Filing for Chapter 7 bankruptcy in Iowa can feel overwhelming, especially when you're already under financial stress. That’s why we created this calculator—to help you get a clearer idea of the total cost before you file.
Chapter 7 bankruptcy is often called "liquidation bankruptcy." It’s meant for people who can’t pay back their debts. Most unsecured debts—like credit card balances and medical bills—can be wiped out. But even though it can help you get a fresh start, it does come with costs. Here's what goes into those costs and how our calculator helps you add them up.
Attorney Fees
Most people who file for Chapter 7 use an attorney. In Iowa, attorney fees usually range between $1,100 and $1,500. This fee covers filing your case, preparing your documents, and going to court with you. If your case is complex, like if you own a small business or have non-exempt assets, the fee could be higher.
Federal Filing Fee
No matter where you live, the federal filing fee for Chapter 7 is $338. This fee is required and goes directly to the bankruptcy court. It must be paid when you file your case unless you request a payment plan or qualify for a fee waiver.
Credit Counseling Course
Before you can file, you're required to take a credit counseling course from an approved agency. This course usually costs between $25 and $50 and takes about an hour online or by phone.
Debtor Education Course
After you file, you'll need to complete another course called debtor education or financial management. Like the first course, it usually costs around $25 to $50 and must be done before your debts can be discharged.
Other Costs or Trustee Fees
Depending on your situation, you may have other costs. Some people are charged trustee fees if assets are involved, or they may need to pay for things like document preparation, postage, or court copies. These aren't always required, so we’ve included this field in case they apply to you.
Once you enter your numbers into the calculator, it adds up the total cost of your Chapter 7 case. This estimate helps you understand what you’re likely to spend, so you can plan ahead. Keep in mind that costs can vary slightly depending on your location, the complexity of your case, and the attorney you hire.
Iowa follows federal bankruptcy law, which means the overall process is the same as in most other states. But Iowa has its own set of exemptions—rules about what property you can keep. For example, you might be able to keep your home, car, or retirement savings, depending on their value. That’s one reason it’s helpful to speak with a local bankruptcy attorney before filing. They can help you understand how Iowa’s laws apply to your assets and whether Chapter 7 is the right choice.
Filing for bankruptcy doesn’t have to be confusing. Our team is here to help you understand your options and guide you through the process. If you’re ready to get started or just have questions, reach out to us today. You don’t have to do this alone.
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