Is it better to file a Chapter 7 or 13? Most people prefer Chapter 7 bankruptcy because, unlike Chapter 13 bankruptcy, it doesn’t require you to repay a portion of your debt to creditors. In Chapter 13 bankruptcy, you must pay all of your disposable income—the amount remaining after allowed monthly expenses—to your creditors for three to five years.
How do I declare bankruptcy in Iowa?
- Collect Your Iowa Bankruptcy Documents. To file bankruptcy, you need to submit a lot of paperwork.
- Take a Credit Counseling Course.
- Complete the Bankruptcy Forms.
- Get Your Filing Fee.
- Print Your Bankruptcy Forms.
- File Your Forms With the Iowa Bankruptcy Courts.
- Mail Documents to Your Trustee.
- Take a Debtor Education Course.
Why file bankruptcy Chapter 7? Chapter 7 bankruptcy is a powerful legal tool in the United States that allows you to totally erase many debts, including credit card debt, medical debt, car loans, and payday loans.
Will I lose my tax return in Chapter 7? Your tax refund will be part of your bankruptcy estate. A tax refund based on the income you earned before filing for bankruptcy goes to the estate. Note: Most trustees are concerned about tax refunds owed to the filer after the tax year ends, not before. You keep the full refund.