How Our Des Moines Bankruptcy Law Firm Guides Clients Through the Bankruptcy Process
Completing complex forms is only a small step in the detailed process of filing for bankruptcy. If done correctly, bankruptcy can lead to a fresh financial start for individuals and businesses—but errors can stop the process or result in denials that do not provide the new beginning needed for individuals or businesses. Des Moines bankruptcy law firms are essential in ensuring the process provides the relief you need.
Selecting the right type of bankruptcy is a critical first step
The most common forms of bankruptcy include the following:
- Chapter 7 bankruptcy: Individuals and businesses in Des Moines qualify for Chapter 7 bankruptcy when they have low income and few resources. Also known as liquidation bankruptcy, it involves selling some assets to repay as much debt as possible before negotiating with creditors to forgive the balance of the loans.
- Chapter 13 bankruptcy: Individuals in Des Moines qualify for Chapter 13 bankruptcy—also known as wage earners bankruptcy—when they have sufficient income to repay all debt after renegotiating the terms of the debt with each creditor.
- Chapter 11 bankruptcy: Businesses in Des Moines qualify for Chapter 11 bankruptcy—or restructuring bankruptcy—when the renegotiation of all debt allows them to repay it in full as the business continues to operate.
Bankruptcy law firms in Des Moines understand the complexities of determining which form of bankruptcy is right for each individual situation and can help ensure that you qualify under the requirements of the law. An experienced Des Moines bankruptcy lawyer can also help you obtain the reputable credit counseling required under the recent changes in bankruptcy law.
The courts require detailed financial information before putting your filing on the docket
The application process involves submitting information about all sources of income and a detailed accounting of all debt, including a list of creditors and how much money is owed to each. Omission of any outstanding debt excludes it from the bankruptcy filing.
It is also critical to understand that not all debt can be resolved through bankruptcy. Items such as collateralized loans, taxes, student debt, alimony, and child support must be repaid in full.
At Hope Law Firm, PLC, we work closely with clients to ensure all forms are complete and accurate before submitting them to the courts.
The court process
The court process involves assigning a trustee to oversee negotiations between the debtor and all creditors. When liquidation is the ultimate goal, the process involves selling all assets, except those excluded by law, and using the proceeds to fund partial repayment of creditors based on legal priority and negotiations. For bankruptcy involving full debt repayment, new terms must be negotiated with each creditor—possibly with lower interest rates or by extending the repayment period, generally over a five-year period.
While the trustee must approve all agreements, our firm participates by providing skilled representation for our clients in the negotiations.
Emerging from bankruptcy
Once all creditors have received full settlement, the bankruptcy is complete, but the debtor is left with a reduced credit rating and a financial reputation that must be repaired over time. At Hope Law Firm, PLC, we do not consider our job to be complete until we provide the advice and resources needed to help our clients regain their financial footing.
Calling our bankruptcy law firm in Des Moines is the first step toward financial freedom
You need a firm to take all appropriate legal action to protect your rights and ensure all details are addressed throughout the complex bankruptcy process. We know how to work with you to achieve your goals. Contact Hope Law Firm, PLC to discuss your specific situation.
