How can filing for bankruptcy help?
The bankruptcy laws are in effect in order to help people who have become overwhelmed with debt regain control of their lives. Once a bankruptcy petition is filed, the court grants an automatic stay, which acts as a restraining order and puts an immediate stop to harassment from creditors.
Additionally, filing for bankruptcy can get utilities that have been shut off for non-payment — such as electric, telephone and gas services — promptly turned back on. Drivers licenses that have been revoked because of an uninsured car accident may also be reinstated after filing for bankruptcy.
How does filing for bankruptcy affect credit?
While bankruptcy serves as a fresh start, it doesn’t necessarily mean starting with a clean slate. A bankruptcy can stay on a person’s credit report for up to 10 years. However, individuals who file for bankruptcy can usually start rebuilding their credit scores almost immediately after filing.
Additionally, bankruptcy only deals with the qualifying debts that were incurred prior to filing, which means it is still possible to get into financial trouble after filing for bankruptcy. It is only possible to file for Chapter 7 bankruptcy protection once every eight years.
How much does it cost to file bankruptcy?
The cost of bankruptcy depends on several factors, including the type of bankruptcy that a person elects to go through. The most common types of bankruptcy for consumers are Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Our firm is happy to go over potential costs and fees associated with bankruptcy over the phone. After we meet, we can then conduct a better evaluation of your case to give you a more accurate quote of what you can expect to pay.
Still deciding whether to file for bankruptcy in Wisconsin? Visit our Frequently Asked Questions page for more information.
