Declaring bankruptcy is a huge event in your life, but it doesn’t have to be all bad. Bankruptcy is a method by which you can get a fresh start and still keep most of your possessions. The purpose of bankruptcy may have something to do with encouraging people to take risks. If you are going to declare bankruptcy in Iowa then you may find the following information to be of value of you. The object of Chapter 7 bankruptcy is basically to liquidate your possessions in order to pay off your debts. Thankfully due to the exemptions that each state has, you will find yourself giving up very few, if any, of your possessions.
The exemptions that you are allowed when you declare bankruptcy in Iowa are many. You may keep your homestead in town up to a half acre and homestead bought with pension benefits or the proceeds of sale. Also exempt are household furnishings and appliances up to $2,000, clothing up to $1,000, wedding rings, one shotgun, and either one musket or rifle; books, bibles, pictures, portraits, and paintings up to $1,000; health aids, musical instruments, tools of your trade, disposable farm earnings, cash on hand up to $100, pension benefits, unemployment benefits, group insurance benefits, and much more. Be certain to see your attorney for a more detailed list.
When you file for bankruptcy in Iowa, there are different steps to the process that you must go through the filing process. The first step is the median income requirement. In order to file for Chapter 7 bankruptcy, your median income must be below the median income for the entire state of Iowa. Step two is to gather all the needed documents and paperwork. The documents must include the information on your income, expenses, and property that you currently own. Your attorney will be able to help you gather this information. Step three is the filing of your petition; your attorney will usually fill this in for you using the information that you gathered for them.
When the aforementioned preliminary steps have been taken, you can finally attend your hearing. This hearing usually takes place about a month after you begin the process of bankruptcy in Iowa. The case is usually discharged within nine weeks of the hearing and the process is finally over. Altogether, the process does not take that long and isn’t as bad as you may have been led to believe.
If you are thinking of filing for bankruptcy, consult with an attorney in your area who can advise you on your situation.