Sapinski Law Office S.C.

The Affect of Bankruptcy on Assets And Debts

Bankruptcy is one available way to discharge debt and start over. The process will eliminate the vast majority of your financial liabilities and stop creditors from proceeding against you. With the right legal advice, you can discharge many of your obligations and still hold on to your property.

Debts

Through the bankruptcy process, you will likely be able to discharge most consumer debt. This includes credit cards, signature loans, payday loans, medical bills, unpaid rent, and any unpaid utility bills. However, certain debts such as student loans or child support are rarely dischargeable, and will remain unchanged after the bankruptcy process is over.  A broader range of debt discharge may be available under Chapter 13 than under Chapter 7 Bankruptcy.  A bankruptcy lawyer can help make sure you’ve chosen the correct type of bankruptcy.

Assets

You will likely be able to keep your assets after bankruptcy, but each state has unique laws regarding what property can and cannot be taken. Under the Wisconsin exemptions, you may keep a home with equity up to $75,000 (or $150,000 for a married couple), up to $5000 in your bank accounts (or $10,000 for a married couple), up to $12,000 in household goods ($24,000 for a married couple), and possibly all of the money in your kids’ college savings accounts. If you own your own business, you may also be able to protect as much as $15,000 ($30,000 if married). Other assets that may be shielded from liquidation include pensions, IRA accounts, social security disability benefits, vehicles, and personal injury awards.  Wisconsin residents may be eligible to use Federal exemptions instead of the Wisconsin exemptions.  The Federal exemptions do not allow you to protect as much equity in a home; however, a “Wildcard Exemption” of up to $23,950 for married couples may be available.  Always consult with an attorney who can help you determine whether the Federal scheme or Wisconsin scheme is best for you. 

The bankruptcy code is intricate, and navigating the tough waters of bankruptcy can be very difficult.  If you are in debt and are thinking about bankruptcy, contact Attorney Andrew Sapinski in the Milwaukee area to discuss your bankruptcy and non-bankruptcy options. Call the Sapinski Law Office, S.C. at (877) 939-1739 to schedule a consultation today.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

Find Out More about Your Debt Relief Options with These Great Resources

If you’d like to know more about bankruptcy or other options for dealing with debt, take a moment to explore the links below. To speak to an experienced bankruptcy attorney in the Milwaukee area, call Sapinski Law Office, S.C. today at (877) 939-1739.

• Learn more about Section 128 debt relief with this article from the Milwaukee Journal Sentinel.
• Check out this website to learn about debt discharge, one of the most important aspects of bankruptcy.
• Under federal law, creditors must abide by certain rules regarding how and when they can contact you regarding your debt.
• If you’d like to know more about Section 128, you can take a look at the statute itself.
• Head over to Investopedia.com to learn more about bankruptcy.

Filing Bankruptcy: Do I Need a Lawyer?

If you’re experiencing financial troubles, you’re no doubt cutting expenses wherever possible. Despite this, think twice before filing bankruptcy without an attorney. As you will see in this video, trying to file bankruptcy on your own may actually cost you more in the long run.

A bankruptcy attorney can help you examine your options, such as which type of bankruptcy is best for you. Bankruptcy laws changed recently and so have regulations regarding what assets you are allowed to keep. To protect as much of your property as possible, it is in your best interest to speak with a lawyer before filing a bankruptcy petition.

Sapinski Law Office, S.C., located in Milwaukee, can help you make the best financial move to deal with your debt and move on with your life. To schedule a consultation with an experienced bankruptcy attorney, call (877) 939-1739.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. 

Comparing Alternatives to Bankruptcy: Debt Negotiation and Section 128

For some consumers, bankruptcy is a good way to deal with debt and financial hardships, despite some its drawbacks. If you’re not sure how to resolve your debt, read on to learn about two bankruptcy alternatives.

Section 128

In Wisconsin, consumers have an alternative to bankruptcy known as Section 128. Since bankruptcy filing requirements became more stringent in 2005, Section 128 filings have increased as consumers seek ways to deal with overwhelming debt. A Section 128 plan establishes a payment plan to repay a consumer’s debts over three years. While this plan is in action, interest is not added to the debts, so all the consumer needs to repay is the amount that was due at the outset of the plan. The payment plan generally covers only unsecured debts like credit card and medical bills—not secured debts like mortgages. Filing a Section 128 petition can be cheaper than bankruptcy and should prevent the word “bankruptcy” from appearing on your credit report(s).  Unlike bankruptcy, however, a Section 128 plan requires that the filer repay all of his debt, not just a portion of it.

Debt Negotiation

Perhaps more suitable for people who have more debt than they can realistically pay and who have access to funds to pay their debts off, debt negotiation does not necessitate court involvement. However, because it can be a complicated process, it is recommended that one hire an attorney for guidance. The attorney will assert state and federal laws to work out a binding settlement with the creditor under which the consumer will pay only a percentage of the debt he or she owes. Typically, the consumer pays this settlement amount in one lump sum.

If you are in debt and need a way out, call attorney Andrew Sapinski with Sapinski Law Office, S.C. to discuss your bankruptcy and non bankruptcy options. No matter your income or amount of debt, we can help you find a solution and relieve your financial stress. Call (877) 939-1739 to schedule a consultation.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

3 Important Questions to Ask During A Bankruptcy Consultation

If you’re in debt, you may be considering filing for bankruptcy. However, you shouldn’t try to do so on your own; bankruptcy is a complex process that requires a qualified, experienced attorney. During your initial consultation with a bankruptcy lawyer, be sure to ask the following questions:

1. Should I file Chapter 7 or Chapter 13 bankruptcy?

These two types of consumer bankruptcy are intended for very different situations. Chapter 7 may be better for people who have a lot of unsecured debt, like credit card or medical bills, and do not own assets that have significant equity, as such assets may be taken during the Chapter 7 process. Chapter 13, on the other hand, can be a way for homeowners with reliable income to consolidate their debts into one payment plan while keeping their assets like their cars and homes. You should depend on a lawyer to help you decide which is best for you.  Chapter 13 is also better for those with higher incomes.

2. Which of my debts will be discharged?

Debt discharge is one of the most fundamental provisions of bankruptcy. After you finish your bankruptcy, you will receive a discharge, or a release from responsibility for those debts. Not all debts can be discharged, however; alimony, child support, recent income taxes and most student loans cannot be discharged, for example. Be honest with your attorney about your debts so that he can help you decide if bankruptcy is right for you.

3. Do I have other options besides bankruptcy?

Though bankruptcy is a great way to address debt and financial hardship, it may not be the best option for you.  Your income may be too high, you may have too many assets or other options may be better when it comes to your credit score. A good attorney can recommend other financial strategies, like Section 128 or debt negotiation.

At Sapinski Law Office, S.C., we want to help you manage your debt in the best way possible, whether through bankruptcy, Section 128, or debt negotiation. We can evaluate your situation and help you make the right choice. To schedule a consultation at our office in Milwaukee, call (877) 939-1739.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.