Iowa Chapter 13 Bankruptcy Can Work For You

by | May 6, 2013 | Uncategorized

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The loss of a job can be a devastating event in our lives, especially if we have not secured another position nor have enough saved to live on. No matter how the loss came about, if you are not prepared, it can have a snowball effect on you, your finances and your family. With no steady income to depend on, you are unable to make your mortgage payments, keep your utilities running, pay your creditors or put food on the table. Unfortunately, many jobs were lost due to the failing economy and a great many people have found themselves in serious debt, with limited options.

If you are fortunate enough to secure another job but find yourself still faced with unpaid bills, there are options you can consider. One option that is available to people that are suffering from debt and still want to keep their assets is to file an Iowa Chapter 13 Bankruptcy. Many people are scared of the word bankruptcy; they feel they will be marked for life. Actually, millions of people and companies file chapter 13 bankruptcy every day.

There is no need to worry about the finance company coming to repossess your car, the mortgage company foreclosing on your home or accruing interest on your back taxes. Your attorney will reorganize your debt by contacting your creditors on your behalf to arrange an agreement to pay off your overdue balance and have your agreement with them reinstated. This agreement will allow you to make monthly payments to your creditors, so you must be employed or have a steady monthly income to qualify. You must stick to the terms of your agreement by making your payments on time. If the agreement is broken, you will be released from the program and your debts will still be outstanding. This will open the door back up for repossessions, foreclosures and accrued interest on your tax debt.

Most people are released from the program after about three to five years of making steady payments. Once released, you will be free of debt, in good standing with your creditors, have regained your good name and secured peace of mind.

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