Bankruptcy

Burlington, Iowa Bankruptcy Attorneys

No one really wants to file a bankruptcy, but on occasion a person or entity is placed in a position when it may be necessary to consider this option. That is the time to consult with an experience bankruptcy attorney. Contact us and we will carefully explain your options and you will have the opportunity to make an informed choice as to the different course of action which you may have available to choose from. Bankruptcy can sometimes be very complicated, but your case will be carefully handled at Schulte, Hahn, Swanson, Engler & Gordon.

With some exceptions, bankruptcy law is primarily federal. The law may vary as applied in different areas of the United States. There is a major change in the bankruptcy law being implemented in October of 2005 which is potentially going to change the difficulty of filing, but not the result. With help, the objective of financial rehabilitation will be met.

Commercial and Consumer Bankruptcy

A bankruptcy involves consideration of three kinds of debts: priority, secured, and unsecured. Priority debts are the type of things that are usually hard to discharge. These are things such as fines, child support, wages and taxes. Secured debts are those which have collateral involved, such as a car loan or house loan. The application of State and Federal law must be carefully considered to determine the course of action that is available and most protective to the borrower. Finally, there are unsecured debts, which are usually going to be dischargeable. After these debts are considered, the next thing to be considered is the exemptions which may be available. Exemptions belong to individuals, not corporations. They make up the kinds of property that re are protected from creditors, unless a person has voluntarily made a pledge of the asset for a loan such as a car or home. These include such things as equity in a vehicle, home equity, household goods, wearing apparel, and retirement plans. The status of these assets may be enhanced prior to bankruptcy filing as a result of the careful planning which takes place.

Individuals who operate businesses and businesses themselves may file bankruptcy.

Individuals may file for relief under Chapter 7 or Chapter 13. Chapter 7 is called straight bankruptcy. It is open for a relatively short period of time and then is concluded. If a non-exempt 9unprotected) property exists that has a sufficient equity, those kinds of assets may be liquidated to convert them into cash. Thereafter, a trustee appointed in the case may make a distribution, which is usually rather nominal, to creditors, according to statutory directions. Chapter 13 is called a wage earner plan. During a period of time in which a “plan” is in place, the wage earner makes payments to a trustee, who then directs payments to creditors.

Chapter 11 is a very big kind of bankruptcy that almost exclusively involves large corporations or farming operations. Chapter 12 involves farming operations only. This firm does not concentrate in these areas.

The timing of filing of a bankruptcy is very critical due to the need to obtain immediate relief from creditors’ actions in certain circumstances. While the newer law seems to reduce the quickness of the responses available, relief will still be capable of being accomplished.

Conclusion

A consultation with an experienced bankruptcy attorney has the advantage that will allow someone to become informed about the status of the law and the application to that person or entity’s individual situation. Courses of action may be then decided upon with the decision maker being adequately informed of the ramifications of actions. However, if you are thinking about declaring bankruptcy, and you can still beat the October 2005 deadline, and it is in your best interests to contact us as soon as possible.

Our firm is located in Burlington, Iowa.  From our offices we represent clients all over Southeast Iowa, including Mount Pleasant, Keokuk, Fort Madison, Muscatine, and all communities in Des Moines, Henry, Lee, and Louisa Counties.

Schulte, Hahn, Swanson, Engler & Gordon
100 Valley St
Burlington, IA 52601
Phone:  (319) 753-6201
Fax:  (319) 754-8471
   E-mail

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