It is hard to imagine, but there are many people in the US that cannot afford to file for bankruptcy; they are that broke and in debt. On average, the legal fees associated with a filing for a chapter 7 in Cedar Rapids is about $1,500.
Prior to 2005, filing for chapter 7 bankruptcy protection was much simpler and much less expensive. Chapter 7 bankruptcy allows for all your non-exempt assets to be given to a trustee who then sells them and apportions the money among the creditors. When this process is completed, the individual is totally debt free and able to re-build his life. Although nothing has changed with the concept, in 2005 Federal law was changed that forced people to take a means test and if their income stream was about the state norm, they were not eligible for chapter 7.
The revised laws force the debtor to take debt counseling prior to filing for bankruptcy. All of these things take time and cost money that often the debtor simply does not have. If the debtor’s income is above that allowed by law, his other option is chapter 13, which allows him to keep his assets, but he must make a debt repayment plan which is court approved, and make every effort to repay all his debts.
Filing for bankruptcy has never been easy:
Even prior to 2005, filing for a Chapter 7 Cedar Rapids wasn’t easy, today, it is not only more difficult to file, the needs have never been greater. There are now many thousands of people in the country who cannot afford to pay their bills and get out of serious debt. They may have lost their jobs or were faced with a huge medical bill with inadequate insurance. These people have a legitimate reason to seek debt relief, but they simply don’t have the money to seek legal assistance.
You can file for chapter 7 in Cedar Rapids without an attorney, but that is not recommended. Bankruptcy law is complex and the uninitiated can make mistakes that cost dearly, perhaps even being dismissed by the court.
In preparation for filing for bankruptcy, gather all your paperwork together. You are going to have to prepare a complete list of all your assets, all your debts and any litigation that you may currently be involved in, such as a collection case. The lawyer will need all of this and you are cautioned about transferring ownership of your assets prior to seeing a lawyer. Many assets are protected by bankruptcy law and if not declared can result in your case being thrown out of court.
You are advised to seek the help of a pro-bono attorney. Your legal aid society should be able to connect you with a lawyer, who will provide help for free or for minimal cost.
If you need to file for chapter 7 in Cedar Rapids there is no better attorney than Kevin Ahrenholz. He offers a $200 discount for those wishing to file for chapter 7, making the total fee affordable.