Facing a growing mountain of debt is a stressful situation that can drive anyone to make decisions out of desperation. Making decisions before you understand all your options might actually make the situation worse, though. At the very least, if you don’t know all of your options for dealing with debt, you could take a path that costs much more or leaves you with a continuing struggle in the future.
In Wisconsin, you have numerous options for debt relief through the legal system. All state residents can learn more about filing for either Chapter 7 or Chapter 13 bankruptcy under the federal bankruptcy system. Both types of bankruptcy do come with certain requirements and thresholds, and some people who file for Chapter 7 don’t qualify because of their income or type of debt. Those individuals often qualify for a Chapter 13 filing instead.
A Chapter 13 bankruptcy is sometimes referred to as a wage earner’s plan because it was designed for people with a steady income. The petition lets you work through the court and a trustee to reorganize your debts and pay off creditors within a period that usually lasts three to five years.
One option residents of Wisconsin have that isn’t available throughout the rest of the nation is often referred to as a Chapter 128. Technically, this option is a debt reorganization similar to Chapter 13 bankruptcy, but it is governed under Chapter 128 of the state’s statutes.
Deciding what type of bankruptcy is best for you and ensuring everything is filed correctly can be daunting tasks. Our firm works with you to review your situation and pick the best possible path toward a new financial life.