Helping People in Des Moines and Central Iowa Find Debt Relief
Are creditors and bill collectors calling you all the time? Are you falling further and further behind on your home mortgage, credit card or other payments? At the Law Office of Tod J. Beavers, we help clients determine if bankruptcy is the right solution by guiding you through a series of questions you should ask yourself to help understand the bankruptcy process.
If you are struggling with debt, bankruptcy may be the right option for you. Contact the Law Office of Tod J. Beavers at 515-875-4812 for a free initial consultation.
There are options, and debtors do have rights. Here are a few of the most commonly asked questions our bankruptcy lawyer responds to regularly about the bankruptcy process:
Can I Keep My Home and Car?
Chapter 7 bankruptcy liquidates unsecured debt -- like credit cards and medical bills --- giving the debtor a fresh start. If you qualify for Chapter 7 bankruptcy, you may still be able to keep your home and car.
Does It Matter What My Income Is for Filing Bankruptcy?
Debtors with primarily consumer debts may not qualify for a Chapter 7 bankruptcy if they earn more than the state median income. The income calculation is based on gross average income for the past six months and does not include Social Security.
A Chapter 13 bankruptcy is for people who have a steady income but are continually behind with their bill payments. Under this option, a person reorganizes debt into smaller monthly payments with the intention that he or she will pay back a percentage of the debt over time (usually a period of three to five years). If the plan is completed, any remaining unsecured debt is discharged.
What Does It Cost to File for Bankruptcy?
You can expect to pay a filing fee to the court, an attorney fee and in some cases a fee to pull your credit report(s). The filing fee for a Chapter 7 filing is $306 and $281 for a Chapter 13. The attorney fee varies depending on the complexity of your case, your location and which bankruptcy chapter you qualify for. Please contact our office for a quote and remember if you don't have the money don't let that stop you from contacting our firm. We can recommend easy and legal pre-bankruptcy planning that you can do to reduce your monthly expenditures to save money for the bankruptcy fees. We also offer payment plans with $0 down.
What Will Happen to my Credit Score if I File for Bankruptcy?
Filing bankruptcy will impact your credit score. In fact, a bankruptcy filing will stay on your credit report for 10 years. The good news is if you take the right steps to rebuild your credit immediately after your filing, you can quickly rebuild your credit score. The Law Office of Tod J. Beavers currently enrolls each of our bankruptcy clients in an online credit education program through 720 Credit Score. The program provides you with tools and information to rebuild your score to 720 or better in twelve to twenty four months after your filing. The program normally costs $1000 but when your work with our firm, you will receive this program free of charge.
When Can I Buy a Home After I File Bankruptcy?
Sooner than you think, if you take the right steps immediately after you file to let the credit bureaus know that you've changed. Credit bureaus are most interested in your recent behavior. To help you take the right steps and understand what credit bureaus are looking for our law firm immediately enrolls you into 7 Steps To a 720 Credit Score. Many participants of the program have realized their dream of home ownership in as little as twelve to eighteen months after filing.
And there is more good news; in August of 2013 the Federal Housing Administration (FHA) loosened its restrictions on buying a home after a bankruptcy. The old rules required a three year waiting period before a borrower could qualify for an FHA - insured loan, but the new rules allow lenders to offer loans to people as early as one year after they declared bankruptcy. To be eligible for the guidelines borrowers must show that their bankruptcies occurred due to circumstances beyond their control, such as a job loss or substantial reductions in income due to the economic crisis. You must also demonstrate a full recovery which includes demonstrating improved credit.
How Long Will the Process Take and How Do I Begin?
From the time of filing to the receipt of a discharge in Chapter 7 the process generally takes about three to four months. Begin the process by organizing your income, assets, expenses and creditors, and contact us by phone or email to discuss if bankruptcy is the right option for you. Your initial consultation is free.
Law Office of Tod J. Beavers, P.C.
*Disclaimer: We are a debt-relief agency. We can help you file for Chapter 7 and Chapter 13 relief under the Bankruptcy Code.