Who can qualify for Chapter 13 bankruptcy in Wisconsin?

The eligibility requirements for Chapter 13 bankruptcy in Wisconsin are numerous and a debtor must meet them in order to file. Chapter 13 bankruptcy is specifically for the group of debtors known as "wage earners." This means that to file for Chapter 13, you must have a steady income either through a traditional job or through self employment. Stockbroker and other brokers are not eligible to file for Chapter 13 protection in Wisconsin.

Secured and Unsecured Debt Limitations

In order to be eligible to file for Chapter 13 bankruptcy in Wisconsin, there are secured and unsecured debt limitations that must be met. Those who have secured debt that is in excess of $1,010,650 (e.g., home, automobile, etc.) are not eligible to file for Chapter 13 bankruptcy. In addition, if your unsecured debt is in excess of $336,900, you will also not be eligible.

Tax Filing Requirements

Those who are considering filing for Chapter 13 bankruptcy in Wisconsin are required to have filed at least four years of both state and federal tax filings. These tax returns must be presented as proof of filing in order to be eligible for Chapter 13 bankruptcy filings in Wisconsin.

Debts that May be Included

Those who are self employed who meet the other criteria may be able to include debt from business expenses in a Chapter 13 bankruptcy filing in Wisconsin. Medical expenses may also be included in a Chapter 13 filing. It is important that a debtor understands the limitations of filing for Chapter 13, as not every person who files will be eligible.

Getting Legal Help

Chapter 13 bankruptcy in Wisconsin is very confusing and the rules are very stringent. It is important if you are considering filing for bankruptcy, you hire a qualified legal professional to help you navigate the rules. Chapter 13 can help you reorganize your payments so that you can afford to pay off your debts.