Bankruptcy protection has an interesting history, indicated Kevin Ahrenholz, an Iowa bankruptcy attorney. It came about to protect consumers from ruthless creditors in the Old World. Unfortunately, creditors in the 21st century do not seem to be that much different. Nowadays, the bankruptcy laws in place are covered mainly under federal law, but state bankruptcy laws act to supplement the details. In other words, when someone files for bankruptcy, they are filing in federal bankruptcy court.
Those in debt may well be the salt of the earth and work hard, do their best to help others and can always be relied upon. On the other hand, there are those who would rob from anyone to make a quick dollar and they too may be in debt. Anyone, no matter who they are, may face going bankrupt. Filing is not considered to be a sign of financial incompetence, laziness or dishonesty. It just is what it is.
It may come about as the result of foreclosure, bad timing, a divorce, a death or health issues. These days bankruptcy is merely looked at as being a tool to help resolve a bad situation between a creditor and a debtor added Ahrenholz. They may file on their own or they may get pushed into bankruptcy. Typically, most people declare bankruptcy under their own steam, and thus retain a certain amount of control over the eventual outcome and resolution.
Even though people do retain some control over what they keep, depending on what Chapter their filing falls into, this is not something that should be done without the expert assistance of an Iowa bankruptcy attorney. Bankruptcy laws are complex and convoluted and the whole process is tricky, meaning some laws apply and some do not.
If a debtor does not what applies and tries this process on their own, they run the risk of being dismissed. Always discuss a bankruptcy situation with a seasoned bankruptcy attorney and find out what needs to be done, how to go about it and what the expected outcome will be. The first consultation is free and the advice may save a lot of grief later.
Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact an Iowa bankruptcy attorney, Iowa bankruptcy lawyer, or set up an appointment, visit http://www.iowachapter7.com or call 1.877.888.1766.
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