For those struggling with debt, chapter 7 bankruptcy can be just the life saver they need to get back on track. However, it is a big financial and legal step, and Wisconsin has a lot of laws on bankruptcy, so if you're considering filing for chapter 7 in Milwaukee, there are a few things you should know before you decide if chapter 7 bankruptcy is right for you.
Chapter 7 bankruptcy, when it works properly, can lead to the discharging, or cancellation, of a number of debts, including credit card bills, personal loans, or even negligence claims. However, it comes at a price. There's a reason chapter 7 bankruptcy is called liquidation bankruptcy. In order for the debts to be canceled, some kind of repayment has to be made to the creditors.
The money for this repayment comes from selling some of the debtor's assets, which can be everything from musical instruments to family heirlooms. During the chapter 7 process, the court appoints a trustee to the case to look over the debtor's assets and sell the valuable ones. However, not everything is fair game. Under Wisconsin laws, homes valued up to $40,000 cars not over $1200 in value and certain kinds of personal property are all exempt. This just scratches the surface of the law - for a full list of exempt items you should contact an experienced Milwaukee bankruptcy lawyer.
Wisconsin has joined other states in passing new bankruptcy laws that limit who can file a chapter 7 bankruptcy. Most people, whether single, married or in a business proprietorship, can file for chapter 7 bankruptcy. However, your application will be rejected if you've received a bankruptcy within the past six to eight years. It will also be rejected if you have enough money to work out a chapter 13 bankruptcy repayment plan.
If you are applying for a Milwaukee chapter 7 bankruptcy, you have several responsibilities during the four to five month period in which you are in bankruptcy. First, you must pass a means test to determine how much money you make as compared to that of the median family in your area. If you make less, then you are eligible for chapter 7. You must also receive financial counseling from a government approved counselor within 180 days before you file.
After filing and paying the fees, which is about $300 in Wisconsin, you must attend a 341 meeting with your creditors about thirty days after filing. The trustee assigned to your case asks you questions about your finances in front of your creditors and you must tell the truth. After that, the balance of responsibility is on the creditors and the trustee as they sell your property. This just barely scratches the surface, so if you are filing for a Milwaukee chapter 7 bankruptcy, you must consult a reputable, experienced bankruptcy law firm.
Author Resource:-
Nick Messe is president of Lead Frog LLC. In the Milwaukee and Waukesha area Michael Burr specializes in bankruptcy and debt relief services. Milwaukee Chapter 7 bankruptcy is an effective way to eliminate many types of debt and have a fresh financial start.
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