The New Iowa Bankruptcy Law
Des Moines, Iowa – Bankruptcy Attorney
Jeff Mathias – Iowa Bankruptcy Lawyer
4800 Mills Civic Parkway, Suite 205
West Des Moines, Iowa 50265
Tel. 515-261-7526 jeff@mathiaslaw.com
New Iowa Bankruptcy Law
The new Iowa bankruptcy law started in October, 2005. It makes filing Iowa bankruptcy more difficult, but attentive clients are still doing fine. Here are the latest on the requirements. It is very important to comply strictly with each requirement in order to have a successful bankruptcy. But as long as you stay on top of the details the new requirements are very manageable.
Jurisdiction & Exemptions
If you have lived in Iowa for the last 730 days (two years), great; you are fine. If you have not lived in Iowa for the last 730 days, your exemptions would be based on where you lived 180 days prior to the last 730 days. If you have not lived in Iowa for the last 730 days, let me know & we can see which exemptions would apply in your case and whether bankruptcy is feasible for you.
Income (Means Test)
Check your total household income against the chart below. You must include all household income including wages for a non-filing spouse, social security to anyone in your household, child support and all other income. If your household income is below the state median listed below you have a much better chance of a successful Chapter 7 bankruptcy. If your income exceeds the state median income the means test applies and we would need to examine your expenses to see if you are eligible for a Chapter 7 bankruptcy.
| | Iowa Annual Median Income |
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| 1 Person | $34,321 |
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| 2 People | $45,518 |
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| 3 People | $54,099 |
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| 4 People | $61,951 |
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| 5 People | $74,551 |
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(add $6300 for each additional household member)
Income (Prior Six Months)
The new bankruptcy law considers your six month average income at the time of filing. This can be a problem if your income was well above median recently but has just dropped. In any case, if you have had a major income drop within the past six months, we need to discuss it when you come in.
Class #1 - Credit Counseling Certificate
(Must be done before filing.)
You must complete a credit counseling class before you can file bankruptcy. You can take the class online or on the telephone if you wish and it costs about $50. Bring the certificate with you to my office for your first appointment. See list of approved agencies below.
Correct Creditor Addresses & Account Numbers
The new bankruptcy law requires that you give notice to creditors at the address that appears on your bills. You must bring all your bills to the office so that we can properly notify each creditor and include the account number. If you do not have your bills, you should pull a complete credit report including all creditor addresses at www.equifax.com.
Pay Stubs from Work
We have to file copies of your pay stubs from work covering the last 60 days. If you have lost a pay stub you can ask your employer for another copy. If you do not receive pay stubs you may be able to go online with your employer and print something off showing gross wages, deductions, net income etc. If you do not receive wages I can have you complete an affidavit to that effect.
Most Recent State and Federal Tax Returns
You must bring copies of your most recent state and federal tax returns to my office so I can provide those to the trustee. If you have past due taxes, you should go ahead and file them before filing your bankruptcy. Taxes are not past due until April 16th.
Class #2 - Financial Management Certificate
(Must be done after filing.)
After your bankruptcy is filed you must take the second class on financial management. Again, you can take this online or on the phone and it costs around $50. Bring the certificate to your hearing and give it to me so I can file it with the Court. See list of authorized providers below.
Divorce & Back Child Support Debt
If you owe money ordered paid in a divorce decree or back child support it is not discharged in bankruptcy. The trustee can also sell your exempt property to pay off your back child support under the new law, so we will need to discuss any back child support that you may owe.
Creditors Meeting Requirements
You must bring a government issued photo ID (drivers license is best) and your social security card or proof of social security number such as a W2 or tax return. You also must bring your most recent check stub from work (you will have received this after filing your bankruptcy) and copies of the most recent statement on each of your bank accounts. If you are not receiving wages at the time of your hearing you need to write that down on a piece of paper and sign it and bring the paper so the trustee will have a document in their file to show that you do not receive wages.
Don’t be Alarmed
A successful bankruptcy is more challenging than it used to be but it can be done! I joke that my favorite clients now are obsessive/compulsive. If you are conscientious, we have a very good chance of getting your case through successfully. If I don’t think your case will succeed I will tell you up front
Approved Credit Counseling Providers (Class #1)
Warning- You must take this class before your bankruptcy is filed, otherwise your case will be dismissed. You should go ahead and take this class before coming to my office & bring your certificate with you when you come to see me.
IAS - Southern District of Iowa
Consumer Credit Counseling Service of Greater Atlanta Inc.
100 Edgewood Avenue, Suite 1800
Atlanta, GA 30303
800-251-2227
www.cccsinc.org
In Person (not available in all judicial districts), Telephonic and Internet
Consumer Credit Counseling Service of Nebraska, Inc.
8805 Indian Hills Drive
Suite 105
Omaha, NE 68114
877-494-2227
www.cccsn.org
In Person and Telephonic
Credit Advisors Foundation
1818 South 72nd Street
Omaha, NE 68124
800-942-9027
www.creditadvisors.org
In Person (not available in all judicial districts), Telephonic, and Internet
Credit Counseling Centers of America
9330 LBJ Freeway, Suite 900
Dallas, TX 75379-8039
800-493-2222
www.cccamerica.org
In Person (not available in all judicial districts), Telephonic and Internet
Garden State Consumer Credit Counseling, Inc.
225 Willowbrook Road
Freehold, NJ 07728
877-892-4557
www.novadebt.org
In Person (may not be available in all judicial districts) & Telephonic
Hummingbird Credit Counseling and Education, Inc.
3737 Glenwood Avenue, Suite 100-106
Raleigh, NC 27612
800-645-4959
www.hbcce.org
Telephonic & Internet
Institute for Financial Literacy, Inc.
449 Forest Avenue, Suite 12
Portland, ME 04101
866-662-4932
www.financiallit.org
Telephonic & Internet
Money Management International Inc.
9009 West Loop South, 7th Floor
Houston, TX 77096-1719
877-918-2227
www.moneymanagement.org
In Person (not available in all judicial districts), Telephonic and Internet
Springboard Nonprofit Consumer Credit Management Inc.
4351 Latham Street
Riverside, CA 92501
800-947-3752
www.credit.org
In Person (not available in all judicial districts), Telephonic and Internet
Approved Financial Management Class Providers (Class #2)
Warning- You cannot take this second class until after your bankruptcy is filed, otherwise your certificate will be rejected.
IAS - Southern District of Iowa
Black Hills Children's Ranch, Inc.
1644 Concourse Drive
Rapid City, SD 57703
800-888-1596
www.pioneercredit.com
In Person (may not be available in all judicial districts) & Telephonic
Consumer Credit Counseling Service of Greater Atlanta, Inc.
100 Edgewood Avenue, Suite 1800
Atlanta, GA 30303
404-653-8809
www.cccsinc.org
In Person (not available in all judicial districts) & Internet
Consumer Credit Counseling Service of Northeastern Iowa, Inc.
1003 West 4th Street
Waterloo, IA 50702
800-714-4388
www.cccsia.org
In Person, Telephonic, and Internet
Consumer Credit Counseling Service of San Francisco
150 Post Street, 5th Floor
San Francisco, CA 94108
800-777-7526
www.yournextmove.org
In Person (may not be available in all judicial districts), Telephonic, and Internet
Des Moines Area Community College
2006 S. Ankeny Blvd.
Ankeny, IA 50023
515-964-6686
www.dmacc.edu
In Person
Eastern Iowa Community College District
306 West River Drive
Davenport, IA 52801
888-336-3907
www.eicc.edu
In Person
Horizon Consumer Credit Counseling Service
819 5th Street, SE
Cedar Rapids, IA 52401
319-398-3576
www.horizonsfamily.org
In Person
InCharge Education Foundation, Inc.
2101 Park Center Drive, Suite 310
Orlando, FL 32835
866-729-0049
www.personalfinanceeducation.com
Internet
Institute for Financial Literacy
449 Forest Avenue, Suite 12
Portland, ME 04101
207-879-0389
www.financiallit.org
Telephonic
Money Management International, Inc.
9009 West Loop South, 7th Floor
Houston, TX 77096-1719
866-745-2227
www.moneymanagement.org
In Person (not available in all judicial districts), Telephonic and Internet
Kirkwood Community College
6301 Kirkwood Blvd. SW
Cedar Rapids, IA 52406
800-332-8833
www.foryourlifetime.com
In Person
Novadebt
225 Willowbrook Road
Freehold, NJ 07728
866-254-2660
www.novadebt.org
In Person (may not be available in all judicial districts), and Telephonic
Sections of the Bankruptcy Code Amended by the Bankruptcy Reform Act/Bankruptcy Abuse Prevention and Consumer Protection Act
CHAPTER 1--GENERAL PROVISIONS
§ 101. Definitions
§ 109. Who may be a debtor
§ 110. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions
§ 111. Credit counseling agencies; financial management instructional courses [New Section]
§ 112. Prohibition on disclosure of identity of minor child [New Section]
CHAPTER 3--CASE ADMINISTRATION
§ 342. Notice
§ 348. Effect of conversion
§ 365. Executory contracts and unexpired leases
CHAPTER 5--CREDITORS, THE DEBTOR, AND THE ESTATE
§ 502. Allowance of claims or interests
§ 507. Priorities
§ 521. Debtor's Duties
§ 522. Exemptions
§ 523. Exceptions to discharge
§ 524. Effect of discharge
§ 526. Restrictions on debt relief agencies [New Section]
§ 527. Disclosures [New Section]
§ 528. Requirements for debt relief agencies [New Section]
§ 541. Property of the estate
§ 547. Preferences
CHAPTER 7--LIQUIDATION
§ 704. Duties of trustee
§ 706. Conversion
§ 707. Dismissal of a case or conversion to a case under chapter 11 or 13
§ 727. Discharge
CHAPTER 11--REORGANIZATION
§ 1106. Duties of trustee and examiner
§ 1115. Property of the estate [New Section]
§ 1129. Confirmation of plan
CHAPTER 12--ADJUSTMENT OF DEBTS OF A FAMILY FARMER WITH REGULAR ANNUAL INCOME
§ 1202. Trustee
§ 1208. Conversion or dismissal
§ 1225. Confirmation of plan
§ 1228. Discharge
CHAPTER 13--ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR INCOME
§ 1302. Trustee
§ 1307. Conversion or dismissal
§ 1308. Filing of prepetition tax returns [New Section]
§ 1322. Contents of plan
§ 1324. Confirmation hearing
§ 1325. Confirmation of plan
§ 1326. Payments
§ 1328. Discharge
§ 1329. Modification of plan after confirmation
28 USC § 1334. Bankruptcy cases and proceedings
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