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Appleton WI Bankruptcy Law Blog

Wage-earner's bankruptcy can help working individuals

Chapter 13 bankruptcy is one that can provide protection for people who are in deep debt but are unable to qualify for a Chapter 7 bankruptcy. There are many reasons why this might be the chosen option for people who need to do something to handle the overwhelming bills that they are facing.

We know that there are a lot of things to consider in these cases, but you need to make your decision quickly. Trying to wait things out could mean that you end up more in the hole than you already are. You need to remember that the ultimate goal for your situation is that you are financially stable and able to move forward with your life.

You have obligations when you file for bankruptcy

Don't assume that filing for bankruptcy is an easy way to handle debts. When people file for bankruptcy, they have to take the time to learn what obligations they have. A person who files for Chapter 13 bankruptcy has very specific responsibilities.

Before you file for bankruptcy, you will have to go through credit counseling and provide the certificate of completion. If you were provided with a repayment plan during the counseling, that must be handed over to the court. You will also have to pay a fee to file, but you might qualify for an installment plan to handle this if you can't pay it all at once.

Chapter 7 bankruptcy can provide a fresh financial start

When you are so deep in debt that there doesn't seem like a way out, you might feel hopeless. The good news here is that you do have options to consider. One of these is filing for bankruptcy. People who meet certain income and asset limits might be able to file for a Chapter 7 bankruptcy. This could provide the fresh financial start that helps them to regain control of their situation.

We realize that this might be a scary possibility for you to consider. There are some points that you need to think about if you are facing this situation. One is that you can't listen to what other people might be telling you about your situation. No two situations are exactly alike. Instead, you need to find out exactly how the filing can benefit you and what impacts it will have on your life.

How will bankruptcy impact my finances?

Filing for bankruptcy isn't a decision that most people come to overnight. Instead, it is often made after taking a serious look at their financial state. When you do decide that you are going to file, you have to think about how this decision will impact you now and into the future.

There are two forms of personal bankruptcy that are the most common. Chapter 7 and Chapter 13 are the ones that most individuals will file. When you do this, you are trying to stave off financial disaster. There are a few differences between these two that you have to consider.

Yes, you can still buy a house after a Wisconsin bankruptcy

Bankruptcy offers many Americans a chance at a clean slate and a fresh financial start. Filing for bankruptcy provides those in debt with an automatic stay on collection efforts, including pending lawsuits, collection calls and frightening letters. Bankruptcy also offers hope for restructuring overwhelming debt for some in Chapter 13 or in the discharge of unsecured debts for others in Chapter 7.

Regardless of which kind of bankruptcy would be a better choice in your situation, you probably have questions and worries about the process. There are many common misconceptions about bankruptcy that can leave people nervous about seeking this type of relief. One of these myths is the idea that you will never be able to buy a home after filing for bankruptcy.

Chapter 13 bankruptcy might help stop foreclosure

Missing a mortgage payment can instill fear in the heart of a homeowner. When the payment is missed, the lender might start the countdown to foreclosure so it is imperative the payment is made as quickly as possible. Typically, lenders won't start official foreclosure procedures until a person has missed two to three payments. With this in mind, it might be possible for you to work something out so that you can rectify the missed payment in a few months as long as you don't miss another payment.

Sometimes, there aren't any ways that you can make the lender happy with what you are able to do. One option that you might have is to file a Chapter 13 bankruptcy, which could provide you with financial relief from other bills while holding the foreclosure off for a bit. This might give you the opportunity to get caught up on the payments so that you can keep your home.

Chapter 7 bankruptcy is an acknowledgement of the problem

A Chapter 7 bankruptcy isn't throwing in the towel and giving up on the debts that you owe. Instead, this is a time when you are acknowledging that you are in over your head. The bankruptcy lets your creditors know that you can't make the payments and takes the false sense of hope away and presents them with a factual situation.

When you decide to file for bankruptcy, you will have to make sure that you are thinking about your overall financial situation. A Chapter 7 bankruptcy means that you will have to part with many assets. Make sure that you are considering this as part of the process to decide if it is right for you.

Know what you need to do after a bankruptcy

Most people never think that they will have to file for bankruptcy, but the ones who do have to realize that this isn't an instant answer to the issues that they are facing. It is imperative that anyone who is filing understands some of the important things they need to do after he or she files.

One thing you have to do is keep copies of all the paperwork associated with the bankruptcy. There is a chance that a creditor might improperly report the status of a debt on your credit report. Having a copy of the paperwork can help ensure that you aren't stuck trying to struggle to prove that a debt should have been discharged.

Chapter 13 bankruptcy comes with specific responsibilities

Filing for Chapter 13 bankruptcy is a serious matter that must be considered very carefully. When you are going to file, you need to take a close look at the money. One of the steps of filing for this type of bankruptcy is to speak with a credit counselor to determine if there are any options for you besides bankruptcy. We can help you learn more about your responsibilities when it is time for you to file.

Once you file the bankruptcy, you will be set up on a repayment plan. This must be approved by the court and requires that you make payments to the trustee. These payments don't allow you much free money out of your paychecks, so you will need to set a very specific budget to ensure that your necessary expenses are paid.

Life after bankruptcy: What to expect

Determining that you need to file for bankruptcy isn't something that most people do easily. When you realize that you have overwhelming debts, you might find that you need to do something. It is all too easy to think about the bankruptcy process itself when you are deciding what to do; however, you also need to consider the aftermath of the filing.

There are several ways that filing can impact you even up to a decade after your case gets started. Since these can have an impact on how you are able to live your life, you should make sure that you take the time to consider the totality of ramifications. Here are some aspects of your life that may change: