Accumulating more debt than you can repay does not mean you are eligible for bankruptcy. The qualification guidelines vary according to the type of bankruptcy being sought.
Below is a general outline describing some of the most common forms of federal bankruptcy.
For more specific information, schedule a confidential, free initial consultation with the Jefferson and Rock County Chapters 7 and 11 lawyers at the law office of Rogers & Westrick, S.C. We can determine if you are eligible for bankruptcy in Wisconsin and whether bankruptcy is the right debt solution for you.
The three most common types of federal bankruptcy are:
Chapter 7 — Individuals and sole proprietorship businesses use this most common form of bankruptcy, also referred to as liquidation bankruptcy. All nonexempt assets are sold by a court-appointed trustee and the proceeds are distributed among creditors. Circumstances determine whether remaining debt is discharged.
Chapter 11 — Businesses use this debt reorganization plan to keep operating while repaying debt to creditors. A three- to five-year repayment plan is filed with the court. There is no property loss, but creditors can object to this form of bankruptcy.
Chapter 13 — Avoiding home foreclosure is one of the main reasons individuals choose Chapter 13, post filing mortgage payments must be repaid and kept current during the plan so a steady income source is needed to qualify. Sole proprietorship businesses may also use Chapter 13. All debts are consolidated and debtors make monthly payments to a trustee instead of dealing with individual creditors.
Chapter 128 — For Wisconsin residents only, this is a voluntary loan consolidation plan through the Wisconsin Circuit Court, not a bankruptcy. It is unique to the state of Wisconsin and an option for all residents overwhelmed by debt.
For several decades, the Fort Atkinson, Janesville and Whitewater bankruptcy lawyers at Rogers and Westrick, S.C., have structured debt solutions that are tailored to each client’s needs and circumstances.
We have helped resolve debt problems for thousands of people throughout the Wisconsin area, and we can help you, too.