Do you know much about bankruptcy? If the answer is no, you’re not alone. Many people in Wisconsin are unfamiliar with the different types of consumer bankruptcy and their benefits.
Bankruptcy can help resolve the financial burden of unpaid debt. Chapter 7 bankruptcy can discharge all of your debt, but you are required to give up any property that is not exempt. Chapter 13 bankruptcy allows you to pay down your debt or part of your debt based on your income.
Both types of bankruptcy can help debtors get a fresh start. After filing for bankruptcy, creditors cannot collect debt from you until the bankruptcy filing is complete. This means your property cannot be repossessed during this process. This can be very beneficial for homeowners facing foreclosure. Bankruptcy can also stop wage garnishment and prevent your utilities from being turned off.
Creditor harassment can be a serious issue for many debtors. Filing for bankruptcy can prevent harassment and help debtors take legal action against creditors who violate federal laws.
It is important to note than bankruptcy cannot discharge certain debts or payments, including student loan debt, alimony, child support, certain taxes and any debts not listed on your bankruptcy petition along with other certain debts.
Due to the complex nature of filing for bankruptcy, it is best to work with a bankruptcy attorney. An attorney can help explore all of your options before any decisions are made. Getting out of debt is a goal for many people, but you need to carefully evaluate your specific situation to make sure your best interests and financial goals are protected.
