Chapter 7 bankruptcy proceedings have historically been dependent on the judge's and court's discretion. Most debtors were discharged even if they were found to be financially capable of repaying debts under Chapter 13. The new paradigm shift in the law, however, makes a distinction. Eligibility criteria are fixed for debtors to qualify for Chapter 7 bankruptcy proceedings.
Reorganization provisions of Chapter 13 bankruptcy
Most people know about the bankruptcy law that helps people liquidate their assets in order to pay off their debt, known as Chapter 7. But, some people may not know that they could be able to reorganize their debts under Chapter 13 bankruptcy law, which is sometimes preferable to Chapter 7 bankruptcy. A Chapter 7 bankruptcy may use all of the filer's assets to repay debt. Chapter 13 bankruptcy, however, helps reorganize the filer's existing assets and debts in order to regain a firm financial footing.
What is the homestead exemption in Wisconsin?
When a person is considering whether to file for bankruptcy, one of the main concerns likely relates to the family home. For many, a significant amount of money is invested in their home in the form of equity. However, as part of bankruptcy, the court will consider the full range of assets in determining how to approach paying off debts.
Debt relief for education debt
Many Wisconsin students finance their education by taking student loans, either backed by the federal government or private banks. No guarantee exists that after completing their education, these students would secure high-income jobs in their chosen fields of study. If a student is unable to repay loans after graduation, filing for bankruptcy is not an option to relieve student loan debt.
