Don’t Let Nondischargeable Debts Hold You Back From A Fresh Financial Start
If you’re struggling with nondischargeable debts in Chapter 13 in Wisconsin and considering Chapter 13 bankruptcy as a solution, it’s important to understand which debts can be discharged and which cannot. Chapter 13 bankruptcy can provide relief for many types of debt, but certain debts are considered nondischargeable under Wisconsin law, meaning they cannot be eliminated through bankruptcy. Understanding these debts and their consequences is crucial to making informed decisions about your finances and legal options.
At Miller & Miller Law, LCC, our knowledgeable attorneys have helped countless clients navigate the complex landscape of Chapter 13 bankruptcy in Wisconsin. We understand the nuances of Wisconsin bankruptcy law and can help you determine which debts are dischargeable and which are not. Our team will work with you to develop a personalized strategy for dealing with your nondischargeable debts and ensuring that your Chapter 13 bankruptcy is as successful as possible.
Contact Miller & Miller Law, LLC today to schedule a free case evaluation with one of our experienced bankruptcy attorneys.
What is a Nondischargeable Debt in WI?
Nondischargeable debts in Chapter 13 bankruptcy are debts that cannot be eliminated or discharged through the bankruptcy process. These debts must still be repaid even after the completion of the bankruptcy case. Examples of nondischargeable debts in Wisconsin include certain taxes, student loans (in most cases), child support and alimony, debts incurred through fraud, fines and penalties imposed by government agencies, and other debts as outlined by Wisconsin bankruptcy law.
It’s important to note that just because a debt is nondischargeable does not mean it cannot be included in a Chapter 13 repayment plan, and working with an experienced WI bankruptcy attorney can help develop a strategy to manage these debts over time.
What are the Examples of Nondischargeable Debt?
When your Chapter 13 plan is finished, some unsecured debts that are still owed are not discharged. Regardless of your circumstances or income, some bills survive Chapter 13 bankruptcy, and here are the following.
- Certain Taxes: Some types of taxes, including income taxes, payroll taxes, and property taxes, are considered nondischargeable in Chapter 13 bankruptcy. However, certain older tax debts may be eligible for discharge under certain circumstances.
- Student Loans: In most cases, student loans cannot be discharged through Chapter 13 bankruptcy. However, in some circumstances, you may be able to discharge student loans if you can demonstrate “undue hardship.”
- Child Support and Alimony: Debts related to child support and alimony are nondischargeable in Chapter 13 bankruptcy. These obligations must be fully repaid under your Chapter 13 repayment strategy. Any sum that remains after you finish your plan is not dischargeable, even though you are not required to pay back all of the support you owe to a government agency charged with collecting it while your plan is in effect.
- Debts Incurred Through Fraud: Debts that were incurred through fraud, including credit card debt obtained under false pretenses, cannot be discharged in Chapter 13 bankruptcy. When assessing whether these debts are dischargeable in Chapter 13 bankruptcy proceedings, bankruptcy courts use the same process as they do in Chapter 7 cases: if the creditor does not appear and prove fraud to the bankruptcy court, the debt will be discharged.
- Fines and Penalties: Fines and penalties imposed by government agencies, such as traffic tickets or criminal restitution, are generally nondischargeable in Chapter 13 bankruptcy. The fine itself, however, is not dischargeable if the government entity imposed it because you received more benefits than you were entitled to as a result of your failure to disclose income or for any other improper behavior.
Your excess payment is dischargeable like any other unsecured obligation. The overpayment, however, may not be dischargeable if the agency initiates a lawsuit in court, alleging that you received it through deception.
Chapter 13 bankruptcy can often provide a structured and manageable way to repay these debts over time. However, it’s important to work with a Wisconsin bankruptcy attorney to develop a strategy for dealing with your nondischargeable debts and ensure that you are able to successfully complete your Chapter 13 repayment plan.
What are the Debts that are Dischargeable?
There are many types of debts that can be discharged through Chapter 13 bankruptcy in Wisconsin. Some examples of dischargeable debts under Chapter 13 bankruptcy in Wisconsin include:
- Credit card debt
- Medical bills
- Personal loans
- Utility bills
- Past-due rent or mortgage payments
- Debts from vehicle repossessions or foreclosures
- Business debts
- Civil court judgments (except for those related to fraud)
- Debts related to accidents, such as personal injury claims
- Unsecured debts from lawsuits, such as breach of contract claims.
It’s important to note that not all debts can be discharged through Chapter 13 bankruptcy, and the specific debts that can be discharged will depend on your individual circumstances. Working with a Chapter 13 bankruptcy attorney from Miller & Miller Law, LLC can help you determine which debts can be discharged and develop a personalized strategy for managing your finances during and after the bankruptcy process.
Are there any Other Options for Addressing Nondischargeable Debt?
Here are the options and ways to address nondischargeable debts or claims in Wisconsin outside of Chapter 13 bankruptcy. Here are a few examples:
- Negotiating with Creditors: In some cases, creditors may be willing to negotiate a payment plan or settlement for the debt. You can work with an attorney to negotiate with the creditor and come up with a repayment plan that works for both parties.
- However, debt settlement involves negotiating with creditors to settle your debt for less than the full amount owed. While debt settlement can be a viable option, it may negatively impact your credit score and result in tax consequences.
- Debt Management Plans: Some credit counseling agencies offer debt management plans that can help you repay your debts over time. With a debt management plan, you make one monthly payment to the credit counseling agency, and they distribute the funds to your creditors.
- Asset Liquidation: If you have assets that can be sold or liquidated, you can use the proceeds to repay your debts. However, it’s important to carefully consider the potential consequences of liquidating your assets, as this may not be the best long-term solution for managing your debts.
- Legal Defense: If you are facing a nondischargeable debt related to a lawsuit or judgment, working with an attorney to mount a legal defense may be a viable option. An experienced attorney can help you assess the strength of the case against you and develop a defense strategy that protects your interests.
Working with an attorney can help you understand your options and develop a personalized strategy for managing your finances and debt obligations.
Why Do I Need a Chapter 13 Bankruptcy Attorney in Wisconsin?
There are several good reasons to work with a Chapter 13 bankruptcy lawyer from Miller & Miller Law, LLC in Wisconsin when dealing with nondischargeable debts. Here are a few:
- Nondischargeable debts can be complicated, and working with an experienced attorney can ensure that you understand your legal options and obligations. Our attorneys have years of experience working with clients in Wisconsin and can provide the legal expertise you need to manage your nondischargeable debts effectively.
- Dealing with nondischargeable debts requires a personalized strategy that takes into account your individual circumstances. Our attorneys can help you develop a plan for managing your debts, negotiating with creditors, and protecting your assets.
- Our attorneys have experience negotiating with creditors to help our clients manage their debts effectively. We can work with your creditors to develop a repayment plan or settlement agreement that works for your unique situation.
- If your nondischargeable debts are related to a lawsuit or judgment, our attorneys can represent you in court and provide a strong legal defense. We have the experience and knowledge necessary to protect your interests and ensure that your rights are protected.
- Working with an experienced bankruptcy attorney can improve your chances of success when dealing with nondischargeable debts. Our attorneys can help you develop a plan that minimizes the impact of nondischargeable debts on your finances and protects your long-term financial health.
At Miller & Miller Law, LLC, our attorneys are committed to providing high-quality legal representation to clients in Wisconsin. If you are struggling with nondischargeable debts, we can help. Schedule a free case evaluation and learn more about how we can assist you with your bankruptcy case.
Call our Wisconsin Bankruptcy Attorney Now!
If you are dealing with nondischargeable debts, it is especially important to work with an attorney who can provide legal expertise, develop a personalized strategy, negotiate with creditors, and represent you in court. At Miller & Miller Law, LLC, our attorneys have the knowledge and experience necessary to manage your nondischargeable debts effectively and protect your long-term financial health.
We understand that dealing with debt can be overwhelming, and our attorneys are committed to providing personalized, compassionate legal representation to every client. We will work with you to develop a plan that meets your unique needs and helps you achieve a fresh financial start.
If you are struggling with debt in Wisconsin, don’t wait any longer to seek help. Contact Miller & Miller Law, LLC today to schedule a free case evaluation and learn more about how we can assist you with your bankruptcy case.