It is not uncommon for an individual’s personal finances to spiral out of control to the point where it becomes unmanageable. Many people seek to work out agreements with their creditors but in some extreme cases, even these measures aren’t enough to satisfy the needs of your creditors for repayment. It may be necessary to consider Bankruptcy Des Moines. However, what many people don’t realize is that there are different filings for bankruptcy. For most individuals who are having trouble with their personal finances, a chapter 7 bankruptcy is required.
In this Bankruptcy Des Moines process, your debts are turned over to a court-appointed trustee and most of your personal debts are canceled by the courts. You may be required to liquidate certain assets in order to repay your creditors but you won’t have to be concerned about selling your home or selling your vehicles in order to repay any outstanding debts.
The process for chapter 7 Bankruptcy Des Moines usually takes around 3 to 6 months and the initial filing is going to be about $300. What is also beneficial to people considering Chapter 7 bankruptcy is what is known as an Order of Stay. This order which is created by the bankruptcy court is meant to stop creditors from calling you looking for repayment of a debt. Once the bankruptcy petition has been filed with the court, the court will automatically issue the Order of Stay.
If you are still contacted by creditors, it will be a simple matter of referring these creditors back to your bankruptcy attorney. Typically, once creditors realize you are in the process of filing for bankruptcy, phone calls and correspondence for repayment of debts will stop. If not, usually a phone conversation with your attorney will bring about the cessation of these attempts to collect on a debt.
In addition to the legal process of Bankruptcy Des Moines, you will also be required to complete a credit counseling course. This is not only mandated by the court but it is also a good idea in order for you to get the counseling you need to help you to avoid getting in this financial situation in the future.