering their home after all and at more expense due to the higher cost of a Chapter 13. In most cases these clients end up filing a Chapter 7 after all, which they should have done in the first place. See Jeff's Iowa Foreclosure Site.

Iowa Bankruptcy = Taking Responsbility

Iowa bankruptcy courts consider Iowa bankruptcy the responsible approach if you cannot pay your bills.

Iowa Bankruptcy Lawyer Jeff Mathias- Office Appointment

Iowa bankruptcy lawyer Jeff Mathias talks about the Iowa Bankruptcy office appointment.

Iowa Bankruptcy Hearing

Iowa bankruptcy lawyer Jeff Mathias covers the Iowa bankruptcy hearing.

Iowa Bankruptcy Discharge

Iowa bankruptcy attorney Jeff Mathias talks about the Iowa bankruptcy discharge.

Iowa Bankruptcy - Getting Started

If you are below the median income (see chart below), chances are you will be eligible for Chapter 7 bankruptcy here in Iowa. When I do quick case evaluations online or on the telephone I usually also ask about your home. If you are surrendering your home that is fine, no problem. If you are keeping your home that is fine too with Chapter 7. If you are keeping your home and are behind on payments we should discuss that before you come in. If you have charged/cash advanced etc. more than $1,000 on your credit cards in the past 90 days or paid money to your family in the past year we should also talk about that before your appointment. So if one of these is an issue for you or you have other questions, Email Jeff and we can give you some quick feedback.

Otherwise, you may want to simply go to our Set an Appointment Online page.

We do your entire bankruptcy petition during your first appointment in my office and your case is ready to file before you leave. I normally batch file cases on Thursday. You have one hearing here in Des Moines and you are discharged about 9 weeks later.

Fixed Attorney Fee: $900
Filing Fee: $299
Online Certificates $100

Note: You can save $150 on your attorney fee with MyCaseInfo, which allows you to enter your bills and other information in your computer before coming to the office. Email Jeff Mathias if you would like an invite for MyCaseInfo. You are under no obligation. You can start working on it anytime and you do not pay anything unless you decide to go forward when we meet.

Your total cost is $1299. If you are filing a joint (married) case, you just need to pay for the additional certificates since each person must have one of each of the two certificates. But you do not pay me any more attorney or filing fees for a joint filing as you do for a single filing. Some attorneys charge more because they have not streamlined their process the way I have.

If your income is below the median income you should have no problem with a complete discharge under the Bankruptcy Law - Chapter 7.

Iowa Annual Median Household Income
1 Person $37,759
2 People $50,581
3 People $59,331
4 People $69,723
5 People $76,623
*Add $6300 for each additional person *Updated 10-15-07

Here is what you will need to bring to my office:

__$1199 in cash or money order;
__Credit Counseling Certificate (Required-you can get this online at www.cccsinc.org);
__All bills you intend to discharge (credit cards, medical etc.) w/ account numbers,full address;
__Creditor information (full address, account #'s) on debts you will keep like home or car loans;
__Last two months pay stubs from work (including your spouse even if they are not filing;)
__If you do not receive wage income, bring records of other income for the last six months;
__Most recent state and federal tax returns;
__W2's for the last two years;
__Legal Description of your Iowa home if you own from your abstract or tax bill;
__Proof of valuation of your Iowa home such as tax or other appraisal if you have them;
__Photo ID and Social Security Card or proof of social security number.

Click here for more on the Iowa Bankruptcy Process

Iowa Bankruptcy Images & Des Moines Office Directions

America Believes in Redemption

One of the great things about being an American is that we believe in redemption. U.S. bankruptcy law is an important element of the most efficient economy in the world. The ability to get a fresh start if things go badly encourages entrepreneurs to take risks they would not otherwise take. If we still "broke the bench" of merchants who ran in to a tough time we would have very few people willing to innovate. The same bankruptcy law helps people who have lost their jobs in our ruthlessly efficient economy recover as well as those who have had an Iowa foreclosure, high medical bills, experienced a divorce or other financial calamity. A vibrant economy inevitably results in some members needing a fresh start.



West Des Moines Iowa Bankruptcy Office
Somerfield Village (50th & Mills Civic Parkway)
4800 Mills Civic Parkway, Ste. 205 (2nd Floor)
West Des Moines, IA 50265
Local: 515-261-7526
Toll Free: 1-800-997-1395

From Interstate 35
Take the Mills Civic Parkway Exit and proceed east. At the first major intersection -50th and Mills Civic you will see Walgreen’s and the Somerfield Village Center on your right. You are there! Enter at the main entrance in the above picture and come upstairs to Suite 205. Our section of I35 is in WEST DES MOINES. Do not confuse this with the section of I35 North that leads to Ankeny, which is on the East side of Des Moines.



Exit from Interstate 35 on Mills Civic Parkway, Exit 70.

From Interstate 235 or Interstate 80
Go west to I35 South, Take the Mills Civic Parkway Exit and proceed east. Mills Civic is the next exit South of I235. At the first major intersection -50th and Mills Civic you will see Walgreen’s and the Somerfield Village Center on your right. You are there! Enter at the main entrance in the above picture and come upstairs to Suite 205. Our section of I35 is in WEST DES MOINES. Do not confuse this with the section of I35 North that leads to Ankeny, which is on the east side of Des Moines.




Look for the Walgreen's, we are in the same complex: Somerfield Village. Map of Jeff's Iowa Bankruptcy office.



Building lobby. When you arrive...
There is an elevator. Restrooms are at the top of the stairs. There is a Quizno’s sandwich shop and a Coffee Café within a few doors of our office if you arrive early or need lunch.

I'll admit, I am somewhat of an efficiency freak. I have my office designed for efficient & accurate petition preparation. First, I do not use packets. Clients told me they hated them and I found them hard to interpret anyway. So we do your entire petition across my desk. The computer monitor on the left in this picture is where you will watch your bankruptcy petition being drafted. I have found this is the best way to reduce errors and omissions. It is much better to get it right the first time than to try and fix problems later.



A completed Iowa Bankruptcy Petition.



Questions? Email Iowa bankruptcy lawyer Jeff Mathias

Feel free to call me in Des Moines at:
Telephone 515-261-7526 Toll Free 1-800-997-1395

I can often answer email even quicker since I check it after hours as time allows. I can also catch email in spare moments while a client is in my office. In either case I can answer your questions. You pay me nothing for initial consultation. Half of my job is just addressing the fear people have of losing their home or other property & I can often do that in a series of emails.

United States Bankruptcy Code/Iowa Bankruptcy Statutes

Iowa Bankruptcy Court Location

Hearings are held weekdays as early as 8am and as late as 4pm. You have about 30 days notice of your hearing date so there is plenty of time to arrange to miss work. Jeff will be there sitting next to you.

Your Iowa Bankruptcy hearing will be held at the:

Federal Building
210 Walnut
Room 783
Des Moines, Iowa
(2nd & Walnut, downtown Des Moines)

Iowa Bankruptcy Court, Federal Bldg.

Iowa Bankruptcy Court, Fed. Bldg. Mapquest

Bankruptcy Alternatives

Bankruptcy Alternatives

A. Bankruptcy Alternatives- If you are trying to avoid filing bankruptcy.

The banking (primarily credit card) industry wants consumers to believe there are a lot of bankruptcy alternatives; ways to avoid bankruptcy and deal with debt, other than filing personal bankruptcy. That is true, but they don’t tell you that many of these methods to avoid bankruptcy actually lead to greater profits for the banks and more pain for the consumer.

First, reasonable personal bankruptcy alternatives and then the unreasonable personal bankruptcy alternatives preferred by the banks.

Reasonable personal bankruptcy alternatives

Paying it off Yourself:
If you have enough income, you should select the credit card with the highest interest rate and pay as much as possible on that card while making minimum payments on the others. Work your way through all your cards this way. Unfortunately, by the time they are considering personal bankruptcy most debtors do not have enough income for this.

Consumer Credit:
If you have enough income to pay your debt, you may find that a consolidated payment through a consumer credit program helpful. A recent study indicated that only 3-4% of the people who take the pre-bankruptcy credit counseling classes are eligible for repayment through a Consumer Credit program; the vast majority of people who are considering bankruptcy just don't have enough income. We encourage you to avoid distant online firms and try and use local offices instead. Many so called “non-profit” consumer credit firms are actually designed to benefit insiders and they rip clients off left and right, so use a local office.

Debt Compromise:
If you have access to enough money to pay off around 50% of your debt you may be able to settle your debt for less than the full amount owed. Again, many distant online firms will take your money and not settle any debt. Use caution in getting help with debt compromise. A local attorney is often your best bet. Many people sign up with distant debt settlement websites hoping to avoid personal bankruptcy and end up being ripped off.

Unreasonable Alternatives to personal bankruptcy:

Home Equity Loans:
Second and Third mortgages, home equity loans and lines of credit are very popular with banks. This is because they want you to convert debt you could discharge in personal bankruptcy to non-dischargeable mortgage debt. That way if you cannot make the payments later they can take your home and sell it in order to recover the money they are owed. So if you are considering filing personal bankruptcy just remember that if you get more debt on your home instead it could result in loss of your home later.

Consolidation Loans:
Some people will take on more debt in order to pay down their credit cards. If you have the ability to pay the loan off reasonably quickly it could work, but most people do not and continue to struggle, unable to pay for other basic needs due to the high consolidated payment. Worse, many go right out and charge up their credit cards again resulting in a bigger problem. In some cases, consolidated debt cannot be discharged in bankruptcy.

Robbing Peter to Pay Paul:
Too often we see clients who attempt to avoid personal bankruptcy by playing a shell game with credit cards, using one card to pay down another through balance transfers and cash advances. Banks also encourage this practice because it turns old (dischargeable in personal bankruptcy) debt into new (non-dischargeable in personal bankruptcy) debt. If you file personal bankruptcy after making these transfers you may have to pay that money back. Unless you are planning to win the lottery, robbing Peter to pay Paul never works for long and only causes problems when you finally do file personal bankruptcy.

The Ostrich Approach:
Too many debtors simply take the “Ostrich Approach”, burying their head in the ground and trying to avoid personal bankruptcy. They hope nothing bad will happen if they do nothing. Unfortunately, they usually end up being sued and their wages and/or bank accounts garnished or having their home foreclosed. Filing personal bankruptcy can stop this before it starts.

B. Bankruptcy Alternatives- If you do decide to file bankruptcy

The primary consumer chapters are Chapter 7 and Chapter 13, see Chapter 7 vs. Chapter 13 Bankruptcy
Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also referred to as “liquidation” or “straight bankruptcy”. Under Chapter 7 you discharge all debt that can be discharged, usually credit card, medical and other miscellaneous debt. Most Chapter 7 debtors will choose to repay some debt like mortgage debt or car loans. As a rule you cannot discharge secured debt and still keep the secured asset, although there are some exceptions for debt like second mortgages in some areas of the country. Many debtors prefer Chapter 7 bankruptcy because there are no payments to be made.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy involves repayment of part or all of your debt for up to five years. Some debts that you will keep may gain more favorable treatment under Chapter 13 bankruptcy. You may also be able to incorporate back payments on your home into a Chapter 13 repayment plan.

Keeping the home & keeping the cars?

Home- If you owe more than your home is worth or you simply cannot make the payments, it may be best to surrender. Most people who want to keep their home when filing bankruptcy do so.

Cars- If you owe more than your car is worth or cannot afford the car payments, your bankruptcy may be the best way to get relief from that debt. Many people who file bankruptcy do keep their car and continue the payments.

by Jeff Mathias, Des Moines, Iowa bankruptcy attorney, 4800 Mills Civic Parkway, West Des Moines, Iowa 50265. Tel: 515-261-7526, Toll Free 1-800-997-1395.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code

Iowa Chapter 7 Summary

Iowa Bankruptcy Lawyer Jeff Mathias

Here in Iowa the majority of clients file under Chapter 7 of the United States Bankruptcy Code. Chapter 7 provides for a complete discharge of credit card, medical and most other consumer debt. The major non-dischargeable debts are back taxes, student loans and child support. The other major consumer bankruptcy chapter is Chapter 13 repayment. Under Chapter 13 you repay normally for five years based on your “ability”.

Because your ability to repay is calculated after allowing limited expenses using the IRS Collection Guidelines the repayment amount can be fairly high. Most of the people who file Chapter 13 bankruptcy cannot make the payments, often due to unforeseen expenses. People who fail in a Chapter 13 have their case dismissed and are back at square one. Hence, unless there is a really good reason to file a Chapter 13 repayment (like better treatment of tax liabilities or fraud claims) you are normally better off to file a Chapter 7 from the start.

All debtors are required to take a Credit Counseling Class before filing bankruptcy in Iowa. Although the class can be taken over the telephone or in person, most people find it convenient to do online. You will be asked for your income and expense information and how much you owe. I have had the best luck with CCCS of Atlanta. Their site seems to be fairly easy to navigate and they can email your certificate to me directly if you ask them. You can have them email me at jeff@mathiaslaw.com. Normally they can have your certificate to you within a few days. If you do not have it the day you come to my office that is fine, I will get it soon enough. The cost of the certificate is $50 and they can debit the funds from your checking account if you wish. If you are filing a joint bankruptcy you will need two certificates.

Once you file your Chapter 7 the Automatic Stay in Section 362 of the bankruptcy code prevents creditors from starting or continuing collection action against you. So if your wages are being garnished, it must stop. Foreclosures stop. Collection calls and letters have to stop. Of course there are exceptions like child support, taxes, student loans and criminal prosecutions which can continue. In practice, your student loans will normally give you about six months to resume payments after filing bankruptcy.

All debtors are also required to complete the Financial Management Class after the bankruptcy is filed. CCCS of Atlanta is good on this certificate too. Again, they can email the certificate directly to my office.

Your Iowa Chapter 7 bankruptcy hearing usually is set around a month after your case is filed. Creditors can appear at the 341 Examination (hearing) but they normally do not attend. The bankruptcy trustee is an attorney appointed by the Bankruptcy Court to examine you at your hearing and determine if there are any assets available to be distributed to creditors. In most cases there are not. Our trustees in Des Moines are Tom Flynn, Don Neiman, Anita Shodeen and Charles Smith. I've had many cases with each of the trustees and know what their expectations are and how to gude your case smoothly through their office. At your hearing the bankruptcy trustee can examine you concerning the accuracy of your petition and any assets that may be available to administer. But the Court wants you to be able to continue your life so you are allowed many Iowa exemptions that allow you to keep most or all of your property. Your Iowa bankruptcy attorney can advise you before filing your bankruptcy what is and is not exempt.

Pre-bankruptcy planning is totally legal so with some forsight most debtors avoid loss of property. The most common exception is tax refunds. If you file late in the year and are going to receive more than $1,000 individually or $2,000 jointly on your taxes, it may be better to delay your bankruptcy filing until after those funds are received and spent. Just make sure you discuss how you are spending your refunds with your attorney before doing so to avoid preference payment issues. The most common preference problem is money paid to family within one year of filing bankruptcy, so you should avoid payments to family for past due debt within one year of filing your bankruptcy.

After your hearing, creditors have time to object to your bankruptcy discharge, but usually there are no objections. Normally your discharge letter will come about 9 weeks after your hearing, so the entire process takes about 3-4 months although in my office it is quicker because I do not make my clients fill out long packets just to get started. Instead, we will complete your entire petition during your first appointment so we can file fast. Most of my clients report that their Iowa bankruptcy was easier and less stressful than expected. Even though you have received your discharge letter it is important to follow through on any remaining trustee requests like copies of tax returns. If you do not, your discharge can be revoked.

After you file your Iowa Chapter 7 bankruptcy you may be surprised at how many offers of credit you receive. I encourage you to throw credit applications away and live on cash as much as possible. Although the bankruptcy remains on your credit for 10 years you can usually qualify for a good interest rate on a home mortgage about two years after your bankruptcy. Try to keep steady employment and avoid taking on new credit card debt or other installment debt like furniture loans. Having a good debt to income ratio is a big help when you try to purchase a home. See Moran Law's discussion of Credit After Bankruptcy.

Iowa Chapter 7 Bankruptcy Timeline:
1. Initial Appointment/Petition Preparation with Jeff.
2. Hearing- About 30 days later in Des Moines.
3. Discharge- About 9 weeks after hearing.

Iowa Bankruptcy Resources: Median Income Charts, Credit Counseling Providers, Financial Management Certificate Providers, Jeff's Iowa Bankruptcy Web Site.

Considering Iowa Bankruptcy due to foreclosure? Jeff's Iowa Foreclosure Law site includes more information on foreclosure law.

Questions? Ready to get Started?
Email Iowa Bankruptcy Attorney Jeff Mathias
or
Call Jeff: Des Moines 515-261-7526, Toll Free 1-800-997-1395. Also see Jeff's Iowa Bankruptcy Law and Iowa Chapter 7 Bankruptcy guide and Iowa Foreclosure Law information.

Des Moines Iowa Chapter 7 bankruptcy lawyer Jeff Mathias -Des Moines office located at 4800 Mills Civic Parkway, Suite 205, West Des Moines, Iowa 50265. Tel. 515-261-7526.

Iowa Bankruptcy Attorney Jeff Mathias

Stopping by Woods on a Snowy Evening

Whose woods these are I think I know,
His house is in the village though.
He will not see me stopping here,
To watch his woods fill up with snow.

My little horse must think it queer,
To stop without a farmhouse near,
Between the woods and frozen lake,
The darkest evening of the year.

He gives his harness bells a shake,
To ask if there is some mistake.
The only other sound's the sweep,
Of easy wind and downy flake.

The woods are lovely, dark and deep,
But I have promises to keep,
And miles to go before I sleep,
And miles to go before I sleep.

-- Robert Frost

*********************************

Cities served by Jeff Mathias Law Office in Iowa include Ames, Albia, Altoona, Ankeny, Atlantic and Bettendorf. Chapter 7 bankruptcy for Bloomfield, Bondurant, Boone, Burlington, Centerville and Chariton. We represent debtors in Clarinda, Clinton, Clive, Council Bluffs, Corning and Creston. Bankruptcy law cases filed for Cumming, Davenport, Des Moines, Dewitt and Fairfield. Iowa bankruptcy information for Fort Madison, Glenwood, Greenfield, Grimes, Grinnell and Guthrie Center, Iowa. Bankruptcy filing for Indianola, Iowa City, Jefferson, Johnston, Keokuk, Keosauqua and Knoxville. Filing bankruptcy for Leon, Marshalltown, Osceola, Pella, Pleasant Hill, Lamoni and Madrid. Bankrupcy attorney for Mitchellville, Montezuma, Mount Pleasant, Muscatine, Nevada and New Sharon. Bankrupcy lawyer for Newton, North Liberty, Norwalk, Ogden and Oskaloosa. Chapter 7 bankruptcy for Ottumwa, Panora, Red Oak, Shenandoah, Story City bankruptcy cases as well as Urbandale, Washington & Windsor Heights, Iowa.

Jeff Mathias Law Office
4800 Mills Civic Parkway, Suite 205
West Des Moines, Iowa 50265
515-261-7526
1-800-997-1395
Email Jeff Mathias
See Jeff's primary Iowa Bankruptcy website and Iowa Bankruptcy Guide for more.

Copyright 2007, Jeff Mathias Law Office , All Rights Reserved