Wisconsin Bankruptcy Law

Not everybody is eligible to file a Chapter 7 bankruptcy in Milwaukee.  The majority of these types of people fail the Means Test.  It is probably useful to understand what the Means Test is, and why it helps determine whether you are eligible for a full discharge of your unsecured debt.

People who fail the Means Test will find that a debt consolidation lawyer will advise them to consider filing a Chapter 13 instead.  Basically, the Means Test is a system to determine whether you fall into the category of people that given all of your resources, you have no reasonable option of selling your assets or budgeting to pay off your creditors.  Your household size, assets, and income are just a few of the factors taken into consideration during this process.  The bankruptcy court allows a certain baseline of what are considered reasonable necessary expenses (for example, food, clothing, shelter…) and takes into consideration what your income is and what kind of assets you have to determine whether you cannot feasibly pay off your debts through a Chapter 13 plan.  It is one of the most common Wisconsin bankruptcy questions that I regularly hear.  What is the Means Test, and how do I know if I fall into the category that allows me to file a Chapter 7 bankruptcy?

As I’m sure you can imagine, the Means Test can be quite confusing to the untrained individual and can quickly cause a case to be dismissed if it is not adhered to.  It is important to have a real understanding of the laws that must be followed throughout the bankruptcy process, and people who file on their own or with a lawyer that does not normally handle bankruptcy cases may find difficulty keeping their filing afloat.  Be sure to do your homework about all aspects of filing, and make sure you have an understanding of how the Means Test will affect your case.