Iowa Debt Relief: Is It Legitimate? 5 Things to Know

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You may have seen ads for Iowa Debt Relief Org or you are just considering debt relief in general due to a financial hardship.

You are in the right place.

The purpose of this article is to help you understand the legitimacy of debt relief in Iowa . The best way to gauge the legitimacy of a program might be to consider online reviews. However, you may find that there are not many reviews covering Iowa debt relief. That said, we found some interesting insights. Here’s what we’ll cover:

  1. What is Iowa Debt Relief?
  2. How Much Does Iowa Debt Relief Cost?
  3. Does Iowa Debt Relief Provide Emergency Debt Relief?
  4. Whether Iowa Debt Relief is legitimate
  5. Pros and Cons of Debt Relief Options
Let’s get started.

What Is Iowa Debt Relief?

Iowa debt relief is an organization that links debtors with other debt settlement companies. Or, it is a financial hardship option when you cannot afford your debt.

Debt relief is a broader term, which refers to getting assistance to help with your debt. Here’s the various debt relief options:

  • Iowa Chapter 7 Bankruptcy
  • Iowa Chapter 13 Bankruptcy
  • Debt Relief
  • Debt Management

Please note that many people consider Iowa when they are facing a hardship such as Iowa wage garnishment or a debt collection lawsuit or something that is forcing them to consider their options. Also, you may be curious how popular the bankruptcy option is.

How Much Does Iowa Debt Relief Cost?

The cost of Iowa debt relief is one of the most important things to consider because you are looking for debt relief.

At Ascend, we believe that debt relief may be a good option, but it’s only in the context of understanding all of your options and understanding the cost of that option. This is exactly why we built a free debt relief cost comparison calculator below that helps you compare the cost of debt relief, debt management, bankruptcy, and debt payoff planning. It’s 100% free, and doesn’t even require an email address.

 

Let’s cover some of the costs.

Chapter 7 bankruptcy is often the cheapest and fastest Iowa debt relief option, but you often have to qualify using the Iowa bankruptcy means test, which is based on your income, household size, and state. If it’s helpful, here are the income limits for bankruptcy cases filed on or after April 1, 2024.

# of PeopleAnnual Income
1$61,283
2$83,592
3$98,987
4$120,308
5$130,208
6$140,108
7$150,008
8$159,908
9$169,808

From using the calculator, you will notice that the cost to file bankruptcy in Iowa is $313 for a Chapter 13 and $338 for a Chapter 7 bankruptcy. You may notice that does not include attorney fees though. Attorney fees may vary depending on where you live. For example, the Chapter 7 attorney fees are estimated at $1,170 in Des Moines vs $1,125 in Davenport. For Chapter 13 bankruptcy in Iowa the estimated attorney fee is $3,000.

You may also see that you are at risk of losing assets such as your home or vehicle if you have too much equity in a vehicle. To protect these assets, you can look at the Iowa bankruptcy exemptions. For example, you can see the homestead exemption information below (source):

“Iowa Code Ann. § 561.16. Unlimited for 40 acres rural, 1/2 acre urban, homestead retains its prior protection despite annexation.”

For debt management in Iowa, you’ll see the estimated monthly payment driven by potential interest rates reduction. Debt management is often most helpful if you have high interest credit cards.

For debt settlement, you’ll notice an estimated fee amount and an estimated settlement amount as the companies are trying to negotiate amounts (from say $10,000 to $5,000).

What is Emergency Debt Relief

Many people are looking for emergency debt relief in Iowa, often capturing the most recent events. For example, a debt relief company may be pitching inflation debt relief when inflation is high.

If a company is promising you Iowa emergency debt relief, please do your research to make sure that they are not just trying to pitch to you a debt relief program with high fees.

Is Iowa Debt Relief legitimate?

Many people in Iowa experience hardship that requires some sort of debt relief. Thankfully, there are legal debt relief options such as bankruptcy in Iowa to help you get relief from your debt and a fresh start.

In Iowa, you may also find legal aid options helpful that can help you get the help you need at a lower cost.

Please note that not everyone qualifies for free legal aid. If you are at or below the Iowa poverty guidelines, you potentially could also have your bankruptcy filing fee waived. Below are the Iowa poverty guidelines.

# of People150% Poverty Guideline
1$15,060
2$20,440
3$25,820
4$31,200
5$36,580
6$41,960
7$47,340
8$52,720
9$58,100
* Add $5,380 for each individual in excess of 9.

Pros and Cons of Debt Relief Options

Finally, let’s cover some of the pros and cons of debt relief in Iowa. You can find this list of pros and cons in our debt relief calculator results as well.

Chapter 13 Bankruptcy Iowa

Pros:

  • Legal protection against creditors
  • Property protection against creditors
  • No taxes on unpaid debt
  • No qualification necessary (as long as under Chapter 13 debt limits)

Cons:

  • High damage to credit report (on public record)
  • High damage to credit score
  • Possible low availability to credit after filing
  • Low payment flexibility
  • Length of time 3-5 years
  • Low to medium success rate

Chapter 7 Bankruptcy Iowa

Pros:

  • Length of time ~ 90 days
  • Most inexpensive option: ~$2,000
  • Legal protection against creditors
  • No taxes on unpaid debt
  • Eliminates most unsecured debt
  • High success rate

Cons:

  • High damage to credit report
  • High damage to credit score
  • Possible low availability to credit after filing
  • No property protection above exemption
  • On public record
  • Must qualify for Chapter 7 in Iowa

Debt Settlement

Pros:

  • Potential savings can be significant
  • Payment flexibility for inconsistent income
  • Can be < 1 year with access to capital
  • May access credit sooner than bankruptcy
  • Account cancellation creates accountability

Cons:

  • Medium to high damage to credit report
  • Medium to high damage to credit score
  • Potential taxes on forgiven debt
  • May be sued and collections can continue
  • Late fees and interest
  • On Public Record (if creditor sues)
  • Low to medium success rate

Should I Pursue Debt Relief in Iowa?

Pursuing debt relief in Iowa is ultimately your decision and you know your finances best. For example, are you living in Cedar Rapids and seeing that your rent is going to continue to rise? Are you facing inflation pressures from living in Des Moines and trying to live on a Iowa minimum wage of $7.25 per hour?

What you can do (if helpful) is take the free Iowa debt relief calculator below that can help you estimate the costs and pros and cons of each of your options.

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Reviews

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Synthia DuBose

 08/21/2023

My family was grappling with the burden of credit card debt. We had explored various avenues, including debt relief companies and consolidation loans, but everything seemed dubious and left us feeling uncertain. That all changed when I came across Ascend and had the opportunity to connect with Justin. He reached out to me on the very same day, and from that point forward, things took a turn for the better.

I provided Justin with an overview of our financial situation, our objectives, and the timeline we hoped to achieve our goals within. He promptly outlined the possible courses of action and presented a thorough breakdown of our various options. What truly stood out was Justin’s approach—he never pressured me into making a quick decision. Instead, he offered me the information and allowed me to ask questions at my own pace.

Upon selecting the path we wanted to pursue, Justin facilitated our connection with a non-profit organization. Much to our delight, they exhibited the same level of courtesy, expertise, and patience that Justin had demonstrated. In retrospect, the entire experience instilled a sense of confidence within us. We now believe we have a solid foundation and are well on our way to achieving financial success!

Dahveed Krisna

 07/26/2022

Ben and his assistant Jeffrey from Ascend Finance did an awesome job helping me to find an attorney who could talk with me openly and honestly about Chapter 13 as an option for my financial situation. Before finding out about Ascend’s bankruptcy calculators, I was stuck on a wheel of countless offers for consolidation loans, but always steered towards debt settlement or debt management plans over and over again due to my credit score and high utilization percentage. Based on data I entered into Ascend’s calculator, Ben and Jeffrey reviewed my situation and quickly connected me with a skillful, experienced bankruptcy attorney. I finally feel like I’m on the best path to being debt free; one that will save me a lot more money than any of the debt settlement or debt management programs that other companies and agencies have offered me… THANKS Ben, Jeffrey and Ascend!!

JorJor Binks

 02/09/2024

These guys are truly a beacon for those of us with too much debt. From the start where I found Ben on the YouTube channel Ascend I have been treated as a real person by real people. Even getting a personal call helping me figure things out. I went through one of the lawyers recommended by Ascend and as of January 2nd I am debt discharged, and already have a great credit card from Mission Lane for $2000. Things are getting back into place and my life feels so much less stressful due to the weight of debt being off my shoulders.

PLEASE give these guys a call if you are even considering any sort of debt relief be it bankruptcy, consolidation, or whatever other types of debt relief are out there. I can’t thank the Ascend team enough. (I was not paid to post this, or told to do this. I am genuinely so thankful to have the help when I needed it most♥️)

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