Wisconsin Bankruptcy Law

In a previous blog posting, we discussed the means test and the median family income as they relate to an individual bankruptcy in Wisconsin. The median family income as determined by the federal government varies from state to state and also depends on the size of your family.

The means test in part determines whether a debtor can file a Chapter 7 bankruptcy in Milwaukee (or elsewhere). Or, in the alternative, a Chapter 13 repayment plan. In other words, the means test is a line in the sand a between eligibility for a Chapter 7 liquidation or Chapter 13. In short, it can have huge financial ramifications about what, if anything, you need to pay back in a consumer bankruptcy in Milwaukee.

Before a debtor passes or fails the means test, various items that can be deducted from your income under the bankruptcy laws in Wisconsin. Although each situation has unique aspects, necessary expenses can include taxes, union dues, health and disability insurance, child care expenses, energy costs in excess of the national average, and job-related education, among others. To establish these expenses to the satisfaction of the bankruptcy court, you’ll need organized, valid records for at least six months prior to the bankruptcy filing.

Determining all the applicable exemptions and expenses in a bankruptcy case is a job for a trained professional. Millions of Americans file bankruptcy every year for one reason or another. Lawmakers created the bankruptcy code to help protect honest, hard-working people from suffering through their financial disasters. At the same time, the laws can be very tricky and technical, so it is essential to obtain guidance and input from an experienced Wisconsin bankruptcy lawyer. Do not go it alone.

Some interesting but not surprising findings emerged from a December 2009 survey of about 1000 web surfers looking for bankruptcy information on the Internet. Among the provided choices, job loss or wage reduction came in as the top economic factor influencing them to consider bankruptcy protection; 57% of the respondents chose that category. The credit crunch was the next most important factor (32%), following by increased mortgage payments (6%), gas prices (3%) and cost of food (2%). Also, more than 20% of the respondents said they knew at least one person who has considered bankruptcy in the past year.

While a survey of this limited scope is far from conclusive, it does provide food for thought for those who might be in need of serious debt relief in Wisconsin. The end of the year is often a time for reflection and thinking about a new beginning in general. Like many Americans, if you find yourself in a situation where it’s become harder and harder to dig out of debt, especially after getting laid off or working reduced hours, an individual bankruptcy in Wisconsin may be among the options worth considering. In this challenging economic climate, a personal bankruptcy in Milwaukee or elsewhere in the state is no longer just a sign of an irresponsible lifestyle or something that only happens in other households. Instead, it may be an effective way to continue to cover a family’s basic living expenses and needs while rebuilding credit and laying the groundwork for your financial future.

The dust will soon be settling as the 2009 holiday season winds down. Perhaps contacting a debt consolidation lawyer to go over your financial alternatives and get answers to any of your Wisconsin bankruptcy questions may be a way to start the new year off in a positive direction.

While it’s difficult for everyday Wisconsin residents to relate to jet-setting celebrities, the situation that Hollywood star Nicolas Cage finds himself in could be instructive for all of us. Because of international spending sprees involving multiple mansions, yachts, and cars, the otherwise highly paid actor and Oscar winner is said to be broke and teetering towards bankruptcy. In addition to creditors coming after him, Cage owes $6 million in back taxes to the IRS, and is separately squaring off in court against an ex-business manager and an ex-girlfriend over money matters.

Bankruptcy was set up primarily for hardworking, down-to-earth citizens to get out of debt and start over on a more productive path. Usually lavish celebrity level spending or risky investments aren’t part of it. Unlike Cage or others in that rich circle, most ordinary consumers consider bankruptcy help in Milwaukee or throughout the state because of such events like being thrown out of work, divorce, excessive credit bard bills, huge medical costs, legal judgments, or becoming upside down on a mortgage or car loan. In short, things that are often beyond an individual’s control. With that in mind, during these recessionary times, and even during the holiday season, monitor your spending carefully. Make good choices; concentrate on the essentials and avoid impulse buying. And don’t necessarily assume that your job is locked in; budget accordingly. You don’t have to be a celebrity to quickly get in over your head without sufficient income.

Despite your best efforts, if you simply can’t make ends meet, act quickly. Cage as well as other persons regardless of income bracket find out that overdue bills simply don’t go away. Creditors can become very aggressive very fast. Contact a debt consolidation lawyer with your questions about the bankruptcy laws in Wisconsin and how to manage your debt. It may be in your best interests, and the best interests of your family, to consider an individual bankruptcy in Wisconsin depending upon your specific circumstances and obligations.

For really hard-core shoppers, the intense gift-buying season starts as early as dawn on “Black Friday,” otherwise known as the frantic day after Thanksgiving. While holiday purchasing is a fact of life, spending should be kept within reason, especially in these stressful times when many consumers find themselves seriously considering an individual bankruptcy in Wisconsin. Yet some consumers already in hock up to their eyeballs apparently take the opposite approach. Some of these risk-takers already on the verge of going Chapter 7 are tempted to max out their credit cards over Christmas under the assumption that they can get rid of the debt in court in January. But piling up new debt when you already know a bankruptcy is on the horizon is unethical. Plus, the fine print of the bankruptcy law says, among other things, that certain consumer debts of $500 or more owed to a single creditor and incurred within three months of a bankruptcy filing are presumed to be not dischargeable; that is, they must be paid in full instead. The bankruptcy laws in Wisconsin also frown upon debts incurred under false pretenses–which could include a pre-bankruptcy spending spree. As a result, a creditor may fight tooth and nail to get paid in full for those debts that fall within the 90-day legal window. So, excessive spending in this context can be a lose-lose proposition that can postpone a debtor’s ability to seek bankruptcy protection for months down the road. If you are thinking about a personal bankruptcy in Milwaukee or elsewhere, don’t jeopardize your right to seek debt relief by making any false moves prior to filing. The bankruptcy laws are designed to help responsible persons facing difficult circumstances get back on their feet. A qualified bankruptcy attorney can explain which of your debts are legitimately dischargeable in compliance with the law and advise how you can manage your bills going forward. More importantly, a debt consolidation lawyer can work with you more effectively now, rather than later, to answer your Wisconsin bankruptcy questions and help you get a fresh start.

Filing for bankruptcy may be the biggest step you take to get back on top of your financial situation, but as with everything, you may run into a few issues afterward.  The best approach is not to panic, but to be smart about what you do next.  If you’ve found bankruptcy help in Milwaukee, chances are that you’ve ended up accumulating a lot of court paperwork or other documents from your bankruptcy attorney in Milwaukee.  Do not lose or destroy this paperwork.  It is important that you have all of the relevant proof of your filing if something should come up after your bankruptcy is finished.

The most common problem bankruptcy filers run into is having a creditor contact them after the case is finished trying to collect on a debt that was already discharged.  It is probable that the creditor never received notification, or if notification was sent, it was sent to the wrong department of the business and never got entered into the system.  In this situation, a debtor just has to send a copy of their discharge paperwork to that creditor to acknowledge that the debt was discharged in his or her bankruptcy.  The order of discharge should be sufficient notification.  Do not panic if a creditor contacts you after your bankruptcy is finished.  Try to work with them to fix the problem first, and if that does fail, contact your Wisconsin bankruptcy lawyer.

Be sure to monitor your credit report after the bankruptcy is finished.  You want to make sure that you are not continuing to report bad debt if you’ve discharged it in your bankruptcy.  Make the most out of your filing and utilize it to really truly get back on your feet.