Last updated 1 month ago
Falling on hard financial times is stressful for anyone, but when a creditor starts taking money from your paycheck, you may feel understandably powerless. Fortunately, you have legal options to fight the wage garnishment process and regain your financial footing. Use this guide to determine whether filing for bankruptcy or consolidating your debt with Section 128 is better for you:
What types of debt do you have?
The federal government gives all Americans the right to declare bankruptcy. Comparatively, Section 128 is a Wisconsin statute dating from 1937 that allows It’s residents to consolidate most kinds of unsecured debt, such as credit card bills, medical bills, personal loans, and payday loans. Similar to Chapter 13 bankruptcy, the statute empowers a judge to appoint a trustee to administer the debtor’s estate and issue a protective order stopping wage garnishment, thus forcing creditors to accept repayment via monthly installments. The payment period is three years. In Chapter 13 bankruptcy the repayment term can be three to five years.
When Will Wage Garnishment Stop?
Whether you declare bankruptcy or use Section 128, wage garnishment will stop immediately.
Which Option Should You Choose?
Whether Section 128, Chapter 7, or Chapter 13 bankruptcy is better for your particular case depends on many factors and only an in-depth consultation with a qualified bankruptcy lawyer will help you decide which legal path is best for you. Section 128 can be a good option for Wisconsin residents who need help with unsecured debt, but if you are having problems with other debts such as taxes, your mortgage or your car loan, Chapter 13 may be your best option. Because Section 128 is not a declaration of bankruptcy, many find this option attractive.
To stop the wage garnishment process in Wisconsin, you need a qualified bankruptcy attorney who knows the law and can represent your best interests. If you live in the greater Milwaukee area and want to learn more about how you can hold onto your paycheck, call Sapinski Law Office, S.C. today at (877) 939-1739. For Fox Cities residents can call (920) 358-0333 to schedule a consultation at our Appleton location.
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.
Last updated 1 month ago
Bankruptcy is the legal process that can eliminate (discharge) your debt and is governed by federal law. It can be a complex process, and an experienced bankruptcy lawyer will be able to explain bankruptcy to you in a way that makes sense. Here is of what you should expect from your first meeting with a bankruptcy lawyer at Sapinski Law Office, S.C.:
The Initial Meeting
It can be intimidating to meet with an attorney, especially when you are considering filing for bankruptcy. However, at Sapinski Law Office, S.C. we care. When you meet with Attorney Sapinski he will ask you some questions about your finances, including your income and debts. He will explain the bankruptcy process with you in full detail and will discuss non-bankruptcy debt relief options so you can make sure you are making the best financial decision for you and your family. He and his staff will complete all the complicated forms for you and answer any questions you may have. You will be relieved to find the process is quite painless.
Items to Bring
What should you bring when you come in? It is helpful if you can bring a list of who you owe money to, the amounts you owe them and their addresses. List all your creditors, including your personal loans, credit cards, medical bills, mortgage and car loan, regardless of whether you intend to include them in your bankruptcy or not. If you don’t have the time to prepare a list, or if you simply have too many creditors, just bring the bills with you. We’ll go through them with you, obtain a credit report and help you sort everything out. Second, bring a list of your monthly expenses, such as car insurance, utilities, gas, food and prescriptions. Third, bring paystubs or a payroll history showing your wages from work over the last seven months. Bring your last two years tax returns, if you have them. Finally, if you have been sued, are facing foreclosure or have been divorced, bring the court papers you have received.
Are you considering filing for bankruptcy? It is important to find a lawyer who focuses on bankruptcy law and understands the intricacies of the process. At Sapinski Law Office, S.C., bankruptcy is all we do. We can answer any questions you may have and will explain what you should expect in your case. To schedule a consultation in the Milwaukee area, call (877) 939-1739. For appointments in the Appleton and Fox Cities area, call (920) 358-0333.
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.
Last updated 1 month ago
If you are like many Americans, the recent state of the economy may have left you overwhelmed with bills or even drowning in debt. For some people, declaring bankruptcy is the best option to deal with creditors and put a stop to constant calls from debt collectors. Find out if you are a good candidate by contacting a qualified bankruptcy lawyer and reviewing these factors that may disqualify you from filing for bankruptcy in Wisconsin:
High Income
Often, Chapter 7 is not an option for those who earn more than their state’s median income. In Wisconsin, the median income for a household of two is $57,479. For an individual it is $42,776. If your income is above the median, you may still be eligible to file Chapter 7; however, unlike those who are below the median, you have to complete a complicated form called the means test to determine if you qualify. This form is complicated and it is strongly recommended that you hire an attorney who specializes in bankruptcy if your income is above the national median.
Filing History
Have you filed for bankruptcy in the past? If you have received a prior bankruptcy discharge, you may need to wait to file bankruptcy again. For example, if you receive a discharge under Chapter 7, you must wait at least 8 years after the prior case filing before you can file Chapter 7 again. You can file Chapter 13 after a Chapter 7 discharge, but won’t be eligible to receive a discharge under the Chapter 13 if it is filed within the 4 year period after your prior Chapter 7 filing. If you receive a Chapter 13 discharge and paid 70% or less to unsecured creditors, you will need to wait 6 years from the Chapter 13 filing date before you can file Chapter 7 again. If your Chapter 13 plan paid more than 70% to unsecured creditors, you can file under Chapter 7 right away. If you receive a prior Chapter 13 discharge, you will need to wait at least 2 years after the prior Chapter 13 filing before you can file another Chapter 13 case.
Prior Dismissal
If you have filed Chapter 13, but your case was dismissed, you may be able to re-file Chapter 7 or 13 right away, so long as the eligibility requirements mentioned above are satisfied. However, if you re-file within the 1 year period after dismissal, the automatic bankruptcy stay will terminate if you don’t successfully bring a motion to continue that stay within the 30 days after your bankruptcy case is filed.
If you have filed for either Chapter 13 or Chapter 7 and your case was dismissed for willful failure to abide by court orders or if you voluntarily dismissed a case in which a motion for relief has been filed, you must wait 180 days to re-file bankruptcy. You may also be unable to re-file bankruptcy if you commit fraud.
False Statements
It may seem obvious, but anyone who conceals, destroys, or falsifies records regarding his or her finances will not get a discharge in Chapter 7 or 13. If you are uncertain about which documents to provide, err on the side of caution by consulting a bankruptcy lawyer.
Sapinski Law Office, S.C. is passionate about helping Eastern Wisconsin residents become debt-free. If you are struggling with the decision to file for bankruptcy, attorney Andrew Sapinski can guide you through the process with the legal precision you need and the compassion you deserve. Call (877) 939-1739 for a free bankruptcy consultation in Milwaukee or (920) 358-0333 to reach our Appleton location, and start making sense of your finances 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.
Last updated 1 month ago
Bankruptcy can be a viable legal solution for those with State and IRS income tax debts; however, discharging income tax debts in bankruptcy is a complex process. Income taxes that cannot be discharged under Chapter 7 may be eligible for repayment under Chapter 13 bankruptcy. If you have tax debt(s), it is essential that you contact an experienced bankruptcy lawyer who understands the bankruptcy code and can determine what course of action is best for you. Your attorney will look at:
Are the tax debts considered “priority” debts under 11 U.S.C. Section 507?
When an income tax debt has “priority” status, it will be non-dischargeable in Chapter 7 and must be paid in full through Chapter 13. If the return for the tax debt at issue was due within the three year period before your bankruptcy is filed, the tax debt for that year will be considered “priority” under 11 U.S.C. Sec. 507(a)(8)(A)(I). Also, if the return was subject to an IRS assessment within the 240 days prior to your bankruptcy filing, the debt will be considered “priority”. The assessment date can be hard to determine. Most clients receive notices from the IRS informing them that they have been assessed; however, it is suggested that you request a record of account from the IRS which will provide the best information on when assessment occurred.
When were the tax returns filed?
The next thing your attorney will want to know is whether you ever filed income tax returns for the tax debts at issue and when those returns were filed. If the returns were never filed or if they were filed within the two year period before your bankruptcy case is filed, the debts relating to those returns will be considered non-dischargeable under 11 U.S.C. Sec. 523(a)(1)(B) and will not get discharged in a Chapter 7 Bankruptcy. However, through Chapter 13 bankruptcy, you can propose a plan to pay those debts in full over a 3-5 year period. Again, a record of account obtained from the IRS will show the dates the returns were filed. Remember that tax returns filed on your behalf by the government may be insufficient to meet this requirement—it is best that you personally file the tax returns.
Fraudulent Return or Tax Evasion
If the tax debt relates to a return that was fraudulent or if the tax payer willfully attempted to evade the tax, the tax debt will also not be dischargeable under 11 USC Sec. 523(a)(1)(c). That is, the debt will not go away if you file Chapter 7 bankruptcy.
Other factors
The code is complicated when it comes to discharging taxes and careful planning is often required. For example, there are many tolling provisions that must be taken into consideration. The time you are in a prior bankruptcy will toll (delay the start of) the 3 year priority period referenced above. If you file a tax return extension, that will also delay the start of the 3 year waiting period. If you have a pending offer in compromise the start of the 240 day period gets delayed and an extra 30 days gets added.
Timing is critical when one is looking to take care of income tax debts through bankruptcy. For example, someone who filed 2004 tax returns 705 days ago may find they only need to wait a couple of weeks before they can file Chapter 7 and discharge the 2004 tax debt through bankruptcy. It is important that you obtain a record of account from the IRS and have it thoroughly reviewed by your attorney. Your attorney can then help you determine when you should file.
Are you considering declaring bankruptcy because of income tax debt? The laws regarding the discharge of bankruptcy debts are complicated and you should only consult with an attorney with experience. Andrew Sapinski has been helping Wisconsin residents handle their tax debts through bankruptcy for over 13 years. If you need an experienced bankruptcy lawyer who will personally handle every detail of your case and will always look out for your best interests, call Sapinski Law Office, S.C. of Milwaukee today at (877) 939-1739. To schedule a bankruptcy consultation in Appleton, call (920) 358-0333.
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.
Last updated 2 months ago
In today’s economic climate, falling behind on your bills can have long-lasting effects on your life. If you are struggling to make ends meet, filing for bankruptcy may be a great way to discharge bad debt and secure a better financial future. This process can also help you avoid foreclosure and keep your home. Here is a list of links about important Federal and Wisconsin-specific bankruptcy and debt modifications laws:
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Filing for Chapter 7 bankruptcy can often discharge unsecured debt. Investopedia.com outlines the different types of unsecured loans that many people have.
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Chapter 128 is a Wisconsin-specific alternative to filing for bankruptcy; the State Bar of Wisconsin clarifies this unique option for residents struggling with debt.
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If you and your spouse earn less than $57,479 per year, you are likely eligible to file for Chapter 7 bankruptcy without having to go through the means test administered by the Department of Justice.
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Bloomberg News reports that healthcare costs throughout the country rose at a rate that was much higher than inflation during the last year.
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Do you want to learn how Chapter 7 bankruptcy is different from Chapter 13? HowStuffWorks.com explains the various types of debt discharges available to U.S. residents.
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To read the text of Chapter 128 of the Wisconsin Statutes, look no further than the state’s legislative documents website.
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The U.S. Courts provides lengthy explanations to frequently asked questions about the different types of individual and corporate bankruptcy.
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According to CNN Health, more than 60% of bankruptcies in the United States were caused in some part to high medical bills.
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In the case of Marie Brunner v. New York State Higher Education Services Corp., 831 F.2d 935 (2nd Cir. 1987), a the Second Circuit Court of Appeals outlined three factors to evaluate when deciding whether or not a debtor can discharge his or her student loans through bankruptcy.
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The Division for Public Education at the American Bar Association explains how the means test can prohibit households from filing for Chapter 7 bankruptcy.
If you are thinking about filing for bankruptcy in Wisconsin, consult the skilled legal team at Sapinski Law Office S.C. in Milwaukee by calling (877) 939-1739 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.
