Last updated 2 months ago
If you are falling behind on mortgage payments, there is a chance your homestead may end-up in foreclosure. This process can be arduous and legally complex, especially in Wisconsin. Here is brief a look at the stages of judicial foreclosure in Wisconsin:
Missed Payments and Filing of Foreclosure
Foreclosures can be judicial or non-judicial. A judicial foreclosure requires the bank to file a lawsuit with the courts. In a non-judicial foreclosure, the loan documents allow the bank to sell the home if the loan goes into default. In Wisconsin, most foreclosures are judicial.
The first step of a judicial foreclosure involves becoming delinquent on your mortgage. When you are 90 days past due, your mortgage company will issue a Notice of Default which is often accompanied with a Notice of Right to Cure Default. If you fail to cure the default, your lender will initiate foreclosure by filing a summons and complaint in the Circuit Court in the County where your real estate is located.
Foreclosure Judgment
After the summons and complaint are filed, the law requires that they be served upon you. Once you are served, you will have time to file a response. The response period can vary, but generally will be 20 days for an individual. If you fail to file a timely response within 20 days after you are served, a foreclosure judgment will be entered by default.
Redemption Period
After the foreclosure judgment is entered, you will then have a redemption period. This is the minimum amount of time your mortgage company must wait between the date they obtain a foreclosure judgment and the date they can sell the property at a foreclosure sheriff sale and force you to get out. The amount of time you will be given will be stated in the foreclosure complaint and can vary between 12 to 2 months. Generally, you will get 6 months or more if you are living in the property. If it is not owner-occupied, your redemption period will be 3 months and if it is abandoned (vacant), you will get only 2 months. If you want to keep your property, it is very important that you not abandon it, as it will shorten your redemption period considerably. During your redemption period, you are allowed to pay-off your mortgage, if you can find the funds to do so. You can also sell your home and retain any equity you may have in the property.
Foreclosure Sale
Any time after your redemption period ends, the home can be sold at a foreclosure sheriff sale. Within a few of weeks, that sale must be confirmed by the Court. If you wish to keep your home, filing Chapter 13 may allow you to keep it, so long as you file before the foreclosure sale has been confirmed by the Court. However, it is always recommended that you file your bankruptcy months before the confirmation date.
You may also stop the foreclosure process by modifying your mortgage loan.
Foreclosure is not inevitable. The foreclosure process in Wisconsin has the potential to take the better part of a year, but you can possibly prevent foreclosure altogether by seeking the help of a local bankruptcy attorney as soon as possible. Appleton and Milwaukee area residents in need of actionable legal advice should consult the bankruptcy team at Sapinski Law Office, S.C. For a Milwaukee area appointment, call (877) 939-1739. To contact the Appleton office, call 920-358-0333. We will do everything we can to help you stop foreclosure and keep your home.
Last updated 2 months ago
If you are falling behind on your student loan payments, it may be wise to attempt to discharge them through bankruptcy. Discharging student loans in bankruptcy is not as easy as discharging medical bills or credit cards. This is because 11 U.S.C. Section 523(a)(8) of the Federal Bankruptcy Code makes most student loans non-dischargeable. This section used to bar just federal student loans from discharge; however, in 2005 Congress expanded it to prohibit the discharge of private loans also. Section 523(a)(8) basically excludes a student loan from discharge, unless the Debtor can prove the student loan poses an “undue hardship” on the Debtor or the Debtor’s dependents. To have a student loan declared an undue hardship, and therefore dischargeable, the debtor must first file an adversary proceeding. This is a special trial where a Judge makes a determination of whether the debt poses an undue hardship. In these cases, the Debtor has the burden of proving the student loan debt poses an undue hardship. Here is a look at the undue hardship standard and how it may apply to your student loan(s):
The Three-Factor Test
The Bankruptcy Code does not formally define “undue hardship”, but the late 1980s case of Marie Brunner v. New York State Higher Education Services Corp., 831 F.2d 935 (2nd Cir. 1987) provided three factors that judges must consider when deciding whether the undue hardship exception applies. The first factor is that your financial burdens are currently so severe that you would be unable to maintain a minimal standard of living if you were also paying your student loans. Second, you must show these financial burdens will continue for a significant portion of the repayment period of the student loan(s). Third, you must show that you made a good-faith attempt to make payments on your student loan payments before filing for discharge under Chapter 7.
Room for Argument
While the first and third of the above factors tend to be mathematical in nature, the second factor leaves room for legal argument and is the one most undue hardship cases hinge on. Of course, someone who has a permanent disability will stand a much better chance of meeting this part of the test than someone whose disability is temporary. Everyone’s circumstances are different. You need to hire an experienced bankruptcy attorney who knows how to demonstrate to the Court that your student loan poses an undue hardship.
Are you struggling to pay off your student loans? Depending on your circumstances, a lawyer may be able to help you discharge this debt altogether by filing for bankruptcy. If you live in Wisconsin, contact the skilled legal team at Sapinski Law Office S.C. at (877) 939-1739 to see how we can help. Our Milwaukee-area law firm has helped many Wisconsinites discharge bad debt and turn over a new leaf. To reach our Appleton office, 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 3 months ago
If you are struggling with too much credit card debt and thinking of filing for bankruptcy, you need to decide whether to file under Chapter 7 or Chapter 13. However, not everyone qualifies for Chapter 7 bankruptcy, so be sure to consult with your bankruptcy attorney to decide what type of filing is right for you. Here is a look at what types of households qualify for Chapter 7 bankruptcies:
Those with High Levels of Unsecured Debt
Unsecured debt consists of loans that are not backed by any collateral such as real property or bank accounts. These often include credit cards, store cards, and medical bills. If you default on these loans, the creditor generally cannot take away any property. Comparatively, a mortgage is a secured loan because the debt is backed by the home itself, which can be foreclosed on. Chapter 7 is a great option for eliminating unsecured debt. After filing, a Trustee may liquidate your non-exempt property to pay off creditors for pennies on the dollar. The remainder of your debt subsequently disappears.
Low-Wage Earners
As of 2005, Chapter 7 has been the bankruptcy choice best suited for those who earn less than their state’s average income. This is because Congress created the means test to ensure that above-average earners were not filing for this special discharge if they could afford to meet their loan obligations through a payment plan. If you earn less than the average income (median income) in your state (adjusted for size of household), you will likely be eligible for a Chapter 7 discharge. In Wisconsin, a family of two who earns less than $57,479/year ($4790/month), or a family of four who earns less than $79,648/year ($6637/month) will be eligible for a Chapter 7 discharge. Again, these figures will vary, as they depend on the state in which you reside.
Attorney Andrew Sapinski can offer actionable advice about writing off debt. If you live in the Milwaukee area and are looking for answers, contact Sapinski Law Office S.C. by calling (877) 939-1739. Our office offers free initial consultations, so make an appointment today to begin the process of starting over.
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 3 months ago
Households all over Wisconsin have been permanently affected by the recession. If you have fallen behind on your mortgage payments or are in danger of doing so, arming yourself with information is always helpful. Here is a look at some important foreclosure vocabulary:
Deed
This is a document that shows who owns the property. It will generally contain the seller’s name (grantor) and the buyer’s name (grantee). It will also contain a full legal description of the property and must be recorded with the County Register of Deeds Office in the County where the property is located.
Mortgage Note
Another important legal document is the mortgage note held by the bank. This contract provides evidence as to who has a mortgage lien on the property and must also be recorded. It contains the owner’s name and borrower’s name, a description of the property, the amount borrowed and many important terms and conditions. As lenders sell mortgages to one another, several banks may hold your note over time. Your lender may be unable to bring a foreclosure lawsuit against your property if they cannot provide a full copy of the recorded mortgage note.
Reinstatement Period
If you are behind on your mortgage, your mortgage note will generally give you a right to cure your default so you can make your mortgage current again. The specific terms will generally be laid-out in the default provisions section of the mortgage note. The amount you must pay will include not only the mortgage payments you missed, but may also include fees and costs, such as late fees, accrued interest and attorney fees incurred by your mortgage company.
Foreclosure Process
If you fail to reinstate, the foreclosure process will be initiated when the lender (mortgage company) files a summons and complaint at the Courthouse. You must then be served with copies of the summons and complaint and you will be given a period of time to file a response. The response period can vary, but will generally be 20 days for an individual. If you don’t respond, a foreclosure judgment will be entered.
Redemption Period
After the foreclosure judgment is entered, you will then have a redemption period. This is the minimum amount of time your mortgage company must wait between the date they obtain a foreclosure judgment and the date they can sell the property at a foreclosure sheriff sale and force you to get out. The amount of time you will be given will be stated in the foreclosure complaint and can vary between 12 to 2 months. Generally, you will get 6 months or more if you are living in the property. If it is not owner-occupied, your redemption period will be 3 months and if it is abandoned (vacant), you will get only 2 months. If you want to keep your property, it is very important that you not abandon it, as it will shorten your redemption period considerably. During your redemption period, you can pay-off your mortgage and keep your home. You can also sell your home and retain any equity you may have in the property.
Equity
As you pay your mortgage, you accumulate equity in the property. This amount is the difference between the value of your home (what you would receive in the event of a sale) and how much you owe. Equity is generally calculated by assessing the market value of your home and subtracting the amount you still owe on the mortgage and/or other liens that may exist on the property.
Foreclosure Sale
Any time after your redemption period ends, the home can be sold at a foreclosure sheriff sale. Within a couple of weeks, that sale must be confirmed by the Court. If you wish to keep your home, filing Chapter 13 may allow you to keep it, so long as you file before the foreclosure sale has been confirmed by the Court. However, it is always recommended that you file your bankruptcy months before the confirmation date.
Do you need legal advice about an impending foreclosure? Contact the legal team at Sapinski Law Office. With locations in Appleton and the Milwaukee area, bankruptcy attorney Andrew Sapinski is available to help you make sense of your finances and keep your home. 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.
Last updated 4 months ago
Bankruptcy is a fairly complex legal action. This video answers many questions that prospective filers may have about the benefits and drawbacks of filing for bankruptcy.
You may be wondering, what is the main difference between a Chapter 7 and Chapter 13 filing? Generally speaking, a Chapter 7 allows you to wipe away your unsecured obligations, such as credit card debts and medical bills. In some cases, certain assets may be liquidated and used to pay-off your creditors. In comparison, Chapter 13 is a process that reorganizes and consolidates your debts and allows you to pay them off over a period of three to five years. Click play to learn more.
Only a skilled attorney can help you determine which type of bankruptcy is right for you. If you live in Milwaukee and need actionable legal help, contact Sapinski Law Office S.C. We offer free consultations, so call (877) 939-1739 to make headway on your debt 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.
