Bankruptcy is a way for citizens of the United States to wipe their debts clean or reduce their debt to a manageable level. It is not pleasant or easy but sometimes it is necessary. Hiring an experienced bankruptcy attorney can make it easier and less stressful. The laws and process are so complicated that unless you have an extremely straight forward simple case you have to have some help.

Due to recent changes in bankruptcy law you must lay out your financial situation so the court can decide if you qualify to file for Chapter 7 bankruptcy. This type of bankruptcy is a total liquidation of nonexempt assets. Exempt assets in the state of Wisconsin include a home with no more than $40,000 in equity, insurance benefits, pensions, personal property and equipment needed for your livelihood. You and your attorney can decide according to Wisconsin law whether you want to abide by Wisconsin or Federal exemptions. When you file for Chapter 7 your case is turned over to a trustee who will liquidate your assets and distribute the funds to your creditors. If you have no assets and a low income, you will likely be able to file for Chapter 7 bankruptcy relief. If you have a steady income and assets such as a home and a vehicle you would like to keep you can file for Chapter 13. This type of bankruptcy allows you to stop foreclosure or repossession and gives you a chance to make up the payments owed. The court will decide based on your income and basic needs what amounts can go to your creditors every month over a 3-5 year period. You will then have to keep up with your payments until the bankruptcy is discharged. For some people you will not be allowed to file Chapter 7 due to your income being too high so your only other option is Chapter 13. There are also Chapters 11 and 12 but they are for family farmers, businesses or people with unusual amounts of debt. Businesses will often use this type of bankruptcy in order to reorganize their debt and stay up and running. Once you have completed your required classes or your repayment plan your bankruptcy will be discharged. This generally takes up to four months after filing Chapter 7 and upon conclusion of repayment for Chapter 13. Set up a consultation with a bankruptcy attorney in your area today. You can have the fresh start you deserve and a little peace of mind.

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