What You Should Know About Chapter 7 Bankruptcy
Kenosha Bankruptcy Attorneys - Serving Southeastern Wisconsin
In a Chapter 7 bankruptcy — also known as a "liquidation" or "straight" bankruptcy — most unsecured debts are completely discharged. In return, you are required to forfeit any property that is unsecured and not "exempt" from liquidation. Wisconsin law allows reasonably liberal exemptions under either State or Federal law. While most people can discharge all of their unsecured debts and keep all of their property, if you own expensive luxury items or several vehicles, boats, campers or RVs, you may not be able to keep them. At Lakelaw, we will help you claim every exemption to which you are entitled so that you can keep as much property as possible.
Contact Lakelaw online or call 262.694.7300
If most of your debts are consumer debts, in order to be eligible for Chapter 7 bankruptcy, you first have to pass what is called a "means test." The means test is a complicated method of measuring your income and expenses. In general, if your monthly median income is significantly more than the average monthly median income of a household of a similar size in the state of Wisconsin, you will not be eligible to file under Chapter 7. For example, if you are a single individual making $100,000 per year, you probably will not be eligible for Chapter 7 bankruptcy. Unfortunately, rules of how to properly complete the means test are being interpreted differently by different courts, and therefore, it is very important for the means test to be completed correctly. At Lakelaw, we have the knowledge of the latest court interpretations of this complicated test. We can evaluate your financial situation and determine if you are eligible to file for Chapter 7 bankruptcy. However, even if you are ineligible for Chapter 7, you should be eligible to obtain relief in a Chapter 13 bankruptcy.
What Debts Chapter 7 will not Discharge
While most debts are dischargeable under Chapter 7 bankruptcy, some are not. A short list of these includes:
- Domestic support obligations (alimony or child support)
- Certain tax liabilities
- Student loans (except in cases of extreme hardship)
- Debts incurred through fraud
- Debts incurred through intentional and malicious injury to another
While a Chapter 7 bankruptcy will likely discharge your mortgage debt, it cannot stop foreclosure proceedings at the same time. For that, you would need to file a Chapter 13 bankruptcy instead.
Our Attorneys Will Guide You Through the Complex Bankruptcy Process
There are many eligibility requirements and exceptions faced when filing for bankruptcy. In order to find the best option for you it helps to have a lawyer who understands all of them. At Lakelaw, our bankruptcy attorneys are competent and strong advocates for our clients. David Leibowitz has served as trustees in Chapter 7 bankruptcies since as early as 1987.
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If you are facing harassment from creditors and bill collectors who demand you to pay them money that you just do not have, do not wait any longer before taking action. Contact Lakelaw today. Contact us online or call 262.694.7300 to schedule a consultation. At Lakelaw, in Kenosha, you do not need to go to Milwaukee to get "big city" service and knowledge.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
