Wisconsin Bankruptcy Law

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.

A piece in the Washington Times notes that when Congress overhauled the bankruptcy code in 2005 (revisions that changed the bankruptcy laws in Wisconsin and everywhere else), it intended to steer more consumers towards a Chapter 13 bankruptcy repayment plan. However, things didn’t pan out as anticipated because the explosion of long-term unemployment forced more consumers without regular income into Chapter 7 as their only alternative. “Overburdened by huge mortgages, plunging home values, unsustainable credit card debts, tightening credit conditions and soaring joblessness, families have been carrying an ‘overhang of consumer debt’ for a decade or so as a result of a low savings rates and over consumption,” the Times article explains. This resulted in a “debt bubble” and soaring bankruptcy filings, according to the Times. The decrease in home values has particularly created a Catch-22 for many consumers who are now unable to even qualify for a home equity loan as a temporary bill-paying measure, assuming for the sake of discussion that would be a wise thing to do: “The ability to tap into home equity to bridge difficult times is no longer available,’ [an official with the American Bankruptcy Institute] said, because home prices have plunged since the housing bubble began to deflate in 2006.”

There’s an old saying, you can’t borrow your way to prosperity. And the collapse in real estate values, plus job layoffs and maxed-out credit cards, affects honest consumers from all brackets: working class, middle class, and upper income. Unfortunately, many consumers in this state may now have little choice but to consider an individual bankruptcy in Wisconsin. If you’re facing the double whammy of the debt and housing bubbles that might be about to burst, contact a debt consolidation attorney about debt relief in Wisconsin. A trusted legal adviser is where to go for Wisconsin bankruptcy information.

A lot about our society has changed over time, hasn’t it? Take bankruptcy. Declaring bankruptcy is understandably a big decision for most people–but it seems to carry much less of a stigma than it once did. Given the difficult financial straits that many Milwaukee and other Wisconsin consumers find themselves in, an individual bankruptcy in Wisconsin could be the best option if you are facing a mountain of debt. And a qualified debt consolidation lawyer can help you bounce back faster than you might expect. Your lawyer can discuss your options and walk you through all the required court paperwork for, among other things, listing each creditor and how much you owe them.

Although many consumers feel that bankruptcy is the equivalent to a bungee jump off a cliff or a suspension bridge, a bankruptcy in general boils down to three fundamentals: debts, assets, and income.

       Debts: Your outstanding debts fall into two categories: secured and unsecured. Secured debt is money you owe that is connected to a specific piece of property (collateral) like your home or your car. Unsecured debt comes into play in relation to credit card or medical bills, and other debts that aren’t “tethered” to specific property.
       Assets: This consists of what you own and what collateral you’ve used to secure those loans and obligations that may be at risk for foreclosure or repossession. Although the rules vary from state to state, under the bankruptcy law in Wisconsin, you can usually hold on to your home and your car.
        Income: This includes how much money you have and your average income for the past six months. This calculation determines whether you are eligible to file for bankruptcy in the first place, and if so, what kind. Not everyone in Milwaukee and in other areas throughout the state can file under Chapter 7; instead, a Chapter 13 bankruptcy in Milwaukee may be more appropriate.

If you have Wisconsin bankruptcy questions, you should consult an experienced bankruptcy lawyer sooner rather than later so that you can save as much of your property as the law allows. The bankruptcy attorney’s job is to help you sort out what you owe and what the law will allow you to keep.

More often than not, people ask me, “Can I pick and choose which debts I want to list in my bankruptcy?”  Unfortunately, the answer to this question is no.  Every person that files a personal bankruptcy in Milwaukee must list all of their debt in their bankruptcy paperwork.  Picking and choosing what to list is considered preferential treatment to your creditors, and it is, quite plainly, just not allowed.  Don’t think that just because you list everything in your bankruptcy that you won’t be able to rebuild credit, however.  There are several ways to rebuild credit, but excluding debt from your bankruptcy paperwork will not help you.  In fact, paying some creditors while discharging debt with others while in bankruptcy could completely jeopardize your filing.

There are different options if there are debts that you would not like to discharge in bankruptcy.  To determine what your options are, and to discover more information about the avoidance of preferential treatment in filing, please contact a Wisconsin bankruptcy lawyer with experience filling out bankruptcy schedules.  Any reputable attorney will be able to answer these types of questions for you, so don’t be afraid to set up a free consultation to find out more and figure out what can and cannot be done in bankruptcy.

The moment when you realize that you really may be in over your head with your financial problems can be one of the scariest situations in your life.  The best thing you can do for yourself is to really face your situation and find out exactly what you are facing.  Sit down with all of your bills and figure out how much you owe to your creditors.  You will be able to determine what types of debt you are dealing with and will have a better idea of how manageable your situation is.  Consider your options and analyze your situation with a level head.  You may discover that you have a way out after looking into Wisconsin bankruptcy information.

If you are looking into the aspects of consumer bankruptcy Milwaukee has many attorneys that offer help throughout the process.  Be sure to do your homework finding an attorney that is there for you and understands your needs as well as the entire bankruptcy process.  After talking to an attorney, you may find yourself with something that you may have not had for a while…hope.  Don’t let yourself become overwhelmed and overcome with stress and fear.  Looking into your options may allow you to free yourself as opposed to just letting things fester and get worse.