The bankruptcy code is written so people who make honest mistakes with their credit or incur extraordinarily high medical bills can get relief from the debt and rebuild their credit. While the law doesn’t restrict the amount of debt a person can discharge, there are restrictions that may exclude some people from filing and others from using Chapter 7 Bankruptcy in Cedar Rapids to discharge all of the unsecured debts without having to repay them.
To prevent abuse of the system, there are time limits on filing. One of the most important things someone who is in debt should know is that they cannot file Bankruptcy in Cedar Rapids within 180 days of having another bankruptcy dismissed. Anyone who filed but later didn’t come to a mandatory court hearing or voluntarily dismissed their case after a creditor asked the court to allow them to seize property have to wait approximately six months before they can file again.
An individual can file for Bankruptcy in Cedar Rapids whether they are employed or unemployed. However, there are income restrictions for Chapter 7 filings. Filers whose income exceeds the median for their state have to pass a means test in order to use Chapter 7. Failing the means test does not mean they cannot file for bankruptcy. They can still use Chapter 13, which allows filers to repay their debts over an extended period of time.
In order to file for Bankruptcy in Cedar Rapid under either Chapter 7 or Chapter 13, an individual must have received credit counseling within 180 days of filing. In some cases, the counselor determines that bankruptcy is not the best option and suggests an alternative. This debt management plan must be submitted to the court with the petition for bankruptcy protection. The judge may choose to follow the counselor’s recommendation or allow the petitioner to continue with their bankruptcy.
In addition to attorney fees, the court imposes fees for a bankruptcy filing. For filers who are unable to pay the fee in full, an installment plan may be available. Those whose income is less than 150 percent of the poverty level may have the filing fees waived.
