The post Facing Car Repossession in Wisconsin? Understanding Your Rights and Options appeared first on Helbing Law Office, LLC.
]]>In Wisconsin, your lender can only repossess your car if you are in “default” on your loan agreement. This typically means you are more than 10 days late on more than one full monthly payment. However, the specific definition of default might vary depending on your loan agreement.
Before the lender can repossess your car, they are legally obligated to send you a written notice called a “right to cure notice” by mail. This notice informs you of the alleged default and your right to bring your loan current within 15 days of receiving the notice. To “cure” the default, you need to pay all missed payments and any associated late fees.
Once the 15-day cure period has passed, the lender has two options to repossess your car:
After the car is repossessed, the lender will store it in a secure location. You have the legal right to redeem your car by paying the full amount owed on the loan, plus any towing and storage fees.
However, if you don’t redeem the car within a certain timeframe (typically 30 days), the lender will sell the car at an auction. The proceeds from the sale will be used to pay off the remaining loan balance, and any leftover amount might be returned to you. If the sale doesn’t cover the entire loan amount, you may still be responsible for the deficiency.
If you are facing car repossession, it’s crucial to act quickly. Here are some steps you can take:
Remember: This blog post is for general informational purposes only and should not be interpreted as legal advice. If you are facing car repossession in Wisconsin, it’s highly recommended to consult with a qualified attorney to discuss your specific situation and receive tailored legal guidance.
Feel free to reach out below to discuss your options.
The post Facing Car Repossession in Wisconsin? Understanding Your Rights and Options appeared first on Helbing Law Office, LLC.
]]>The post When Repossession Turns Unlawful: Protecting Your Rights in Wisconsin appeared first on Helbing Law Office, LLC.
]]>In Wisconsin, car repossession can only occur when you are deemed in “default” on your loan agreement. This typically means you are more than 10 days late on more than one full monthly payment. However, the exact definition of default can vary depending on the specific terms of your loan agreement.
Before repossessing your car, the lender is legally obligated to send you a written notice called a “right to cure notice” via mail. This document informs you of the alleged default and your right to bring your loan current within 15 days of receiving the notice. To “cure” the default, you need to pay all missed payments and any associated late fees.
Even when you’re in default, the lender’s actions during repossession are subject to specific legal guidelines. If the lender violates these guidelines, the repossession can be deemed unlawful. Here are some key points to understand:
If you believe your car has been unlawfully repossessed, here are some steps you can take:
While this blog post provides a general overview of unlawful repossession in Wisconsin, it’s crucial to understand that specific details and legal interpretations can vary based on your unique situation. Here are some additional points to consider:
Facing car repossession is undoubtedly stressful, and encountering an unlawful repossession adds another layer of complexity. Understanding your rights in Wisconsin and taking prompt action are crucial. This blog post aims to be a starting point, but remember, consulting with an experienced attorney specializing in consumer rights is essential to navigate the legal complexities of unlawful repossession and pursue the best course of action for your specific situation.
The post When Repossession Turns Unlawful: Protecting Your Rights in Wisconsin appeared first on Helbing Law Office, LLC.
]]>The post How Much Can I Claim in Bankruptcy Exemptions in Wisconsin? appeared first on Helbing Law Office, LLC.
]]>Wisconsin provides two sets of exemptions you can choose from:
Here’s a breakdown of the key Wisconsin bankruptcy exemptions:
When filing for bankruptcy, your attorney will advise you on the best course of action regarding exemptions. Generally, it’s recommended to choose the exemption set that offers the most protection for your assets. Consider the value of your property and which set of exemptions will best shield your belongings from liquidation.
Wisconsin’s bankruptcy exemptions offer valuable protection for your assets during a bankruptcy filing. By understanding the types of exemptions available and their corresponding limits, you can make informed decisions about which ones to utilize.
Feel free to reach out below and we can discuss your options.
The post How Much Can I Claim in Bankruptcy Exemptions in Wisconsin? appeared first on Helbing Law Office, LLC.
]]>The post Facing Creditor Contact During or After Bankruptcy? appeared first on Helbing Law Office, LLC.
]]>We can help you navigate the legal landscape and enforce your rights effectively. Don’t hesitate to reach out to us if you’ve experienced creditor harassment during or after bankruptcy.
The post Facing Creditor Contact During or After Bankruptcy? appeared first on Helbing Law Office, LLC.
]]>The post Inherited IRAs in Wisconsin: Not Exempt from Bankruptcy appeared first on Helbing Law Office, LLC.
]]>Federal law typically exempts individual retirement accounts (IRAs) owned by the debtor or inherited from a spouse. However, a recent Wisconsin case challenged this. A resident filed for bankruptcy, claiming a $300,000 inherited IRA as exempt. Both the bankruptcy court and the Seventh Circuit Court of Appeals denied the exemption because the IRA wasn’t considered the debtor’s “retirement funds.”
The case made its way to the Seventh Circuit Court of Appeals who agreed with the bankruptcy judge.
Under Sections 522(b)(3)(C) and (d)(12) of the Bankruptcy Code, retirement funds are considered exempt properties and bankruptcy creditors cannot get their hands on these funds. These retirement funds are exempt under bankruptcy law to the extent that they are in a fund that is also exempt from taxation under several specific sections of the Internal Revenue Code of 1986.
Other exemptions under bankruptcy laws include up to $20,000 in homestead equity, up to $3,225 in automobiles and personal properties such as jewelry, furniture and clothing up to a certain amount.
This case highlights the importance of understanding specific exemptions and how they apply to inherited assets. While traditional IRAs owned by the debtor are generally protected, inherited IRAs might not be.
Seek Professional Guidance:
Bankruptcy laws are intricate, and navigating exemptions effectively requires expert guidance. Consulting a bankruptcy attorney can help you:
Remember, bankruptcy doesn’t automatically mean losing everything. By seeking professional legal advice, you can make informed decisions and protect your assets during this challenging financial period. If you are interested in learning more please reach out and we can discuss your options.
The post Inherited IRAs in Wisconsin: Not Exempt from Bankruptcy appeared first on Helbing Law Office, LLC.
]]>The post Understanding Wage Garnishment in Wisconsin: Protecting Yourself During Financial Hardship appeared first on Helbing Law Office, LLC.
]]>Wage garnishment allows a creditor with a court judgment against you to collect unpaid debts directly from your paycheck. This occurs after the creditor obtains a court order confirming your debt and files a garnishment notice.
Wisconsin law protects a portion of your income from garnishment:
While these exemptions offer protection, debt issues can be overwhelming. Consider these options:
Remember, facing wage garnishment doesn’t have to be a solitary battle. Resources and legal support from Helbing Law Office are available to help you navigate these challenges and regain financial stability. Get in touch with Timothy Helbing today.
The post Understanding Wage Garnishment in Wisconsin: Protecting Yourself During Financial Hardship appeared first on Helbing Law Office, LLC.
]]>The post Some Common Questions About Bankruptcy appeared first on Helbing Law Office, LLC.
]]>I have been practicing bankruptcy law for over 20 years. I have learned many things over the years, but the one lesson I have followed the most is this. The best decisions are the ones made after reviewing as much information as possible. Below are some of the most common questions I am asked with a brief explanation.
Deciding to declare bankruptcy is a difficult decision. It should not be taken lightly. However, if you know someone who filed bankruptcy and received a discharge, ask them their thoughts on the subject. Has their life improved? I am willing to bet that they’ll tell you it was the best decision they ever made. If you would like more information regarding bankruptcy, or would like more detailed answers to these questions or different questions, please contact me.
The post Some Common Questions About Bankruptcy appeared first on Helbing Law Office, LLC.
]]>The post Tax Refunds: How Doing the Right Thing Can Have the Wrong Result appeared first on Helbing Law Office, LLC.
]]>With the new year comes the obligation to file our annual tax returns. In Wisconsin, as in many other states, we have the privilege of filing both state and federal taxes returns. For many, this annual exercise results in a return of their interest free loan to the government in the form of a tax refund. If you are reading this post and considering bankruptcy, this post is meant to explain what not to do with your tax refund.
Preferential payments, or preferences, are payments made to a creditor prior to a bankruptcy being filed that results in the creditor receiving more than they would have received in the bankruptcy. There are a few requirements for preferences: first, the creditor must receive money from the debtor. Secondly, the payment must have been for a debt that existed before the bankruptcy was filed. There are also certain benchmarks that need to be met. For general unsecured creditors, the amount received by the creditor must be greater than $600 and, for insiders (most commonly family members and friends), there is no monetary limit.
So, how are tax refunds considered preferences? If, in the 90 days prior to filing bankruptcy (one year for insiders), you use your tax refund to pay a single creditor more than $600, it is considered a preference. The bankruptcy trustee will then be able to recover those monies and divide the money equally amongst all your creditors. For example, you receive a total of $2,200 in tax refunds. Your father loaned you $1,500 last year to get caught up on some bills, so you pay him back before filing your bankruptcy. Oops! This payment has now become a preference that is recoverable by the bankruptcy trustee. Your father must turn over the $1,500 for it to divided amongst your creditors. Failure to do so could result in a money judgment against your father.
How can you avoid this happening? First, do not pay back your father. Keep the money in your bank account until after the bankruptcy has concluded. The first $5,000 ($10,000 if you are married) in your bank account is exempt, so it is protected from both your creditors and the bankruptcy trustee. Once the bankruptcy has concluded, pay back your father. How you decide to use the exempt funds in your bank account after the bankruptcy has concluded is no one’s business.
When it comes to preferences, timing is everything. If you are considering bankruptcy, contact me prior to paying any debts with your tax refund. When done correctly, bankruptcy can completely change the trajectory of your life moving forward.
The post Tax Refunds: How Doing the Right Thing Can Have the Wrong Result appeared first on Helbing Law Office, LLC.
]]>The post The High Cost of Borrowing Affects Businesses and Consumers appeared first on Helbing Law Office, LLC.
]]>During the pandemic, many consumers purchased luxury items due to the low interest rates. Such items as Rolex watches, Mercedes Benz G Wagons, and recreational vehicles were purchased under the belief that these would be good investments. However, in March of 2022, these types of assets began crashing in value. It is now difficult for these “good investments” to be sold, let alone for a profit. And this wasn’t just a consumer problem. We have even seen this phenomenon within the banking industry as well. Banks invested heavily in low-yielding Treasury bonds. Now with the Federal Reserve’s aggressive interest rates increases, these investments are yielding less returns. The banks are sitting on a potential $650 billion mess. I’ll be watching to see how this all sorts itself out.
In the meantime, how does this affect consumers and their purchasing behavior? The high borrowing costs do not just impact one’s ability to purchase a home or car. Decreases in other areas are necessary to offset the higher cost of owning a home or new vehicle. With price increases at the grocery store, increased cost of heating your home, and property tax increases, to name a few, at what point do consumers reach their breaking point? Decreases in consumer spending affect businesses and their bottom line. How do businesses respond? By raising prices even more.
The optimist in each of us believes these conditions will turn around shortly, but the cynic knows differently. Sometimes, the hardest part is acknowledging that you cannot continue under this current environment. We all reach our breaking point eventually. If you find yourself living beyond your means. If you cannot keep pace with the current economic environment. If it is getting harder and harder to meet your monthly expenses, then it may be time to consider bankruptcy. At a minimum, speak with a bankruptcy attorney to discuss your available options. I am always willing to discuss your options.
The post The High Cost of Borrowing Affects Businesses and Consumers appeared first on Helbing Law Office, LLC.
]]>The post Student loan discharge: New DOJ guidance showing promising results so far appeared first on Helbing Law Office, LLC.
]]>Prior to this new guidance, borrowers were required to meet the so-called “Brunner Test”. Under this test, debtors needed to show that they couldn’t maintain a minimal standard of living if required to repay their student loans; their circumstances were not likely to change while in the repayment period; and they made a good faith effort to repay their student loans. This standard made it virtually impossible to have student loans discharged in bankruptcy. Very few debtors (and their attorneys) even attempted to receive a student loan discharge.
This new guidance has changed everything. Under this guidance, upon the filing of the bankruptcy, debtors submit an “attestation form” with the U.S. Attorney in the district the bankruptcy was filed in. The U.S. Attorney will review the attestations on an individual basis to determine if a bankruptcy discharge is appropriate. Not only is this process fairer, but it also leads to more consistent results.
The DOJ recently published its’ findings after year one. During the first ten months of this guidance, 632 adversary proceedings were filed seeking student loan discharge. This is a significant increase compared to prior years. 97% of those filers are using this new streamlined process. Most of those debtors are being granted some form of relief. In 99% of the cases to date, where the bankruptcy court has issued an order or judgment, the DOJ recommended either a full or partial discharge. These findings speak for themselves. Struggling debtors are receiving help in the form of a full or partial discharge of their student loans.
A few things to keep in mind if you are considering taking advantage of this new guidance. First, remember this guidance ONLY applies to federal student loans. Next, how old are you? How long have you been repaying your student loans? Are you disabled? Do you have some medical condition that impacts your income potential? Did you complete your degree? These are the considerations demonstrating a future inability to repay your student loans. Additionally, what efforts have you made to repay your student loans? Did you apply for a forbearance or deferment? Have you taken advantage of the “income based” repayment options? These questions are considerations regarding your prior efforts to repay your student loans.
This new guidance makes it easier to have your student loans discharged in bankruptcy, but it does not make it easy. If you have federal student loans, it should be considered in the broader context of filing bankruptcy. So, when meeting with a bankruptcy attorney, you should have a breakdown of all your federal student loans. You can get a printout from the National Student Load Data System (www.nlsds.ed.gov). Then be prepared to answer the questions listed previously. If you would like to discuss the possibility of having your federal student loans discharged, please feel free to contact me.
The post Student loan discharge: New DOJ guidance showing promising results so far appeared first on Helbing Law Office, LLC.
]]>