What is bankruptcy?

Bankruptcy is a legal process that allows individuals or businesses that are unable to pay their debts to get a fresh start. In Iowa, individuals or businesses may file for bankruptcy in the United States Bankruptcy Court in the district they live in. Bankruptcy can provide debt relief, stop creditors from harassing you, and can help get rid of some of your debt. When someone in Iowa files for bankruptcy, it is either a Chapter 7 or a Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, all eligible debts are discharged or forgiven, meaning you no longer owe the amount due. In a Chapter 13 bankruptcy, payments to the creditors are reorganized and spread out over a period of time. When filing for bankruptcy in Iowa, you are typically required to provide documents regarding your financial situation, such as bank statements, tax returns, and lists of debts. You may also be required to attend credit counseling classes depending on the chapter of bankruptcy you are filing for. A meeting with creditors is also typically required. In Iowa, the court may dismiss your bankruptcy case if it finds that you have provided false information, have not followed court orders, or have failed to make payments to creditors. In addition, if you fail to file all required documents in a timely matter, your bankruptcy may be dismissed.

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What is bankruptcy?

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