Filing for bankruptcy can be stressful and emotional for all parties involved, especially when you realize it has to be done. No one wants to file, but in almost all instances it is unavoidable. It can also help people regain their life and financial freedom after time. Here is an overview of Chapter 13 bankruptcy in the state of Wisconsin.
Chapter 13 bankruptcy helps people put together a fair plan to repay their creditors. It allows for people to keep most of their property during the repayment process, but might cause you to edit some of your payment contracts, interest rates and lengths of contracts to the creditors.
When you file for Chapter 13 bankruptcy you agree to pay a portion of your income to creditors using the Trustee’s Office for a period of 36-60 months. As you can see, this is a long-term commitment. Also know that the trustee and staff are not allowed to provide you any legal advice regarding Chapter 13 bankruptcy.
A plan cannot run for less than 36 months from the first month’s payment unless 100 percent of what is owed to the creditors has been paid. Depending on your financial circumstances, your plan could last as long as 60 months.
Once you determine a payment plan that you honestly can follow, be sure to submit all payments on time to the Trustee Office. All payments must be made using cashier’s check or money order. If payments are not made on time, the trustee could ask the court to have your Chapter 13 plan dismissed. If possible, have your payments deducted automatically from your paycheck. This increases the likelihood that your plan will be successful.
If you run into problems during your Chapter 13 bankruptcy, it could be possible to obtain a hardship discharge from the plan. This could be obtained due to a serious illness, disease diagnosis, traumatic accident, death, loss of wages, unemployment or unexpected expenses.
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