Many people who find themselves struggling with debt can qualify for relief under Iowa bankruptcy laws. Individuals may find a solution to their problems with either a Chapter 7 or Chapter 13 bankruptcy. Des Moines legal firm Marks Law specializes in both forms of bankruptcy.
To gain a better understanding of each type of bankruptcy, let’s begin by looking at what they have in common. Both types of bankruptcy:
- Will stop garnishments and judgments.
- Will NOT eliminate student loans, child support obligations or court fines.
- Can help with tax debt (speak with an Iowa bankruptcy attorney for details).
- Allow you to keep your home or car as long as you continue to make payments.
- Have exemptions that allow most people to retain all of their assets.
There are differences, however.
To gain a better understanding of the differences between each type of bankruptcy, let’s look at the primary difference between them.
If a person has the ability to pay to their creditors some or all of their debt then the person probably qualifies for a Chapter 13 bankruptcy.In Iowa, if a person doesn’t have the ability to pay their creditors anything then they probably qualify for a Chapter 7 bankruptcy.
This rule is not set in stone but seems to be a solid guideline for people considering bankruptcy.In addition to the issue of qualifying for bankruptcy here are a few other differences:
You will want to discuss your specific situation with an attorney to determine which type of bankruptcy is right for you.
Call or contact Marks Law Firm to set up a free, no obligation consultation. We’ll listen to your story, discuss your situation and help you to determine how you can best deal with your debt situation.