Attendance within a credit-counseling program is the first step in filing a bankruptcy claim in any chapter. The United States Bankruptcy Act defines this as a stipulation. Failure to complete this state-approved course will result in an immediate denial of the bankruptcy petition.
Liquidation through Chapter 7
Under federal bankruptcy laws, consumers who qualify for chapter 13 may choose chapter 7 bankruptcy instead to settle their debts. This chapter allows the court to select properties and assets owned by the consumer in which to sell. All proceeds generated from these sales are distributed to his or her credits in an attempt to pay off all outstanding balances. A Bankruptcy Lawyer in Des Moines could acquire a reduction of these balances through negotiations.
The court appoints a trustee who takes possession of all deeds and titles associated with the properties. He or she places the property and assets on the market to sell. Notifications of these sales are listed within the local newspaper. However, some properties such as rental properties and residences may require assistance through a real estate firm for quick sale options.
As these properties and assets are sold the consumer receives exempted values based on the property type. This value is calculated by determining the amount of equity accumulated through repayment of loans and mortgages. For example, automobile loans provide an exemption based on the incurred equity.
Any equity value that is lower than the value of the loan is remitted back to the consumer as an exemption. To establish this value before a claim is filed, a Bankruptcy Lawyer in Des Moines can review the account balance and weigh it against the payments submitted since the acquisition of the account.
A Bankruptcy Lawyer in Des Moines can further determine whether married couples can double their exemptions based on the property type. For example, Polk County does allow a double exemption for these couples for their primary residence. This value cannot, however, exceed $130,000. Any consumers who wish to file a claim with their spouse to initiate these benefits should contact a Bankruptcy Lawyer in Des Moines to begin this process.
