Wisconsin Bankruptcy Law

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.

For consumers seeking debt relief in Wisconsin, Green Bay’s WFRV-TV and WFRV.com warns state residents about doing business with fly-by-night debt consolidation companies, many of whom advertise heavily in the media. Complaints to state and local government regulators about these firms–who sometimes take the money and run–are apparently on the increase.

The Wisconsin Better Business Bureau says that some of the companies promising to settle mortgage, credit card debt, or other bills are legitimate, but consumers need to be wary of certain red flags. For example, never pay large upfront fees to the debt consolidator; instead, use that money to pay off the underlying debt. Also, it may be more effective for the consumer to negotiate directly with the creditor to set up a reasonable payment plan rather than pay an intermediary to do so. A Better Business Bureau official also suggested that consumers stay skeptical of any broad guarantee by a debt consolidation company along the lines of eliminating 40 to 70 percent of the outstanding debt.

Every Wisconsin debt consolidator must obtain a license from the state Department of Financial Institutions.  Any consumer who wants to research a debt consolidation company can access the Department’s records as well as checking with the Better Business Bureau for a complaint history, if any.

Another option for the consumer is to meet with a skilled and experienced bankruptcy attorney in Milwaukee to review your balance sheet. An individual bankruptcy in Wisconsin could be best approach in difficult circumstances. A Wisconsin bankruptcy lawyer is subject to strict ethical rules, including putting the best interests of the client at the top of the priority list. Rather than getting mixed up with an iffy-at-best debt consolidation company, seeking counsel from a professional debt consolidation lawyer can be a better alternative. Your lawyer can present with authority a financial framework for going forward that may or may not include a personal bankruptcy in Milwaukee or in the surrounding area.

New credit card rules are going into effect soon, and because of this, you’ve probably been receiving some notices from your credit card issuer with a lot of fine print and legalese. As of February 22, your credit card statement will start to contain new information as required by the federal Credit Card, Accountability, Responsibility and Disclosure Act of 2009. One key change mandated by law: credit card statements will now show how long it will take to pay off your balance if you only make the minimum payment each month. The goal of this new disclosure requirement is to encourage consumers–if they can–to make larger payments to bring down their credit card debt faster before the interest gets totally out of hand.

A National Foundation for Credit Counseling official calls this a potential game changer for consumers, according to the Milwaukee Journal Sentinel: “We are extremely hopeful that seeing your financial situation staring you in the black and white will move people into action. A lot of folks bury their head in the sand and don’t face the financial facts.”

Taking action may mean obtaining Wisconsin bankruptcy information from a qualified legal practitioner. If you are able to pay off your balance in full each month, you’re in great shape. But if you’re running a large credit card balance and only have the ability to make minimum payments, it may take until the next Ice Age before the account is paid up. This may be a signal to review your financial situation with a debt consolidation lawyer. If your back is up against the wall in connection with credit card debt or other obligations, a consumer bankruptcy in Milwaukee or elsewhere in Wisconsin may be worth considering. A Chapter 7 individual bankruptcy in Wisconsin can be one way to discharge your unsecured debt and start fresh.

An article posted at the Dallas Observer website tells of a man on the hook for $100,000 in debt who has created what amounts to a cottage industry in filing lawsuits against debt collection agencies: “While most Americans with unpaid bills dread the collector’s call, Cunningham sees them as lucrative opportunities. Many collection and credit car companies, intentionally or not, violate little-known consumer rights laws, and Cunningham’s favorite pastime is catching them doing so and then suing them. In fact, it’s a profitable side job.”

Collection agencies must live up to the Fair Debt Collection Practices Act and other federal and state consumer protection laws. For that reason, it is a good idea to keep records of your interactions with these agencies if they begin to harass you. The federal FDCPA law prohibits abusive and deceptive conduct by a debt collector. A quick Internet search on this topic will explain what qualifies as prohibited conduct.

If the underlying debt(s) are valid, however, it may be a better and less-stressful approach to address your financial obligations before they get turned over for collection. According to the article, Americans owe an astounding $2.5 trillion in consumer debt, and that isn’t even counting home mortgages. In this financial environment, many well-meaning Wisconsin consumers have found themselves buried in debt as a result of economic hardships. If the wolves are at your front door, a debt consolidation lawyer can provide expert advice about how to wipe that debt off the books, including whether a Chapter 7 or a Chapter 13 bankruptcy in Milwaukee makes sense in your situation. Separately, a Wisconsin bankruptcy lawyer can also help you decide if collection agencies violated the law when contacting you, and if it’s worth going after them in court.

This is not exactly the way we wanted to ring in the New Year: Under preliminary year-end figures, Wisconsin unfortunately posted a record number of foreclosure court filings in 2009. As reported by the Milwaukee Journal Sentinel, there were almost 31,000 foreclosure filings across the state, up about 20 percent from the 2008 benchmark (about 26,000). Foreclosure filings increased 17 percent in southeastern Wisconsin, with Milwaukee County responsible for about half of them. Kenosha County home foreclosure filings increased by nearly 30 percent in 2009, the biggest jump in the area.

Some financial observers maintain that the foreclosure rate will only go down with a corresponding increase in employer hiring. The jobs picture in 2010 appears uncertain, however. In the meantime, many homeowners seem to be fighting an uphill battle to stay current on their mortgage payments amidst job losses, other mounting debts, and disappearing equity in their property. Recognizing the ongoing economic struggles, Marshall & Ilsley Corp., Wisconsin’s largest bank, announced a grace period on foreclosures through March 21, 2010, to allow their borrowers to reach a mutually acceptable repayment agreement.

For those consumers facing Wisconsin bank foreclosures, bankruptcy may be a viable option. The bankruptcy laws in Wisconsin are designed to help consumers get their lives back in order rather than punishing them for falling into a difficult situation. Depending upon the specifics of your balance sheet and other factors, a Chapter 7 or Chapter 13 bankruptcy in Milwaukee might allow you to clear away your debt or set up a manageable payment plan to deal with it. In many instances, an individual bankruptcy in Wisconsin allows you to keep your home, and in the short term, foreclosure attempts by the bank come to a screeching halt.

Do you need bankruptcy help in Milwaukee or elsewhere in Wisconsin? Declaring bankruptcy is a major decision point, but it isn’t the end of the world. With the assistance of a qualified debt consolidation lawyer, many consumers bounce back relatively quickly. An experienced Wisconsin bankruptcy attorney in Milwaukee can provide the legal advice that could provide a way forward.