Q: Will bankruptcy destroy my credit?
A: No. What will destroy your credit is not paying on your bills when they are due. Iowa bankruptcy attorneys consider bankruptcy as a fresh start.
Many clients are in a better position after working with a bankruptcy attorney and filing for a Chapter 7 or Chapter 13 Bankruptcy for the following reasons:
Since Chapter 13 and Chapter 7 bankruptcies essentially wipes out your debt, credit scores usually increase after filing.
Filers can usually refinance their home within two years after declaring bankruptcy.
Once you’ve declared bankruptcy, applying to rent an apartment may also become easier since the Landlord is likely to check your credit report.
Q: Do I make too much money to file a Chapter 7 bankruptcy?
A: This is usually not the case. Most clients fall below the median income level that is required when filing a Chapter 7 bankruptcy. Even if you make more than the specified income level, each client's situation is unique and you may still qualify to file a Chapter 7 bankruptcy. In the free initial consultation, all of this will be considered so that you know your options before you invest one penny in Iowa bankruptcy attorney Lisa Pendroy’s services.
Q: Will I have to go to court?
A: Not quite, but you will need to attend a meeting of creditors. In this meeting, you will become acquainted with the trustee in your bankruptcy case, no matter Chapter 13 or Chapter 7. Trustees are very friendly, and should not be feared. Their job is to ask you simple questions, ones which Lisa will prepare you for in advance. Creditors may also show up to this meeting to ask you some simple questions, but just as before, there is no need to be scared; it is a completely simple process.
Q: Does my spouse have to file a bankruptcy with me?
Q: Will filing a bankruptcy stop my garnishment?
A: Yes, filing a bankruptcy creates an automatic stay and creditors cannot collect on any debt unless the creditor files a motion to lift the stay and the court orders that the stay be lifted. The same applies if your home in in foreclosure or your vehicle is on the verge of repossession.
If you have a bankruptcy question that is not answered in this section, contact Iowa attorney Lisa K. Pendroy today to schedule a free consultation.