Henry E. Nathanson Bankruptcy FAQ

A Chapter 7 petition can be filed by debtors who can show that they are insolvent by passing the government’s means test.  In Chapter 7, dischargeable unsecured debts can be wiped out without paying anyone anything.  A Chapter 13 petition can be filed by any debtor who does not qualify for Chapter 7 or who is behind on home mortgage payments and wants a chance to catch up.  A payment plan is filed with the petition.   A mortgage loan arrearage is an unsecured debt that can be paid off over the term of a plan.  All other unsecured debt receives a pro rata share of the monthly plan payments with the understanding that any balances remaining unpaid at the end of the plan term are wiped out.  Reach out to Henry Nathanson, bankruptcy attorney in Cedar Rapids, IA, today to schedule a free initial bankruptcy review.

A bankruptcy petition is filed in federal bankruptcy court.  The filing fee for a Chapter 7 petition is $338 and the filing fee for a Chapter 13 petition is $313.  The attorney fee will be discussed and agreed upon between Mr. Nathanson and the client before the petition is filed. Reach out to Henry Nathanson, bankruptcy attorney in Cedar Rapids, IA, today to schedule a free initial bankruptcy review.

Income tax can often be discharged in a Chapter 7 bankruptcy petition if a return for that year was filed.  If a return was filed on time, the tax debt can be wiped out if the bankruptcy petition is filed more than three years after the return was filed.  If the tax return was filed late, the debt can be wiped out if the bankruptcy petition is filed mor than two years after the return was filed. Reach out to Henry Nathanson, bankruptcy attorney in Cedar Rapids, IA, today to schedule a free initial bankruptcy review.

You cannot expect to be able to keep a credit card account open after filing a bankruptcy petition.  All credit card issuers find out immediately when a person files bankruptcy.  If the person has an account with a credit card issuer, the issuer will typically send the customer a letter and notify them that they are closing their account, even if there is no current balance owed on the account. Reach out to Henry Nathanson, bankruptcy attorney in Cedar Rapids, IA, today to schedule a free initial bankruptcy review.

Iowa statutory exemptions apply rather than federal exemptions in most cases.  The Iowa exemption statute is liberal and in most cases allows a debtor to keep everything that he or she needs to live day to day and also retirement accounts. Reach out to Henry Nathanson, bankruptcy attorney in Cedar Rapids, IA, today to schedule a free initial bankruptcy review.