Did you know that nearly 50,000 people in western Wisconsin have filed for bankruptcy since 2010? If you are considering filing for bankruptcy, know that you are not alone in your struggle. You likely have friends, family members, and neighbors who share similar experiences of financial hardship.
Nicolet Law Office, S.C., is here to help you make the most well-informed decision possible. Use the guide below to find answers to common questions, learn more about the bankruptcy filing process, and discover how a trusted attorney can produce better outcomes for you and your family.
What Is Bankruptcy?
Individuals and companies can file for bankruptcy when they are unable to repay creditors due to unforeseen circumstances. The process gives debtors the opportunity to regain a financial foothold by discharging or restructuring their debts.
Debtors may submit a bankruptcy claim when they:
- Cannot pay their bills
- Are victimized by predatory lenders
- Are facing mounting medical bills
- Are undergoing a divorce
- Are an accident victim
- Are suffering from an injury
Unmanageable debt can affect all aspects of a person’s life. At Nicolet Law Office, S.C., our goal is to alleviate the pressure on you while crafting a detailed plan to get you out of debt. Our team is standing by to provide you trusted, tailored, and affordable legal representation.
Which “Chapter” Of Bankruptcy Applies To Me?
There are two types of individual bankruptcy:
While there are many types of bankruptcy, Chapter 7 and Chapter 13 specifically pertain to individuals. Chapter 7 involves “liquidating” your assets, meaning your discretionary resources are used to pay off a portion of what you owe. Conversely, Chapter 13 will restructure your debt into a more manageable repayment plan. Look below for details.
Can All Debts Be Eliminated?
While not all debts can be forgiven, bankruptcy allows for most types of debt to be discharged. This means you will forfeit responsibility for these debts, allowing you to begin the process of repairing your overall financial well-being.
The knowledgeable attorneys at Nicolet Law Office, S.C., will thoroughly review your financial records and help you determine which of your debts are able to be eliminated. Alimony, child support, unpaid student loan balances, and back-taxes are not dischargeable.
Consumer Bankruptcy Lawyers In Rice Lake, Wisconsin
Nicolet Law Office, S.C., focuses in two types of consumer bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy Explained
Chapter 7 bankruptcy works by discharging unsecured debts, or loans that are not backed by collateral. These types of debts include credit card balances, medical bills, and utility bills, and generally come with higher interest rates. Because these types of loans don’t leverage your assets, you should be able to keep your house and vehicle. In many cases, debtors are even able to apply for new lines of credit and refinance existing car payments.
A major caveat is that Chapter 7 comes with strict eligibility requirements related to your personal income. If you fail to pass the SSA’s “means test,” you may eligible to file under Chapter 13.
Chapter 13 Bankruptcy Explained
Under Chapter 13, your debt will be restructured and consolidated into a single, lump sum. This will allow you, the debtor, to spread your payments out over a longer period of time – usually three to five years. An independent trustee will receive your payments and disperse them to your creditors on your behalf, eliminating the need for you to field collections calls and harassing letters. The trustee may even be able to work with lenders to reduce your interest rates.
What’s more, Chapter 13 only takes into account your disposable income, meaning you will be able to pay your bills and provide for your family while simultaneously reducing the balance of what you owe. And don’t worry about the bank repossessing your home or vehicle. These court-approved payment arrangements are designed to give debtors more stability, not less. It is in everyone’s best interest that you have reliable transportation and a place to call home so that you can focus on honoring the terms of the agreement.
Nicolet Knows Bankruptcy
Nicolet Law Office, S.C., files bankruptcy on behalf of individuals, families, farmers, and small business owners. We help our clients overcome hardship and begin the process of financial recovery. Our team of compassionate lawyers is here to usher you through this complicated legal process. Our fight extends beyond collections calls and wage garnishment. We will do everything within our power to save your home and vehicle and put an end to debt collection harassment.
Can I Afford To File For Bankruptcy?
Nicolet Law Office, S.C., offers flat-rate bankruptcy filings, installment payments, and reasonable rates. We won’t allow your financial struggles to hamper your dreams of financial stability. Feeling stuck between a rock and a hard place? Contact our compassionate attorneys to request your free consultation today.
Nicolet Law Office, S.C. – Rice Lake, Wisconsin
Our Rice Lake office is conveniently located at 337 North Main Street. We opened our practice in Rice Lake to provide the citizens of Barron County trusted, local, and affordable legal representation. Our attorneys are standing by now to lend a compassionate ear and years of experience.
Contact An Experienced Bankruptcy Lawyer Today
Are bills piling up, leaving you feeling like you are out of options? Contact your local bankruptcy experts at Nicolet Law Office, S.C., today. Your initial consultation is completely free. For your convenience, consultations can be performed face-to-face or through digital conferencing.