Practice Areas and Legal Definitions

Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws. Although some bankruptcy claimants are deemed as credit abusers and/or considered financially irresponsible, many hardworking individuals and businesses can succumb to financial difficulty, and face irreparable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt. To discuss your bankruptcy options, or other areas of recourse that might be available to you, contact a qualified bankruptcy attorney who can advise you of your legal rights as stated under Bankruptcy Law and federal Bankruptcy courts.

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now required to seek budget and credit counseling within six months of filing, financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

If you or someone you know needs the assistance of an experienced Fairfield Iowa Bankruptcy lawyer, call Edward Noyes today at 866-927-9520, or complete the contact form provided on this site to schedule a free consultation.

If you or someone you know needs the assistance of an experienced Fairfield Iowa Bankruptcy lawyer, call Edward Noyes today at 866-927-9520, or complete the contact form provided on this site to schedule a free consultation.

ADDRESS OF THE FIRM:
Noyes Law Office
104 North Main Street
Fairfield, IA 52556
Phone: 866-927-9520
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

• Attorney Edward F. Noyes

Edward Noyes has maintained a general practice of law in Jefferson County, Iowa since 1985. He practices extensively in the areas of bankruptcy, criminal defense, and personal injury, and is a certified member of the National Association of Consumer Bankruptcy Attorneys. Ed grew up in rural Nebraska; his family includes multiple generations of farmers whose ancestors homesteaded in Nebraska. Ed's great-grandfather was the first person in Nebraska to grow over 100 bushels of corn per acre, (using horses and hand picking).

Edward attended the University of Nebraska and received a Bachelors of Science degree in Agriculture, majoring in Wildlife Biology and Agricultural Economics. He then graduated from the University of the Pacific McGeorge School of Law, Sacramento, California (he attended the University of Iowa School of Law in the last year of his law school education).  Edward has been active in community service development for many years, including multiple leadership roles in the International Community Service Day projects held in Fairfield, and is active in various youth mentoring projects including being the Founder of the Annual Men and Boy's Canoe Trip, which for over ten years takes young men on an annual Camping/Canoe Trip. He also sponsored and produced a Young Men's Adventure Summer Camp.

Edward Is a lifelong student of history and government; committed to fulfilling the vision of our Nation's Founders. He has successfully completed the three year "Evening a month for America" program, sponsored by the National Center for Constitutional Studies, and produced one of the first local Cable Access Television Programs in Jefferson county, entitled "Community Empowerment, Rediscovering Our Unlimited Resources." Edward was a candidate for Attorney General of Iowa in 2002 after winning nomination from the Libertarian Party of Iowa. He has co-Authored "Restoring the Heart of America, a Return to Government by the People" with Clyde Cleveland, of Fairfield, Iowa (candidate for governor of Iowa, 2002).