Wisconsin Bankruptcy Law

The Milwaukee daycare operator who previously pled guilty to hiding $700,000 from the bankruptcy court was earlier this week sentenced to six months in jail. The man and his now-estranged wife had apparently originally filed a Chapter 13 bankruptcy in Milwaukee in 2001 but failed to disclose income received from the state’s taxpayer-subsidized child-care program. For filing false bankruptcy information, a federal judge sentenced the man to six months in prison, plus two years of probation, and ordered him to pay nearly $40,000 in restitution to the government. The man’s spouse faces sentencing next month. According to the Milwaukee Journal Sentinel, "Federal, state and local authorities are investigating dozens of child-care providers for possible fraud. They have not indicated whether the [couple] are among their targets."

Whether it involves a Chapter 7 or Chapter 13 bankruptcy in Milwaukee, the process is set up for ordinary, hardworking folks who legitimately need debt relief in Wisconsin. Let’s hope this incident is very much the anomaly. The case, however, reaffirms that no one considering a personal bankruptcy in Milwaukee or anywhere else should conceal any financial data. As every qualified and experienced Wisconsin bankruptcy lawyer will admonish his or her clients, "creative bookkeeping" when it comes to filing the bankruptcy petition is absolutely forbidden. The defendant is this case could have been jailed for up to 16 months under federal sentencing guidelines.

Remember that horrific accident in May 2009 when high winds caused the Dallas Cowboys’ practice facility to collapse? Well, claiming to be insolvent, the Canadian company that built the facility has filed that country’s equivalent of a Chapter 11 bankruptcy and laid off virtually its entire workforce. About a dozen persons were injured in the incident, including one Cowboys’ employee who is paralyzed from the waist down. That man, along with another seriously injured person, filed suit against the company and its Pennsylvania subsidiary for gross negligence. There are additional lawsuits flying back and forth as would be expected in an tragic incident of this magnitude. It remains to be seen as to how the courts will allocate liability.

For various reasons, many debtors–including those seeking debt relief in Wisconsin–have sought bankruptcy protection to avoid paying court judgments. In general, a business or individual can write-off a judgment through the bankruptcy process under the bankruptcy laws of Wisconsin and other jurisdictions. A creditor can, however, ask the bankruptcy judge to exempt the judgment from the bankruptcy discharge. As always, it depends upon the circumstances. It’s not always about some shady businesses or individuals who want to get off the hook for their alleged misdeeds, though. Sometimes even for persons who are operating in good faith, the amount of a lawsuit judgment is so large that bankruptcy provides the only reasonable alternative.

We live in a litigious society, but at least we no longer have “debtor’s prisons” that existed back in the 19th century or thereabouts. However, perhaps you are a defendant in a lawsuit that may result in huge court-ordered damages that may exceed any insurance coverage that you might have. In this kind of scenario, it may be worth pre-emptively reviewing your options for an individual bankruptcy in Wisconsin with a Wisconsin bankruptcy lawyer. Car accident liability, as one example, can be devastating financially if insurance won’t cover all the costs. So it is important to speak with a bankruptcy attorney in Milwaukee or surrounding area to discuss whether or not the judgment can be discharged; it may be one way for you to resolve the matter with minimal financial repercussions to you and your family.

Bankruptcy isn’t for everyone, but it could be one of the viable alternatives for those who have fallen on very hard times. In a previous post, we outlined five reasons why those desiring debt relief in Wisconsin would pursue a consumer bankruptcy in Milwaukee or in a surrounding community. But there are also understandable factors that might make a hardworking person hesitant seeking bankruptcy protection. These include..

    * Not wanting to let anyone down. Under the best of circumstances, the honorable approach is to keep faith with all your creditors and pay your bills in full. However, it may be in the best interests of your and your family to obtain a fresh start before your debt load and financial challenges become even more unmanageable.
    * Keeping things private. While most court documents are public, unless you are some kind of celebrity, it is very unlikely that an individual bankruptcy in Wisconsin will generate any undue publicity. Creditors on your outstanding bills and anyone accessing your credit report will have notice of the bankruptcy, however.
    * Being thrown out in the street. Many debtors fear being stripped of all their property, but even in Chapter 7 liquidation in most instances allows the consumer to keep his/her home, car, and other necessities.
    * Changes in the law. We have previously discussed various nuances of the 2005 bankruptcy amendments this blog; despite more red tape in the bankruptcy laws in Wisconsin, there is no significant obstacles in the way of individuals qualifying for either a Chapter 7 or Chapter 13 bankruptcy in Milwaukee.
    * Legal costs. While legal expenses (what the attorney charges to handle your case along with bankruptcy court filing fees) must usually paid up front, a reputable and experienced Wisconsin bankruptcy lawyer will present you with a reasonable fee schedule that won’t cost you and arm and a leg.

If massive debt has taken control of your life, perhaps for reasons beyond your control, it may be time to review your options and obtain answers to your Wisconsin bankruptcy questions and concerns with a qualified debt consolidation lawyer.

Virtually everyone loves to pop in a movie into the DVD player and make some popcorn. But despite the immense popularity of home movie viewing, there is trouble in the video rental industry. Struggling with about $1 billion in debt, Blockbuster Video admits it may be on the brink of bankruptcy unless there is a turnaround soon. As one bid to stay afloat, the company recently announced a new application for sending on-demand video to certain smart phones. But according to one analyst, “Blockbuster is trying to keep itself from bleeding to death, but they’re putting on a lot of Band-Aids.” Blockbuster ran into cash-flow difficulties in part because it was apparently unable to compete with online-only DVD rental provider Netflix as well as Redbox rental kiosks. Blockbuster has already shuttered about 600 of its brick-and-mortar stores in the U.S. (perhaps including the one in your town), with more to follow. The Hollywood Video franchise already filed for Chapter 11 protected in February and plans to eliminate all its stores. Blockbuster has fallen to about 30 cents a share on the stock market.

Perhaps this means that it is not just bad economic conditions that can force a business (or individual) into bankruptcy. Changes in technology or consumer preference can also spell doom for some enterprises that are unable to keep up. The next step is often concerted efforts to obtain fundamental debt relief in Wisconsin or whatever the business might be located.

As we suggested in the previous post about the Wisconsin auto dealer’s financial woes, bankruptcy protection can be a way forward for those struggling consumers and business owners from all economic strata.  If you operate even a small or midsize business that has come upon hard times and can no longer handle its debt load, a Chapter 13 bankruptcy in Milwaukee may be worth considering among a menu of options. If a Milwaukee small business bankruptcy seems likely, contact a qualified and experienced Wisconsin bankruptcy lawyer for guidance.

Wisconsin regulators have taken control of some of the bad loans of bond insurer Ambac Financial Group, and the company may seek bankruptcy protection under the bankruptcy laws of Wisconsin. As reported in various media outlets, last week the Wisconsin Insurance Commission “ordered Ambac’s main operating subsidiary, Ambac Assurance Corp… to set up a segregated account for policies related to risky structured finance transactions. Those include the credit default swaps and residential mortgage-backed securities held by major Wall Street banks that helped to accelerate the national financial crisis.” Wisconsin Insurance Commissioner Sean Dilweg said that the company is “financially hazardous” and that moving the approximately $63 billion in “toxic assets” to a segregated account was done to protect the rest of the company. The company indicated that it may have to restructure its debt through bankruptcy, presumably by pursuing debt relief in Wisconsin. For more information, go to the Ambac Policyholders Information Center.

President Calvin Coolidge once said that “the chief business of the American people is business.” When the so-called housing bubble burst, however, the result was huge negative ramifications for the big business. But plummeting real estate values have also harmed homeowners on an individual basis. This has prompted many hardworking consumers to consider filing or going ahead with an individual bankruptcy in Wisconsin. If, for example, the equity in your home has evaporated to your severe detriment, you might want to consult with a debt consolidation lawyer. While declaring bankruptcy should never be taken lightly, a Wisconsin bankruptcy lawyer can present you with some sound options for financial renewal.