Thousands of people file for bankruptcy every year in Wisconsin. It is a situation that many do their best to avoid but simply cannot when they find themselves in a difficult spot. Bankruptcy is not the end of the world. In fact, it is an option that many people use to turn their lives around financially so they can get some breathing room. Repairing your finances by yourself, over a period of time, can take years. The stress that comes with being in debt can be overwhelming. Let us take a look at which bankruptcy option is better for you in today’s post.
All About Chapter 7 Bankruptcy
There are not many options out there for someone looking to file for bankruptcy in Wisconsin. Individuals have to choose between Chapter 7 and Chapter 13, and that is it. When you choose to file for Chapter 7, you theoretically have to hand all of your assets to someone who is known as a trustee. The trustee is then responsible for liquidating those assets in order to pay the creditors. This is not usually the case, though, because the assets of the individual may not be worth enough to cover the debts.
The individual filing for Chapter 7 simply has his or her unsecured debts discharged, which eliminates those debts. In order to be eligible to file for Chapter 7 in Wisconsin, you need to have very little or zero disposable income to your name. This means that you cannot have assets or money available to use to repay your debtors. The majority of people who file for Chapter 7 bankruptcy typically do so because they simply are unable to repay the debt they have accrued.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is an option for individuals who are able to repay some of the debt they have to their name, but usually not all of it. This is the bankruptcy option in which the debtor agrees to a repayment plan. The unsecured debts of the debtor will be what is repaid. The debtor will only have to repay what he or she can afford to repay, so long as the creditors are receiving the money they would have received if the debtor filed for Chapter 7 bankruptcy.
Quite possibly the biggest advantage of filing for Chapter 13 bankruptcy is that the debtor can keep his or her home. The debtor will not have to sell the home and use the money to repay creditors. If the debtor is behind on paying the mortgage, he or she will not have to worry about the mortgage company demanding repayment. Debt repayment with Chapter 13 gives the debtor close to five years to get back on track instead of only four to six months, which is the typical deadline set forth by the mortgage company.
Contact an Experienced Attorney Today
It is important that if you are struggling to pay your bills and there is no end in sight that you consider filing for bankruptcy. Contact an experienced attorney from the team of Moen Sheehan Meyer, Ltd. in Wisconsin today to schedule a consultation. Call the office at 608-784-8310 to begin the process.