Wisconsin Bankruptcy Laws should be known by every resident of the state of Wisconsin. The United States Bankruptcy Code and the Wisconsin bankruptcy laws are followed during bankruptcy application and proceedings in the state of Wisconsin. For an individual, a married couple or a household head who plans to file for bankruptcy, it is crucial to make an informed decision. How do you do this? Read and familiarize yourself with the rules and provisions of bankruptcy protection. It is common knowledge that with the increasing rate of consumer credit an increasing rate of bankruptcy declaration is also imminent.
For debtors who have not made up their mind, a mandatory credit counseling education program might sway your decision. Although this is a court-mandated requirement before filing for bankruptcy, it also aims to offer debtors other options to avail when in a financial crisis. This counseling should be taken within a 180-day period before the formal bankruptcy petition. You cannot just attend any counseling program; the agency administering should be on the list provided by the US Trustee program.
If you have made up your mind, choosing between Chapter 7 and Chapter 13 is the next step. Chapter 7 or liquidation bankruptcy is the total eradication of dischargeable debts like credit card bills, medical payments, and personal loans. This process is done with the trustee’s supervision. It is his duty to take over the control of the debtor’s non-exempt assets and liquidates it. The proceeds from the liquidation will be used to pay off the outstanding debts you have. Any amount remaining after the pay off will be written off. Filing for this bankruptcy program won’t mean that you will lose all your properties. Exemptions like your house, cars, and personal belongings will still be yours after the proceedings. A list of exemptions is provided in this article.
An alternative bankruptcy program to Chapter 7 is Chapter 13 or debt reorganization bankruptcy. This program requires a repayment plan in which the debtor has to follow. This plan will also be devised by the debtor and requires the court’s approval. The creditor can contest the terms of the repayment plan but the final decision lies in the hands of the bankruptcy judge. Be that as it may, the trustee randomly assigned to your case will be in charge of distributing the funds you remitted monthly so that he can distribute this to each of the creditors. A repayment plan can last from 3 to 5 years depending on the debtor’s capacity to pay based on the monthly income.
Should you be made to choose between federal and state exemptions, pick one that suits best to protect your properties. Wisconsin bankruptcy laws have specified the following as exemptions:
• Your home for up to $40,000;
• A motor vehicle for up to $1,200;
• 75% of earned, but unpaid wages;
• Tangible properties like clothing, jewelry, books, firearms, animals, sporting goods worth up to $5,000;
• Business and farm property for up to $7,500;
• Social service payments; and
• Benefits like worker’s compensation, alimony and child support, federal disability insurance, and more.
The complexities of the bankruptcy process will leave your head spinning; it takes years to familiarize with the topic-by-topic discussion of each provision. A bankruptcy lawyer is a necessity in the application for bankruptcy.