Bankruptcy Calculations and Proceedings Call for an Experienced Attorney

Law Firm Newswire




Des Moines, IA (Law Firm Newswire) September 16, 2011 – If bankruptcy came with a manual, it might not be so hard to slog through. Most bankruptcies need the assistance of a competent Iowa bankruptcy lawyer.

“There are many good reasons to file for bankruptcy, and in most cases, the debtor is choosing to file because they feel they have no other way out from under a crushing debt load,” said Iowa bankruptcy lawyer Kevin Ahrenholz. “But then again, there are some people who think they can just file without meeting the criteria. While it is your ‘right’ to file, if you don’t meet the U.S. Bankruptcy Court guidelines you may not be considered. In other words, you really have to ‘be’ bankrupt and not just want to be to avoid paying your debts.”

People can be odd creatures at times and more so when it comes to the prospect of being able to cancel their debt load and move forward into the future debt free. This is when temptation kicks in and people begin to think of ways to cut corners, fudge their applications a bit, or not reveal all of their assets. “Beware,” said Ahrenholz. “If you do something like that, you may have your case dismissed by a bankruptcy judge if you can’t follow the guidelines as enumerated in bankruptcy law.”

These days, bankruptcy is pretty much a black and white process, meaning a person either is or is not financially bankrupt. “Which brings up an interesting question,” Ahrenholz added. “Just what is legal financial bankruptcy? It’s defined as your current sustainable income not being enough to pay all of your living expenses, pay interest on loans and pay down the principal on the loans. Five years is the max a bankruptcy court allows someone to work their way out of bankruptcy protection.”

If a person earns a decent income, is not behind on bills and has not run up their credit cards to the absolute hilt, they are not really “bankrupt” in the true sense of the word. In fact, they may still be able to pay down their principal over five years. “That aside, can these people file for bankruptcy? Technically, yes, they can file, but they may not meet court guidelines,” Ahrenholz pointed out.

Bankruptcy courts exist to protect the debtor and creditor by ensuring that the bankruptcy process lets “honest” people work their way out of a financial mess or start over again. “While some people may feel like starting over financially, they may not realize that it means satisfying court demands to meet their financial obligations if they can,” remarked Ahrenholz. “In other words, think twice about your motivation for filing, as you may well wind up in a debt reduction plan that is the same as what you are living with in the first place.”

To contact an Iowa bankruptcy attorney, Iowa bankruptcy lawyer, or set up an appointment, visit or call 1.877.888.1766.

Kevin Ahrenholz
309 Court Ave., Suite 805
Des Moines, IA 50309
Offices in Des Moines, Cedar Rapids, Waterloo, Mason City, and Vinton.

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