The Bankruptcy Process in Iowa
Most bankruptcies in Iowa are relatively straight forward. Our job is to help make it as easy as possible for you to get through bankruptcy without complications. Nancy L. Thompson Law Office PC begins by having clients complete a detailed questionnaire about property, debts, income and expenses. The questionnaire can be completed at home and returned to our office when you're finished. If you need help understanding the questions be sure to email or call us so we can answer your questions. We'll also ask you to provide us with several documents such as paystubs, tax returns, property tax assessments, and credit reports. Once all the information has been returned, a bankruptcy petition and "schedules" will be prepared using the information you've given us. We then have a meeting with clients to review the documents and make sure all property and debts are listed and clients understand the purpose and consequences of their bankruptcy. After clients sign the documents they'll be filed with the U.S. Bankruptcy Court. If the bankruptcy is filed under Chapter 12 or 13, a "Plan" is also filed that shows how the debtors intend to repay the debts and how much will be repaid. In most Chapter 12 or 13 cases only a small percentage of the debt is repaid -- just the amount that debtors can afford to repay. Debtors also have to complete a 60-90 minute credit counseling briefing before filing. Clients can complete the credit counseling over the phone or Internet. About one month following the filing of the bankruptcy schedules, debtors meet with a trustee appointed to oversee the bankruptcy. Creditors are also allowed to attend these meetings but rarely do. At the meeting, the trustee will ask several questions about the debtors' schedules to determine whether there is any property that's not exempt and therefore available to be used to pay creditors. In Iowa, this meeting usually doesn't take more than a few minutes.
After the trustee meeting is over, in a Chapter 7 bankruptcy, debtors must wait about two months before an Order of Discharge is entered by the Court. Debtors never have to appear before a judge unless there are disputes with a creditor or the trustee. In a Chapter 12 or 13 bankruptcy, creditors and the trustee are also given an opportunity to object to the debtors' proposed Plan. If any objections are made, those must be resolved before the Plan can be confirmed by the Court.
Debtors must also complete a debtor education course after the bankruptcy has been filed but before a discharge. Again, that one session course can be completed by phone or the Internet. We'll give you more information about this course when we meet.
From the time of filing to the Order of Discharge a Chapter 7 bankruptcy generally takes about 3-4 months. Obtaining a Chapter 12 or 13 confirmation of the Plan often takes about the same amount of time but may take longer if there are objections to the Plan.
