Under certain circumstances a debtor may be able to modify a secured debt such as a vehicle or mobile home. The debtor may have the need for bankruptcy relief for future bills and wants to hold open the possibility for conversion or refilling [e.g. anticipated medical bills].

wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or has sufficient assets with which to repay most debts, but needs temporary relief from creditors in order to do so.

The basic difference between chapter 7 and chapter 13 is that under chapter 7 the debtor's nonexempt property (if any exists) is liquidated to pay as much as possible of the debtor's debts, while in most chapter 13 cases a portion of the debtor's future income is used to pay as much of the debtor's debts as is feasible considering the debtor's circumstances.

It depends on numerous factors. The amount paid to unsecured, nonpriority creditors ranges between 0% to100% with interest depending on the case.

Yes, after applying for obtaining court permission. The Debtor can keep the funds generated from the sale if the funds would have been exempt in a Chapter 7. If an asset is sold and the sale results in payment of a secured creditor that had been receiving money from the trustee, the Debtor may also seek to have the trustee payment lowered.

Most debtors file for a complete discharge under Chapter 7. Chapter 13 is the repayment chapter. Some debtors will file a Chapter 13 in an attempt to save their home, by incorporating past due payments into the 5 year repayment. But beware, most of these plans fail with the debtors converting to a Chapter 7 anyway. Unless you have a good reason or are not eligible, most debtors should file Iowa bankruptcy under Chapter 7.

Chapter 7 provides for a complete discharge. Under Chapter 13, you pay back part of your debt over 5 years. With Chapter 13, you can repay past due home or car loans over time. But beware; many clients delay the inevitable by filing a Chapter 13, making some payments and then failing and having to file a Chapter 7 anyway. Click here for more information.

Filing a chapter 13 bankruptcy has several advantages over a chapter 7 liquidation. A chapter 13 bankruptcy allows you to discharge a few more types of debts than does a chapter 7 bankruptcy. If you own an unincorporated business and your business is not a partnership, you can continue to own and operate the business under a chapter 13 plan. Under a chapter 7 liquidation, a bankruptcy court may order that your business or its assets be sold.

NO! Often people file bankruptcy before they are seriously delinquent on their monthly debts. If you can barely make the minimum payments required on your credit cards, or if it appears that you will not be able to make payments as they come due, it may be better for you to file bankruptcy rather than let your situation deteriorate. YES! A federal injunction (automatic stay) goes into effect immediately when a person files bankruptcy, which stops the foreclosure.

Bankruptcy is a legal proceeding in which people who cannot pay their debts can get a fresh financial start. The right to file for bankruptcy is provided by federal law and all bankruptcy cases are handled by in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. Most people filing bankruptcy will file under either chapter 7 or chapter 13.

Yes. A Chapter 13 discharge is greater, because it forgives more debt in exchange for pledging your income to the Court for at least three years. As long as the plan meets the tests above, the potentially nondischargeable debt could merely be an unsecured claim subject to the same treatment as all other unsecured claims.

Simply put, a Chapter 7 bankruptcy is where the debts are simply wiped away and the debtor receives a fresh start. This is much harder to receive now that the bankruptcy laws changed in late 2005, but it is still possible for some filers. A Chapter 13 bankruptcy is a repayment plan, which is determined based on your disposable income each month.

Obviously, everyone wants a bargain. But in Law, particularly in specialty areas of Law, such as Bankruptcy, you usually get what you pay for.