If you’re considering filing bankruptcy in Des Moines, IA, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Filing for bankruptcy in Des Moines, Iowa, or anywhere in the United States, is a complex legal process that involves specific eligibility requirements and considerations. Bankruptcy is a legal option for individuals and businesses struggling with overwhelming debt, but not everyone qualifies for it.

1. Residency and Venue: To file for bankruptcy in Des Moines, Iowa, you must meet certain residency requirements. Generally, you need to have lived in Iowa for at least 180 days before filing. Additionally, your bankruptcy case should be filed in the appropriate venue, which is typically the federal bankruptcy court serving your area.
2. Credit Counseling: Before you can file for bankruptcy, you are required to complete credit counseling from an approved agency. This counseling session is designed to help you evaluate your financial situation, explore alternative solutions to bankruptcy, and provide budgeting advice. Once you complete this requirement, you’ll receive a certificate of completion, which is necessary to proceed with your bankruptcy filing.
3. Means Test: One of the critical eligibility factors for individuals looking to file bankruptcy in Des Moines is the means test. This test is used to determine whether you qualify for Chapter 7 bankruptcy or if you should pursue Chapter 13 bankruptcy instead.

• Chapter 7 Bankruptcy: To qualify for Chapter 7, your income must be below the median income for a household of your size in Iowa. If your income is above this threshold, you may still be eligible if you pass the second part of the means test, which considers your disposable income after deducting certain allowed expenses.
• Chapter 13 Bankruptcy: If your income exceeds the Chapter 7 threshold or you have the ability to repay some of your debts, Chapter 13 may be a better option. Chapter 13 involves creating a repayment plan to pay off a portion of your debts over three to five years.

4. Prior Bankruptcy Discharge: If you have previously filed for bankruptcy and received a discharge, there are restrictions on how soon you can file for bankruptcy again. For example, if you previously received a Chapter 7 discharge, you must wait eight years from the date of the prior filing to file for Chapter 7 again. If you received a Chapter 13 discharge, you must wait four years to file for Chapter 7 or two years to file for another Chapter 13.
5. Completing Required Financial Management Course: After filing for bankruptcy, you must complete a financial management course from an approved provider. This course is meant to help you develop better financial skills and avoid future financial difficulties.
6. Types of Bankruptcy: In Des Moines, Iowa, individuals typically file for either Chapter 7 or Chapter 13 bankruptcy.

• Chapter 7 Bankruptcy: Also known as “liquidation bankruptcy,” Chapter 7 allows you to discharge most of your unsecured debts, such as credit card debt and medical bills. However, some assets may be sold to pay off creditors. To qualify, you must meet the means test requirements mentioned earlier.
• Chapter 13 Bankruptcy: This is often referred to as “reorganization bankruptcy.” In Chapter 13, you create a repayment plan to pay back some or all of your debts over a period of three to five years. This can be a good option if you have a regular income but need relief from overwhelming debt.

The qualifications for filing bankruptcy in Des Moines, Iowa, are influenced by residency requirements, credit counseling, the means test, previous bankruptcy discharges, and the choice between Chapter 7 and Chapter 13 bankruptcy. It is crucial to consult with a qualified bankruptcy attorney in Des Moines to assess your eligibility and determine the best course of action for your specific financial situation. Bankruptcy is a complex legal process, and professional guidance can help you navigate it successfully and make informed decisions about your financial future.

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Do You Need a Lawyer to File For Bankruptcy in Des Moines, IA?

Filing for bankruptcy in Des Moines, Iowa, is a legal process that can be complex and overwhelming, and whether you need a lawyer to navigate this process depends on your individual circumstances and the type of bankruptcy you plan to file. While it is not a strict requirement to have an attorney, there are several reasons why it is highly advisable to seek legal representation when filing for bankruptcy.

1. Understanding Your Options: Bankruptcy law is intricate, and there are different chapters of bankruptcy available, such as Chapter 7 and Chapter 13, each with its own eligibility requirements and implications. A qualified bankruptcy attorney can assess your financial situation, discuss your goals, and help you choose the most appropriate chapter of bankruptcy for your needs. They can explain the advantages and disadvantages of each chapter, ensuring that you make an informed decision.
2. Complex Paperwork and Documentation: Filing for bankruptcy involves extensive paperwork, including financial statements, income documentation, expense records, and various forms required by the court. A bankruptcy attorney has experience with these documents and can ensure they are completed accurately and submitted on time. Mistakes or omissions in your bankruptcy paperwork can result in delays, dismissals, or even legal consequences.
3. Protection from Creditors: Once you file for bankruptcy, an automatic stay goes into effect, which prohibits creditors from pursuing collection actions against you, such as lawsuits, wage garnishments, or foreclosure proceedings. An attorney can help you understand your rights under the automatic stay and ensure that creditors comply with the law. If a creditor violates the stay, your attorney can take appropriate legal action to protect your interests.
4. Asset Protection: In Chapter 7 bankruptcy, certain assets may be subject to liquidation to pay off creditors. An experienced attorney can help you understand the exemptions available under Iowa law and federal bankruptcy law, which may allow you to protect essential assets like your home, car, and personal belongings. They can also help you navigate the process to maximize your asset protection.
5. Negotiating with Creditors: In Chapter 13 bankruptcy, you’ll need to create a repayment plan that outlines how you will pay back a portion of your debts over a specified period. Negotiating with creditors to obtain their approval for this plan can be challenging. A skilled attorney can negotiate on your behalf, increasing the likelihood of reaching agreeable terms and securing court approval for your plan.
6. Legal Expertise: Bankruptcy law is constantly evolving, and it can be challenging for individuals without legal training to stay updated on the latest changes and court rulings. An attorney specializes in bankruptcy law and can apply their expertise to your case, ensuring that you benefit from the most current legal standards and strategies.
7. Avoiding Costly Mistakes: Without an attorney, you risk making costly errors during the bankruptcy process. These errors can result in the dismissal of your case, the loss of assets you could have protected, or the denial of debt discharge. Hiring an attorney can help you avoid these pitfalls and ensure a smoother bankruptcy process.

While it is not mandatory to hire a lawyer to file for bankruptcy in Des Moines, Iowa, doing so is highly recommended for most individuals. Bankruptcy attorneys provide valuable guidance, legal expertise, and protection throughout the bankruptcy process, helping you make informed decisions and increasing your chances of a successful outcome. Bankruptcy is a significant financial step, and having an experienced attorney by your side can provide peace of mind and ensure that you navigate the process effectively.

Cost to File Chapter 7 Bankruptcy in Des Moines, IA

The cost to file Chapter 7 bankruptcy in Des Moines, Iowa, includes several fees and expenses, but it’s important to note that the fees can vary depending on your specific circumstances and the complexity of your case.

Here is a breakdown of the primary costs associated with filing Chapter 7 bankruptcy:

1. Filing Fee: The primary fee for filing a Chapter 7 bankruptcy case is the filing fee, which is set by the federal government. However, it’s essential to check with the U.S. Bankruptcy Court in Des Moines or consult with a bankruptcy attorney for the most up-to-date fee information, as fees can change over time.
2. Credit Counseling and Financial Management Courses: Before and after filing for Chapter 7 bankruptcy, you are required to complete credit counseling and financial management courses from approved agencies. These courses typically cost around $26 to $57 each, but fees can vary. Ensure that you choose a government-approved provider to meet this requirement.
3. Attorney Fees: While it is possible to file for Chapter 7 bankruptcy without an attorney (pro se), it’s highly advisable to hire an experienced bankruptcy attorney to guide you through the process. Attorney fees can vary significantly based on your location and the complexity of your case. On average, Chapter 7 bankruptcy attorney fees in Des Moines, Iowa, can range from $1,180 to $2,800 or more. Attorneys often offer payment plans to make their services more accessible.
4. Credit Report and Miscellaneous Costs: You may need to obtain a credit report to ensure that you have a comprehensive list of your debts and creditors. While some credit reporting agencies offer free reports annually, there may be a small fee for additional reports or services related to credit reporting.
5. Bankruptcy Trustee’s Fee: In a Chapter 7 bankruptcy case, a bankruptcy trustee is appointed to oversee your case. The trustee’s fee is typically paid from the proceeds generated by selling any non-exempt assets. However, if there are no assets to liquidate, there may be no trustee fee.
6. Other Costs: Depending on your specific circumstances, there may be other costs associated with your Chapter 7 bankruptcy, such as notary fees, postage, or costs related to attending mandatory court hearings or meetings of creditors.

Keep in mind that bankruptcy laws and fees can change, so it’s crucial to consult with a knowledgeable bankruptcy attorney in Des Moines or contact the U.S. Bankruptcy Court for the most current information regarding the costs associated with filing Chapter 7 bankruptcy in your area. An attorney can also help you assess your financial situation and explore the best options for managing the costs of your bankruptcy filing.

Cost to File Chapter 11 Bankruptcy in Des Moines, IA

Filing for Chapter 11 bankruptcy in Des Moines, Iowa, is a complex and costly process, primarily designed for businesses and individuals with substantial assets and debts. The cost to file Chapter 11 bankruptcy can vary significantly based on the complexity of your financial situation and the scope of your bankruptcy case. Here’s a breakdown of the primary costs associated with filing Chapter 11 bankruptcy:

1. Filing Fee The filing fee for a Chapter 11 bankruptcy case is $1,980. This fee is set by the federal government and is subject to change, so it’s essential to check with the U.S. Bankruptcy Court in Des Moines or consult with a bankruptcy attorney for the most up-to-date fee information.
2. Attorney Fees: Chapter 11 bankruptcy cases are exceptionally complex and typically require the expertise of an experienced bankruptcy attorney. Attorney fees for Chapter 11 cases can vary widely based on factors such as the complexity of your financial affairs, the size of your business, and the level of creditor opposition. In Des Moines, Iowa, attorney fees for Chapter 11 bankruptcy often start at several thousand dollars and can quickly escalate for more complex cases. It’s essential to consult with a bankruptcy attorney to get a precise estimate based on your specific situation.
3. U.S. Trustee Fees: In a Chapter 11 bankruptcy case, the U.S. Trustee’s office assesses quarterly fees based on the debtor’s disbursements. These fees are used to cover the administrative costs of overseeing the bankruptcy case. The exact amount of these fees will depend on the disbursements made during the course of your bankruptcy.
4. Other Professional Fees: Depending on the complexity of your Chapter 11 case, you may need to hire other professionals, such as financial advisors, appraisers, or accountants, to assist with the bankruptcy process. Their fees can add to the overall cost of your bankruptcy case.
5. Administrative Costs: Chapter 11 bankruptcy cases involve administrative expenses, including costs related to court filings, notices, mailings, and any necessary legal research. These costs can accumulate over the course of the bankruptcy process.
6. Debtor-in-Possession Financing: In some Chapter 11 cases, debtors may need to secure financing to fund their operations during the bankruptcy process. These financing arrangements can come with interest and fees, which can add to the overall cost of the bankruptcy.

Furthermore, given the complexity of Chapter 11 bankruptcy, it’s important to have legal representation to navigate the process successfully, negotiate with creditors, and develop a reorganization plan that has a reasonable chance of approval by the bankruptcy court. The cost of legal representation is a significant factor to consider when deciding to file for Chapter 11 bankruptcy.

Cost to File Chapter 13 Bankruptcy in Des Moines, IA

Filing for Chapter 13 bankruptcy in Des Moines, Iowa, involves several costs and fees, which can vary depending on your specific financial situation and the complexity of your case. Chapter 13 bankruptcy is often chosen by individuals with a regular income who want to reorganize their debts and create a manageable repayment plan. Here’s a breakdown of the primary costs associated with filing Chapter 13 bankruptcy:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case is $375. This fee is set by the federal government and is subject to change, so it’s essential to check with the U.S. Bankruptcy Court in Des Moines or consult with a bankruptcy attorney for the most up-to-date fee information.
2. Attorney Fees: Hiring an experienced bankruptcy attorney is highly advisable when filing for Chapter 13 bankruptcy. Attorney fees for Chapter 13 cases can vary depending on the complexity of your financial situation and the extent of legal assistance you require. On average, attorney fees for Chapter 13 bankruptcy in Des Moines, Iowa, can range from $2,900 to $5,920 or more. Attorneys often offer payment plans to make their services more accessible.
3. Credit Counseling and Financial Management Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete credit counseling and financial management courses from approved agencies. These courses typically cost around $25 to $58 each, but fees can vary. Ensure that you choose a government-approved provider to meet this requirement.
4. Trustee’s Fees: In a Chapter 13 bankruptcy case, a bankruptcy trustee is appointed to oversee your repayment plan and collect payments from you to distribute to creditors. The trustee’s fees are typically a percentage of the payments you make to creditors through your plan. These fees are set by the U.S. Trustee’s office.
5. Miscellaneous Costs: There may be other costs associated with your Chapter 13 bankruptcy, such as notary fees, postage, or expenses related to attending mandatory court hearings or meetings of creditors.

Before proceeding with Chapter 13 bankruptcy, it’s crucial to consult with a knowledgeable bankruptcy attorney in Des Moines. An attorney can assess your financial situation, provide you with a precise estimate of the potential costs, and help you understand the benefits and responsibilities associated with this type of bankruptcy. They will also guide you through the process, including developing a repayment plan that aligns with your income and expenses while ensuring compliance with all legal requirements.

Reliable Bankruptcy Attorneys in Des Moines, IA

Below is a list of reputable bankruptcy attorneys in Des Moines, IA. They can help you with both personal and business bankruptcy information.

Nancy L. Thompson Law Office, P.C.
309 Court Ave #217, Des Moines, IA 50309, United States

Miller Law Firm
974 73rd St STE 15, West Des Moines, IA 50265, United States

Marks Law Firm
4225 University Ave, Des Moines, IA 50311, United States

James H Cossitt, Of Counsel, Gribble, Boles, Stewart & Witosky
2015 Grand Ave Suite 200, Des Moines, IA 50312, United States

Mathias Law Offices
4800 Mills Civic Pkwy #218, West Des Moines, IA 50265, United States

Des Moines, IA Zip Codes We Proudly Serve:

50009, 50047, 50211, 50309, 50310, 50311, 50312, 50313, 50314, 50315, 50316, 50317, 50319, 50320, 50321, 50322, 50327

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