Who can file for bankruptcy protection in Iowa?

Anyone can file bankruptcy in Iowa. As long as the person looking to file can demonstrate a need for relief under the code, they can file and ask for a discharge. The only requirements for filing are the chapter that the debtor qualifies for.

Qualifying for chapter 7 and 13

Chapter 7 requires that the petitioner be at, around or under the median income. Being a little over the median requires filling out the long form version of the means test to prove that there is no presumption of abuse. A presumption of abuse simply means that the petitioner really should be filing under chapter 13 and is trying to "force" their way into filing under 7. It's more desirable to file under chapter 7 as there is no pay back of debt requirement.

Chapter 13 is for those who cannot qualify for chapter 7. It takes 36-60 months before the petitioner can obtain a discharge due to the fact that there's a set payment every month to pay back debts. The monthly amount is determined by following the formula in the petition and will be agreed upon with the trustee at the initial meeting. Any remaining debt at the end of the time period will be completely discharged.

Hire a Lawyer for Bankruptcy

If bankruptcy is looking like an option, it's time to find a lawyer. Taking this step means it needs to be done right. Utilizing the services of an experienced bankruptcy attorney will assist in making the process go smoothly.