Confused Which Type of Bankruptcy To File?
Facing overwhelming debt? Wisconsin offers several bankruptcy options to help you get back on your feet. The most common bankruptcies in Wisconsin are Chapter 7 , Chapter 13 and Chapter 11. Each offers a different approach to managing your debts, and the best choice for you will depend on your specific circumstances.
In Milwaukee, Wisconsin, bankruptcy is a legal way for people and businesses to get help with debt they can’t pay. It lets them either wipe out their debts or create a plan to repay them, all under the protection of the court.
Short Summary
- Bankruptcy offers relief for overwhelming debt in Wisconsin. There are different types to consider (Chapter 7, 13, and 11).
- Chapter 7 Bankruptcy: This option wipes out most debts and provides a fresh start. It may require selling some assets to pay creditors.
- Chapter 13 Bankruptcy: This option allows you to create a repayment plan (3-5 years) to get out of debt and keep your property.
- Chapter 11 Bankruptcy: This option is primarily for businesses that need to restructure debt and stay operational while creating a repayment plan.
What is Bankruptcy?
Filing for bankruptcy is a legal way to get relief from debt you can’t pay. It can either wipe out your debts completely or give you time to catch up on payments. The idea is to give honest people a chance to start over financially.
In Wisconsin, they follow the same national rules for bankruptcy. It’s like a do-over for your finances, based on federal laws, not Wisconsin law. By going through bankruptcy, you can wipe out your debts and get a fresh start.
Will Bankruptcy Erase All My Debts?
Bankruptcy can erase many debts, like credit cards, unpaid utilities, medical bills, and personal loans. You can even get rid of your house or car loan, but you’d have to give up the house or car first.
Not all debts disappear in bankruptcy. Things like child support, back taxes, and student loans usually stick with you. You might be able to get rid of student loans, but it’s a tough case.
What are the Most Common Bankruptcies?
Filing for bankruptcy might seem scary. You might feel down because you can’t pay your bills. But instead of seeing it as a bad thing, think of it as a fresh start. Bankruptcy helps you deal with your debt in a way you can handle and rebuild your credit score. There are different types of bankruptcy, but the most common ones are Chapter 7, Chapter 13, and Chapter 11.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy wipes out most of your debt. You can usually keep your stuff, except for a few things depending on state and federal laws. A bankruptcy trustee will be assigned to your case to sell some things to pay back your creditors. Once you qualify and go through the process, a judge will approve your case and erase your debt. This means creditors can’t bother you about the forgiven debt anymore.
Am I Qualified For Chapter 7 Bankruptcy?
You can file for Chapter 7 bankruptcy if your family’s income isn’t too high. Here’s a quick way to check: add up all your income from the last 6 months and multiply by two. Then look at the income limits on the U.S. Trustee’s website. There’s also an online tool called the Quick Means Test you can try.
Even if your income is a bit high, you might still qualify for Chapter 7 by taking another test. In short, if you barely have any money left after bills to pay into a repayment plan, Chapter 7 bankruptcy might be an option for you.
What is Chapter 13 Bankruptcy?
More people file for Chapter 13 than Chapter 7. In Chapter 13, you make a plan to repay your debts over 3-5 years. Once you finish the plan, your debt is erased. This is good if you want to keep your house and other things you own. You can also get rid of some debts that can’t be erased in Chapter 7. After you follow your Chapter 13 plan for a while, the court will say your debt is gone.
Am I Qualified for Chapter 13 Bankruptcy?
Chapter 13 can be costly because it lets you keep more stuff. Many people can’t afford the monthly payment for Chapter 13. To qualify, you’ll need to pay the most out of these three things:
- Important bills you can’t get rid of in bankruptcy (like child support).
- The value of things you get to keep that wouldn’t be protected in bankruptcy.
- The money you have left after paying your bills each month.
What is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is mostly for businesses in debt. If your small business owes more than you can afford, Chapter 11 can help. It lets you keep your business open while you make a plan to repay your debts. The catch? You’ll have to share some control of your business with the court, creditors, or advisors there to help you get back on track. Even with less control, you get to keep your business running and hopefully turn things around financially.
Am I Qualified for Chapter 11 Bankruptcy?
There are specific rules for Chapter 11 bankruptcy in Wisconsin, used to get businesses back on track. Here’s what you need to know:
- Take a credit counseling class from a government-approved place within 6 months of filing.
- Gather your paperwork: This includes things like a list of your business’s stuff and debts, your income and expenses, how your finances got this way, and a plan to fix things.
- Stay open for business: Unlike other bankruptcies, your business can usually stay open while you work through the process.
These are the most common ways people in Wisconsin file for bankruptcy to get help with debt. While most common bankruptcies might seem easy from some articles, in reality, it is complicated. That’s why it’s a good idea to talk to a bankruptcy lawyer for help.
File The Right Bankruptcy Chapter Today!
Even though Chapter 7, Chapter 13, and Chapter 11 are the most common bankruptcies in Wisconsin, they can be confusing. Filing for any type of bankruptcy requires a lot of legal knowledge. The rules and steps involved are hard for most people to understand. That’s why it’s important to get help from an experienced bankruptcy attorney.
Miller & Miller Law, LLC can help you with your bankruptcy case. You don’t have to go through this alone. Our experienced lawyers will guide you every step of the way and tailor a plan to your specific situation.
We can help you with more than just the most common bankruptcies. We can also assist you with other legal issues, like finding ways to manage your debt without bankruptcy, lawsuits, injuries, and much more! Get a free case evaluation today and let’s achieve a brighter financial future!
