Iowa requires any who wishes to file for bankruptcy to adhere to the restrictions stipulated in their case. This includes refraining from opening any new lines of credit. The consumers are also required to attend credit-counseling programs before they file their claim. If you wish to file a claim you should schedule a consultation with a bankruptcy law firm Cedar Rapids promptly. Bankruptcy Advantages Filing a claim for bankruptcy can help a consumer avoid foreclosure. With chapter 7, the automatic stay that ceases all legal actions against the consumer lasts up to six months, which allows the consumer to catch up their mortgage payments. However, if the consumer chooses chapter 13, the automatic stay could last up to five years.
This prevents the consumer from losing their home during this time frame. A bankruptcy law firm Cedar Rapids can provide you details about further benefits of an automatic stay. Also, the exemptions allowed in Iowa protect the interests of the consumer. For instance, if the consumer files for the bankruptcy during tax season, they don’t have to worry that the court will take their income tax return to settle debts. Equally, any tax payments required of the consumer could be placed within the bankruptcy case which could delay these requirements throughout the duration of their case. Married couples who file bankruptcy jointly receive double exemptions. When the consumers include their primary residence into the bankruptcy case, the equity built up into the property is further protected by the additional exemptions.
This could prevent the court from determining that the property should be sold to settle debts. How to Qualify for Bankruptcy Consumer should visit a bankruptcy law firm Cedar Rapids to undergo a means test. According to the guidelines, the consumer’s income should be greater than the county’s median to qualify for chapter 13. Any consumer whose income is below the county average can only file a chapter 7. The median income for Linn County is $46,206 for individuals and $56,494 for families. Bankruptcy provides a wealth of benefits for consumers. Joint claimants receive double the benefits. If you wish to file a claim you should contact a bankruptcy law firm Cedar Rapids to schedule a consultation.
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