Filing Bankruptcy In Wisconsin
Youll notice from the table of the contents that we focus specifically on Chapter 7 and Chapter 13 bankruptcy. Why? Because these two types of bankruptcy are the most common bankruptcy in America . There are other types such as the Chapter 11 and Chapter 11 subchapter 5 bankruptcies, but these are far less common for consumers .
Why File For Chapter 7 Bankruptcy
Individuals that file for Chapter 7 Bankruptcy will have most, if not all, of their debts discharged, or wiped out. This means that once you file:;
- You will be legally free of all qualified debts that are discharged after a successful Chapter 7 Bankruptcy.
- Any collection attempts from the creditor will be prevented and harassment by creditors will cease.
- You can stop garnishments that have been placed against your wages.
Milwaukee Chapter 13 Attorney Explains What You Need To Know
Attorneys Note: The below should not be construed as a substitute for legal counsel. Contact Milwaukee bankruptcy lawyer Steven R. McDonald for your free initial consultation.
What is Chapter 13 bankruptcy?
Chapter 13 Bankruptcy is a reorganization of debts, as opposed to a liquidation.; Chapter 13 bankruptcy is similar to Chapter 7 bankruptcy, however, Chapter 13 Bankruptcy focuses primarily on a repayment plan rather than liquidation of debt. Like Chapter 7 Bankruptcy, Chapter 13 is strictly for individuals, not businesses. Click here for more information about Chapter 7 vs Chapter 13 bankruptcy.
This form of bankruptcy filing is also usually best for individuals who have lost income and owe creditors, but have since reestablished a secured source of income. Chapter 13 is also known as a wage earner plan. Jump to Chapter 13 bankruptcy rules.
Below, our Chapter 13 attorney has provided detailed information on Chapter 13 bankruptcy filings, including Chapter 13 Bankruptcy requirements, how to file, and the fees associated with filing Chapter 13 Bankruptcy.;Contact us for a free case evaluation, or for more information.
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What’s The Difference Between Chapter 7 & Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 bankruptcy share a few similarities. Both personal bankruptcy options are available to individuals, and both offer you the opportunity to discharge certain debts. Both options immediately impose an automatic stay to keep creditors from taking further action against you, giving you protection during the filing process.
Heres the primary distinction: Chapter 7 bankruptcy is a liquidation of debts, and Chapter 13 is a reorganization of debts.
You Dont Have To Be Held Back By Debtits Your Right To Move Forward
When youve been affected by financial hardship and the cost of your bills has surpassed your control, you have options. You have the right to get out of debt and move forward with your life. Filing for bankruptcy will stop creditors from hassling you and end financially crippling income garnishments. It will also help you start torebuild your credit, and you can typically keep major assets like your car and home.
Chapter 7 Vs Chapter 13 In Wisconsin
Chapter 7 bankruptcy: In Chapter 7, you are at risk of your nonexempt property being sold and used to pay off debts. Its generally meant for those who cannot afford to pay little to any of your debt. Its often less expensive than a Chapter 13 bankruptcy, and you can receive a discharge within 120 days. It stays on your credit report for 10 years.
Chapter 13: In Chapter 13, you reorganize your debts similar to a debt settlement program. Your property above the exemption is often not sold as you may be able to protect your assets. Its often more expensive than a Chapter 7 bankruptcy, and you generally will receive a discharge in 3 or 5 years. It stays on your credit report for 7 years.
When your debt is discharged, this means that you are not required to pay that debt back.
What Must Be Included In A Bankruptcy Filed In Wisconsin
Each and every debt that you have must be included in your Bankruptcy filing. No matter what Chapter of the Bankruptcy code you file under, you are expected to include all of your debts and liabilities when you file. Debts include everything from: medical bills, utilities, credit cards, car loans, and personal loans. If you are being sued by a creditor for default, that too should be included. Â;As part of filing for bankruptcy in Wisconsin, the code requires that you also include your assets within the petition. The court will want to know about any homes, automobiles, collectable items, antiques, furniture, stocks or even bank accounts, that you might own. Â; Â;
Another crucial item that must be included in your petition involves your debt to income ratio and means test. The petition will ask about your income and expenses. If you are married but not filing jointly, you may still be required to include your spouseâs income. The Trustee will ask that you include 3 months pay stub info and even 3 years of tax information if applicable to your petition.
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Take Credit Counseling Course
You have to take two mandatory credit counseling courses to complete your Chapter 7 bankruptcy. The Chapter 7 trustee may request the certificate of completion in the meeting of creditors. The first course is a pre-bankruptcy course, and the second is the pre-discharge course.;
If you are filing with an attorney, your attorney may have suggestions for both the credit counseling and debt education course. If not, you can see the list of approved credit counseling courses in Wisconsin.
How To File Bankruptcy In Green Bay Wisconsin For Free
If you have survived winter in Green Bay, Upsolve believes you already have the endurance it takes to file a Chapter 7 bankruptcy in Green Bay for free. With a little information from our content, some links to additional resources and,if you qualify, our online portal you can have your Wisconsin bankruptcy filed in as little as ten days.
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What Do I Need To File Bankruptcy In Wisconsin
All you really need is a government issued I.D. that shows youâre a resident of the state of Wisconsin, and a social security number or ITIN. The barriers to entry are pretty low as the purpose of this code, is to assist those going through hardship. As part of this purpose, the regulations also require you to take a court approved credit counseling class. You will be required to file a certification of completion along with your bankruptcy petition. Once your petition is filed you will have to follow that class up with a second post filing credit counseling class. This second certificate is required for your case to close successfully. Â;
The Petition you file is at the center of everything in this case. It is important to have everything organized in an efficient manner with the proper exemptions listed accordingly. Your petition should have all the information regarding your secured and non-secured debts including details for notification. The petition will indicate to the court and your creditors, exactly what your intentions are. This is the document that drives the case and instructs the court what you wish it to order.
A Wisconsin Trustee Is Assigned To Your Bankruptcy Filing
A bankruptcy trustee is assigned to your bankruptcy case to review the paperwork and look for non-exempt belongings that you may own. You have to submit such forms as a recent tax return to the trustee. If you have non-exempt belongings, the trustee may manage the sale and liquidation of those belongings.
See the Chapter 7 and Chapter 13 trustees in Wisconsin for bankruptcy district, name and contact information. As a Chapter 13 bankruptcy is much longer, you may have more interaction with the Chapter 13 trustee or someone from his/her office.
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Cost Of Chapter 7 And Chapter 13 In Wisconsin
Any important question that you are probably asking yourself is what is the cost of attorney fees, filing fees and whatever other costs are associated with bankruptcy.
- Attorney Fee: Often different cities and counties in Wisconsin will have different attorney costs, including variability of cost based on experience. You may want to check out a Wisconsin bankruptcy cost calculator to estimate the cost for your zip code.
- Filing, Admin and/or trustee surcharge fee: The fee for Chapter 7 is $335 and the fee for Chapter 13 is $310 .
Can You Get Loans After Bankruptcy
It is technically possible to get an unsecured personal loan after bankruptcy, but you usually have to wait a bit for your bankruptcy to age and your credit score to improve before you can get approved for a loan with reasonable terms.
Chapter 13 Bankruptcy Wisconsin
Chapter 13 bankruptcy Wisconsin is a payment plan bankruptcy where your debts are reorganized via the bankruptcy court, often in a 3 or 5-year payment plan. One of the most important questions is determining your monthly plan payment. Once you have a sense of your plan payment, you compare that payment to your current monthly obligations to see whether you may afford Chapter 13 bankruptcy. Debt settlement is often an alternative to a Chapter 13 bankruptcy. For a deep dive on Chapter 13 bankruptcy, you may want to check out the article titled Chapter 13 Wisconsin
Wisconsin Bankruptcy Process How To File Bankruptcy In Wisconsin
2005 Bankruptcy Act Credit Counseling The 2005 Bankruptcy Act requires all individual debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy relief and to complete a financial management instructional course after filing bankruptcy.
2005 Bankruptcy Act Means TestUnder the 2005 Bankruptcy Act your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter 13. To apply the means test, the courts will look at the your average income for the 6 months prior to filing and compare it to the median income for Wisconsin. If the income is below the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you must file Chapter 13.
Gathering PaperworkTo begin the bankruptcy process you must itemize your current income sources; major financial transactions for the last two years; monthly living expenses; debts ; and property . You should also collect your tax returns for the last two years, deeds to any real estate you own, your car titles, and the documents for any loans you may have.
The cost for filing a Chapter 7 bankruptcy is $306. This fee may not be waived but you may be able to pay it in installments. The fee of $281 for a Chapter 13 bankruptcy cannot be waived.
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Take Bankruptcy Course 2
Before the court can enter a discharge in your Chapter 7 bankruptcy in Wisconsin, you have to take bankruptcy course 2. This course focuses on financial management and aims to set you up with the tools you need to take full advantage of your fresh start while managing your finances responsibly. Even though everyone filing Chapter 7 in Wisconsin has to take this course, you can’t actually do so until after your case has been filed. Similar to the course you took before, you will receive a certificate of completion after you are done. This certificate has to be filed with the court in order to alert the judge that you have complied with this requirement. The United States Trustee has published a list of companies that are approved to offer this course to folks filing bankruptcy in Wisconsin. As before, you can choose to take the course in person, over the phone, or online.
How Long Does The Bankruptcy Process Take In Wisconsin
The process begins with your first consultation. By speaking with one of our attorneys, you will find out within the first couple of minutes what Chapter of Bankruptcy you are eligible for and what type of relief may be granted. Once retained, our office is able to assist you with a review of your credit report and assessment of your debt. Â;After deciding which path to take with your attorney, you will know which credit counseling course you will be required to take. Â;With the information you provided your attorney, they will be able to file the petition and get you in front of the trustee for a 341 meeting within 45 days. Depending on the Chapter you filed under and depending on the successful completion of your second class , your matter may be closed 60 days after the hearing. Â;
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What Type Of Bankruptcy Should I File
Based in Beloit, Wisconsin, our attorneys at The Fitzgerald Law Firm understand the question, Should I file bankruptcy? can weigh heavily on the minds of our clients. When making this important decision, it is best to first explore the pros and cons of filing for bankruptcy with a knowledgeable attorney.
Once you have consulted an experienced attorney and been able to determine that you do want to file bankruptcy, the next step is to answer the question, What type of bankruptcy should I file? In our experience, the best way to do this is to understand the differences between the different types of bankruptcy .
Wisconsin Bankruptcy Lawyer Cost
Hiring a lawyer for your Chapter 7 bankruptcy in Wisconsin can save you money in the long run, especially if you have not lived in Wisconsin for at least 2 years or have assets that don’t fit neatly into one of the exemption categories available to you. The cost of a bankruptcy lawyer depends on the relative complexity of your case with an average cost just under $1,500.
Attorney cost estimate: $1,250 â $1,665
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Understand Which Debts Will Be Eliminated
The goal of bankruptcy is to get relief from your debt. As such, it can be helpful to understand the types of debt that can be eliminated when filing for bankruptcy.;
Many debts can be discharged. This includes unsecured credit cards, medical debts, personal loans, old utility bills, judgment debts, and old lease payments;
Other debts cannot be discharged. This includes back alimony or child support, debts owed to the government, judgments related to DUI accidents, tax debts, and administrative costs or restitution;
Tax debt receives special treatment in Chapter 13. You may not know how much debt you have. As such, you can access a free credit report annually, thanks to the US government. This can help you estimate how much debt would be eliminated by filing for bankruptcy.
Benefits Of Chapter 13 Bankruptcy
Like Chapter 7 filings, there are a number of advantages to declaring Chapter 13 bankruptcy. Through this type of filing, people establish a debt repayment plan, as opposed to liquidating their assets. As such, they are able to keep their exempt, as well as their non-exempt, property.
Additionally, Chapter 13 bankruptcy stops foreclosures and other collection efforts. According to the U.S. Courts, this may enable people to keep their homes if they can continue to make their regular monthly mortgage payments after filing.
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What Are The Debt Limits For Filing Bankruptcy
Remember, those with high debt levels may not be eligible to file Chapter 13 bankruptcy. In these rare cases, they may be eligible under Chapter 11. According to 11 U.S.C. Â§ 109, if your total unsecured debts are not less than $360,475.00 or if your total secured debts are not less than $1,081,400.00, you are not eligible to file under Chapter 13. These amounts are increased every few years. The debt amount restrictions do not apply to those who file Chapter 7.
Can I File Chapter 7 If My Income Is Higher Than The State Median
Filing a Chapter 7 won’t be easy if your income is above the median income in your state. As of May 2015, the median income for an individual in Wisconsin is $43,666 and for a household of two it is $59,740. For a household of three people it is $69,600.
If your income is above the median, you are required to first complete and file the means test. This means test form is very complicated and you will need to hire an attorney who specializes in bankruptcy to help you complete the form and determine whether you qualify for Chapter 7. Those with high incomes who cannot file Chapter 7 are often still eligible under Chapter 13, so long as their debts don’t exceed the Chapter 13 debt limits.
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Cudahy Bankruptcy Lawyer Helps You Get Rid Of Payday Loans
Sometimes when you need quick cash, you resort to a high-interest cash advance like a payday loan. Unfortunately, if you are untimely in your repayment, interest payments can multiply quickly and become a real problem.
If your repayments get out of control and you have no other options, Chapter 13 bankruptcy gets rid of payday loan debt for individuals who have since found a source of income.;
Bankruptcy lawyer Steven R. McDonald, serving the greater Milwaukee area, has years of experience handling Chapter 13 filings and helping people struggling with their payday loan debt. Before you try tackling the Chapter 13 bankruptcy process on your own, understand the risks and responsibilities of filing for bankruptcy without a lawyer.
Schedule a free consultation today and find out how he helps you get rid of your payday loan debt once and for all.
Milwaukee Chapter 13 bankruptcy attorney plans your repayment.