I live in Wisconsin. What are my options for filing bankruptcy?

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Question:

I live in Wisconsin. What are my options for filing bankruptcy?

Answer:

Wisconsin bankruptcy is similar to bankruptcy in most other states, since it is primarily federal laws that govern bankruptcy proceedings. However, there are also some state specific rules as well. So, if you are declaring bankruptcy in Wisconsin because you can no longer handle your debts, it is imperative to know what your options are under both federal and state law.

Most private individuals have two main options for filing bankruptcy:

  • Chapter 7, or total liquidation bankruptcy, is an option for those who either make less than the median income in Wisconsin at the time of filing, or who pass a means test wherein they show that it is not possible with their income to do any debt repayment and still have sufficient cash remaining to live on out of their paychecks. If you file chapter 7, you are required to have most of your assets sold in a bankruptcy sale to generate money to repay some portion of your debt. The remaining portions of your debt are then forgiven
  • Chapter 13, or a wage earners bankruptcy, is your other option if you make too much for chapter 7. Here, there is no asset-seizure, but you do have to repay a portion of the total amount you owe in a repayment plan that lasts between 3 and 5 years.

If you are considering bankruptcy, it is a good idea to consult with a lawyer for help.

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