Bankruptcy Provides Immediate Relief From Debt
You Can Expect Relief As Soon As Your Case Is Filed
Once you file for either Chapter 7 or Chapter 13 bankruptcy, an injunction known as the “automatic stay” goes into effect. The automatic stay requires creditors to stop all collection actions, including lawsuits. Banks and mortgage companies must halt foreclosure proceedings. While the stay is temporary and may be challenged, it can help you avoid home eviction or the repossession of your cars and appliances.
At Miller & Miller Law, LLC, our bankruptcy lawyers can review your financial situation and discuss the best options available to you for getting out from under debt and saving your home. We will guide you through the bankruptcy process and give you tips on rebuilding your credit once your bankruptcy is complete.
If you’re receiving calls from collection agencies and stern letters from creditors or your bank, contact Milwaukee, Wisconsin, bankruptcy attorneys at Miller & Miller Law, LLC, today to schedule an appointment and discuss your situation. We can help you with debt negotiation and wage garnishments.
Filing For Chapter 7 Bankruptcy
In order to file for Chapter 7 bankruptcy you must first qualify according to a means test. Generally speaking, if your monthly income is less than Wisconsin’s mean monthly income for houses of a similar size, you can file under the terms of Chapter 7.
What gets discharged? If you qualify, your credit card balances, loans and other forms of unsecured debt will be discharged. Depending on your situation, you may also be able to discharge tax debt as well.
What can I keep? There is an exception for a homestead and other kinds of property. How your property is handled will depend on its value and what is covered by the exemption.
What if I am behind on mortgage payments? After having your unsecured debt wiped clean, you may have enough disposal income to bring your mortgage current and maintain monthly payments. If not, you may be able to convince your bank to modify your loan; however, loan modifications are not part of Chapter 7 bankruptcy, nor are banks required to offer them after you’ve filed for bankruptcy. Depending on the amount owed, you could pursue a Chapter 13 bankruptcy instead.
Filing For Chapter 13 Bankruptcy
If you don’t meet the means test requirements for Chapter 7 bankruptcy, you will likely have to file under Chapter 13. Chapter 13 bankruptcy is essentially a reorganization of your unsecured debt. Often referred to as a “wage earners bankruptcy,” you will be required to submit a repayment plan for approval by the court.
Typically, under the terms of Chapter 13, you must make payments to repay a portion of what you owe over a three- to five-year period. While your debts will not be automatically discharged as in Chapter 7, you can include debt on cars, appliances and loans in your repayment plan. As a result, it’s easier to avoid foreclosure and the repossession of your goods under Chapter 13.
Once a bankruptcy judge reviews your repayment plan and approves it, a trustee may be appointed to distribute your payments to creditors per the terms of your Chapter 13 plan. While creditors can object to the terms of a proposed plan, once a judge accepts it there is very little they can do.
What to do if you’re getting garnished
Contact Wisconsin Bankruptcy Attorneys At Miller & Miller Law, LLC
If monthly bills and calls from creditors have you worried about losing your home, contact the Wisconsin bankruptcy attorneys at Miller & Miller Law, LLC. We can review your situation and explain the best options available to you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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