Helbing Law Office LLC
Experienced Appleton Bankruptcy Lawyer

920-659-5606
- Free Initial Consultation

Chapter 13 Bankruptcy Archives

You can file for bankruptcy, even with a job and a good income

There is sometimes a stereotype about bankruptcy, in which people believe they have to be in absolutely dire straights to file. They need to be unemployed, swamped in debt, facing foreclosure, and with no other way out.

Can you pay off your Chapter 13 bankruptcy early?

When you enter into Chapter 13 bankruptcy, a repayment plan is created. This may take 60 months to complete, and you have to stay current on the monthly payments. What you may be wondering, though, is if you can pay it all off early to get yourself out of bankruptcy.

What if you need a new car during a bankruptcy?

Most people in Wisconsin need a vehicle in order to maintain a job. In a Chapter 13 bankruptcy, people will often have a vehicle that they are paying through their Chapter 13 plan. But because many Chapter 13s have a duration of five years, there are also many individuals who will have a car that needs to be replaced due to age or mechanical issues during the life of their plan.

Use of car is not income in a Chapter 13 rules WI bankrutpcy ct

At least in one bankruptcy court of the Eastern District of Wisconsin. In a Chapter 13, a debtor who worked for a car dealer receives a vehicle as part of her compensation. It added $625 per month to her income. However, she also had a second, personal vehicle. She did not include it in her current monthly income as listed on her Chapter 13 filings.

Court permits Ch. 13 trustee to demand payments after 5 years

In most Chapter 13 bankruptcies, the debtor makes payments to the trustee for three to five years, and upon completion of the plan, they receive a discharge. In a somewhat unusual case, because a debtor experienced an increase in her income, the trustee was allowed to ask that she amend her plan after completion.