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Appleton WI Bankruptcy Law Blog

When is filing for bankruptcy a bad idea?

Just as with other important decisions in your life, bankruptcy should never be entered into lightly. If you think of bankruptcy as a quick fix or as a way to simply wipe out your debts without trying to pay them, this solution may not be for you.

In truth, it is always a good idea to seek advice about filing a bankruptcy in Wisconsin before you get started. This is one of the best ways to help you identify whether or not you are a good candidate for this debt relief solution.

Bankruptcy myth: You can never discharge student loans

Like most complex issues in society, there are a lot of misconceptions and myths surrounding bankruptcy. Some people believe it will preclude them from ever owning a home or getting credit again. Others may have heard that there simply isn't any way for student loans to get discharged in bankruptcy. This myth is particularly insidious, as it prevents people who could benefit from bankruptcy protections from considering the process.

Bankruptcy is complicated, and even more so when it comes to student loans. There is no simple answer when it comes to a debtor's ability to discharge student loans. Numerous factors, including the kind of school, the kind of loan and the physical and mental capabilities of the person seeking relief, can impact the outcome of hearings about student loans in bankruptcy.

Weighing the pros and cons of filing bankruptcy

For many debt-ridden Wisconsin residents, bankruptcy is the only option. Others may be able to choose an alternative to bankruptcy but they don't know if they should. We understand that it can be difficult to make sound decisions in the midst of a financial crisis. This is why we like to talk about debt and solutions in our blog.

For this post, we thought it would be helpful to talk about the advantages and disadvantages of filing a bankruptcy. Our staff hopes that this information will empower you to weigh the pros and cons carefully, resulting in a sound decision that benefits your family.

Tackling your debts 1 payment at a time

Debts can be emotionally draining and often lead to a vicious cycle of borrowing and unaffordable interest rates. You may have got to a point where you feel as though taking out one more credit card will only be a drop in the ocean when it comes to the debt that you have already accumulated.

If you are reading this article, then the good news is that you are clearly ready to make a change. By taking small steps and manageable lifestyle changes, it is possible to rid yourself of the debt cycle and finally breathe a sigh of relief.

Unsolicited loan checks can lead to wage garnishments

You may be able to pinpoint the exact moment that your financial future took a nosedive. It might have been the carefully targeted loan solicitation in the form of an already-executed check for a couple grand awaiting only your signature to cash.

You remember how it spontaneously appeared in your mailbox just before the holidays last year, mixed in with the greeting cards and monthly bills. Perhaps you cashed it that very day, pleased that you now had some spending money for family gifts.

Financial columnist urges caution about debt settlement

It is not a surprise to learn that debt relief is on the minds of many Wisconsin residents. Overwhelming debt remains a nationwide problem and most people would grasp at anything that seems like a solution. Debt settlement companies offer plans and programs that seem foolproof, but one financial columnist with NerdWallet cautions people to think twice before succumbing to the allure of debt settlement without careful consideration.

Thanks to better regulations and enforcement, debt settlement companies are much less nefarious than they were a few years back. The companies that survived these regulation enforcement efforts largely perform as advertised in that they seek debt forgiveness from creditors. However, caution is still necessary for people seeking debt relief by way of settlement.

When your degree does not lead to a high paying job

Student loans seemed like a great idea when you first started college. You could pay for your tuition, graduate and earn enough money to make the payments. Unfortunately, you only have a six-month grace period before you have to make that first post-graduation payment. When you are earning entry-level wages and trying to pay rent and take care of your other living expenses, it can seem like an impossible task to keep up with your student loans.

If you are like most other students transitioning into the work-force full-time, you may already be at least $27,000 in debt. Making the interest payments alone is not going to get that debt paid down. Not making the minimum payments at all will send you into default. If you have student loans and you are struggling to handle the payments or are already in default, you may still have some options available. Read further to find more about what other graduates in Appleton are doing to deal with student loan debt.

How an attorney can assist with a chapter 7 bankruptcy

Here is a scenario we have seen with our clients. You have been struggling with your debt for a long time. After trying desperately to sort out the situation and get back on track, you finally realize chapter 7 bankruptcy is your solution. You assume that because you are so far in debt, working with a lawyer is out of your reach. However, you have trouble with your bankruptcy and don't know where to turn for help, leaving you even more in debt and at loose ends altogether.

Unfortunately, this scenario is all too common in Wisconsin. While it is possible to file a chapter 7 bankruptcy without professional help, most people say that they would work with a lawyer if they could do it all over again. Why is attorney assistance so important? Consider the points we have listed below to find an answer.

  • A lawyer can make sure you qualify for chapter 7 bankruptcy.
  • A lawyer can represent you and protect your rights in creditor meetings.
  • A lawyer can ensure your chapter 7 filing contains no errors.
  • A lawyer can assist you when filling out the required documentation.
  • A lawyer ensures you do not miss important deadlines.
  • A lawyer helps you protect your most treasured assets when possible.

Many people with cancer have to worry about bankruptcy, too

When you first get diagnosed with a chronic or life-threatening illness, you worry mostly about your health and future. Will you see your children (or grandchildren) graduate school? Will the treatments cause pain and discomfort? Will you be part of the percentage of people who "beat" this condition?

Very few people think about the financial implications of a chronic or serious illness until reality rears its ugly head. Even if you have the best insurance in the world, a single treatment could cost tens of thousands of dollars. Any amount of co-insurance, even 5 percent, could quickly become overwhelming.

Chapter 13 bankruptcy in Wisconsin | An overview

If you are like most residents in the Appleton region of Wisconsin, filing for bankruptcy is the last debt relief solution on your list of options. People naturally fear bankruptcy even though it does not carry the stigma it once did. When you realize that this option is your best choice, you must then decide whether to pursue a chapter 7 or a chapter 13 bankruptcy.

If you listen to your peers, they might tell you to take chapter 13 off the table if possible. However, we like to advise our readers to consider all options before making a decision. A chapter 13 bankruptcy is known as a reorganization bankruptcy because it enables you to reorganize your debts. This option allows you to hold on to much of your property, meaning that you will not lose your home and other assets.