Speak to an Experienced Wisconsin Bankruptcy Lawyer about Your Financial Situation

A Little Chute law firm working to get your finances back on track

Recent years have seen an increased number of Americans turn to bankruptcy as a means of getting out of debt. Bankruptcy can be a very technical and fearful prospect for many people, but also a very beneficial one. If you are considering turning to bankruptcy as a way to address mounting debts, speak to an experienced attorney first, before settling on course of action.

Van Hoof & Schneider Law Firm guides clients through the bankruptcy process and helps them get out of debt. Do not be afraid of considering bankruptcy as an option if you have been affected by divorce or the economic downturn. We can help put your fears to rest.

Chapter 7 Bankruptcy may be the right option for you

Chapter 7, sometimes called “liquidation bankruptcy,” is perhaps the most common form of bankruptcy for individuals and small businesses. Under Chapter 7, most debts and debt collection practices are halted while a debtor’s assets are tallied and distributed. At the end of a proscribed period, the debtor has their debts discharged, and they are given a “fresh start.”

To obtain a discharge from eligible debts, you must follow several important steps, including:

• Filing a bankruptcy petition — The process begins by filing a bankruptcy petition with a federal bankruptcy court. The petition lays out your assets, such as income and property, and your debts. The petition should also include recent tax returns.
• Supplying a list all creditors — Filing for bankruptcy requires a complete list of all individuals and companies to which you owe money, along with the nature of the debt.
• Noting exempt property — Some personal property is exempt from bankruptcy, and not included in assets used to satisfy a debt. Real property, such as a house, and other items necessary to support your family are exempt from a bankruptcy proceeding.

There are other requirements as well, including undergoing credit counseling and meeting with a trustee overseeing the process. If the petition is approved, an order to stay existing debts is issued by the court. The court uses your non-exempt assets to satisfy those debts, after which they are discharged and you have a “fresh start.”

Wisconsin has a valuable bankruptcy alternative

Wisconsin’s Chapter 128 is a valuable tool for Wisconsinites seeking to get out of debt. Under this option, someone in debt can get back to financial health through a repayment plan filed with the court. In operation, it is similar to filing for federal bankruptcy under Chapter 13.

Wisconsin’s Chapter 128 does not discharge all debts and liquidate certain assets, as federal Chapter 7 bankruptcy does. It is considered to be less invasive than filing for federal bankruptcy, and perhaps simpler as well. Under the chapter, a court stays all debts and debt collection practices, and you must file a repayment plan with the court that outlines how you intend to repay creditors. It has several significant differences from federal bankruptcy and a Wisconsin court cannot directly discharge your debt. However, it is an important tool that one can consider when looking for debt relief options, and our bankruptcy attorneys can explain more.

Contact us to learn more about bankruptcy in Wisconsin and other debt solutions

Van Hoof & Schneider Law Firm assists and guides our clients through the bankruptcy process, helping them to get out of debt and move forward. Our goal is to ensure you understand the requirements and receive the most favorable resolution possible. We are conveniently on Main Street in Little Chute. Contact us at 920.788.3543 or online to schedule a free 30-minute consultation.