Sapinski Law Office S.C.

How Bankruptcy and Wisconsin Statute Section 128 Effect Wage Garnishment, Property Repossession, and Foreclosures

Many people assume that bankruptcy is their only option when dealing with seemingly insurmountable debt. However, there are other options available. Wisconsin Section 128 allows individuals earning income in the State of Wisconsin to consolidate debt and follow a repayment plan of up to three years. Section 128 is an alternative to bankruptcy, and the following is an explanation of some of the differences similarities between Section 128 and Bankruptcy:

Wage Garnishment

Once you file a Section 128 action in the State of Wisconsin, all of the creditors you include in your filing are prohibited from garnishing your wages. This includes attempts to begin garnishing your wages and garnishments that are already in effect.  Bankruptcy, which is governed largely by federal law, will put a stop to both pending and active wage garnishments as well.

Property Repossession

Property repossession occurs with secured loans.  These are loans where you  have pledged property (such as a car or furniture) as collateral, giving the creditor a lien on that collateral. While Wisconsin law allows for secured debts to be included in Section 128 filings, it does not prevent the secured creditor from foreclosing on their lien.  Therefore, it is recommended that you not use a 128 to pay secured debts when you wish to keep the collateral securing the loan.  Chapter 13 Bankruptcy is much more effective in helping you handle secured debts and still keep the collateral that secures the loan.

Foreclosures

Home mortgages are a form of secured debt as well, and it is therefore generally advisable to consider bankruptcy if you are behind on your mortgage and still wish to keep your real estate.  Chapter 13 bankruptcy allows you to cure your default over time and still keep your home.  You may also be eligible to modify your mortgage in Chapter 13.  While a Chapter 7 bankruptcy will  allow you to delay foreclosure, it won’t stop foreclosure completely like Chapter 13 does.

If you are facing serious debt and considering filing for bankruptcy, it is important to explore all of your debt relief options. Sapinski Law Office S.C. is a Milwaukee area law firm that focuses on bankruptcy, Wisconsin Section 128, and debt negotiation. Call (877) 939-1739 to learn how we can help by exploring all of your available options.

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.

Explaining Bankruptcy to Children: Helpful Tips

Bankruptcy is a federally authorized legal procedure that allows you to get a fresh financial start if you are facing insurmountable debt. However, that explanation will probably not be enough to satisfy your children. Here are a few helpful tips on explaining bankruptcy to your children:

Do Not Hide the Problem

Kids may not know what bankruptcy means, but they are likely to sense your financial trouble. This is because children often notice stress and tension in the family. Hiding the problem from your children may cause them to worry more, so it is best to explain the situation if your children are old enough to talk about money.

Keep it Simple

You should explain what it means to be in debt, and you may want to explain what went wrong. This can be an opportunity to teach your children about money and budgeting.

Share Your Plans

You can help relieve some of their anxiety by explaining your plan to get out of debt and move forward. This means that you will need to develop your financial plan before talking to your children. You may even make them part of the solution—for example, explain small things they can do to help around the house and stay within your new budget. While these small steps are not the ultimate cure to your debt, they will help your children feel like they are part of the solution.

Allow Time for Questions

Your children will likely have questions and they may catch you by surprise. If your children are old enough to understand financial issues, they are probably old enough to ask questions that will require a thoughtful answer.

If you are considering filing bankruptcy, talking to your children is one of many issues you will have to address. At Sapinski Law Office, S.C., we care about helping you and your family through the bankruptcy process. We can guide you through your options and answer all of your questions. Schedule a consultation by calling (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.

Bankruptcy Basics: What is the Automatic Stay and What Does It Do?

Bankruptcy is a weighty word that often evokes a strong reaction from people because they have only a general understanding of what it means. However, few people actually understand the details of bankruptcy and how the process works. The following is an explanation of one of these details, the automatic stay, and how it can help you:

What is an Automatic Stay?

An automatic stay is an injunction that occurs automatically when you file for bankruptcy. It stops all creditor action against you, including lawsuits, foreclosures, garnishments, and any other collection activity against you.

How Does this Help Me?

Creditors and debt collectors can be relentless in their attempts to collect the debts you owe. An automatic stay will not relieve you of these debts, but it will stop these creditors and relieve some of the stress while you work through your bankruptcy.

Are There any Limitations?

There can be some limitations. First, bankruptcy filings made in bad faith may result in no bankruptcy stay. Second the automatic stay may not extend to certain debts, such as child support.  Further, in some cases, creditors who can establish certain grounds can go to the Bankruptcy Court and get an order that avoids (or lifts) the automatic stay.  If you have a bankruptcy case that was dismissed and then re-file another bankruptcy within a year after the dismissal of the prior case, the automatic stay will lift 30 days after filing the second case, unless you are able to successfully  bring a motion to the Court that demonstrates your financial circumstances have changed. 

What if a Creditor Violates the Stay?

f a creditor willfully violates the automatic stay, you may be able to recover damages, including costs and attorney’s fees. A willful violation is generally defined as when a creditor takes action against someone in bankruptcy after having knowledge of the bankruptcy filing.

Are you considering filing for bankruptcy? At the Sapinski Law Office S.C., we help you evaluate your situation and will go over your bankruptcy and non-bankruptcy debt relief options. We are a unique kind of bankruptcy firm that has been helping Milwaukee area residents for more than 13 years. 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.

An Overview of Chapter 7 Bankruptcy

Individual debtors have several debt relief options, which include Chapter 7 bankruptcy. This form of bankruptcy allows you to discharge most of your debts, meaning that you are released from your legal obligation to repay these debts. It also prohibits creditors from taking collection action against you.

This video explains some of the basics of Chapter 7 bankruptcy. First, it explains how you must attend a credit counseling program before you will be eligible to file. It also discusses eligibility requirements, such as the “means test”.  Please note the means test requires you to complete a complicated form (22A or 22C) and it is recommended that you complete the form with the help of a bankruptcy attorney.  Finally, the video discusses how nonexempt property can be liquidated and sold in Chapter 7 and the proceeds distributed to your creditors. It should be noted, however, that in most Chapter 7 cases property can be declared exempt and protected from liquidation through careful use of exemptions.  It is also important to note that bankruptcy generally does not relieve your responsibility to pay certain debts, such as alimony and child support.

If you have questions about bankruptcy and whether it is the best option for your case, contact Sapinski Law Office S.C. Call (877) 939-1739 to schedule a consultation about your debt relief options.

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.

Read Through These Articles to Find the Bankruptcy Information You're Looking For

If you are dealing with insurmountable debt, bankruptcy is one option for getting a fresh start. A bankruptcy lawyer can help you through the details, but the following links will provide helpful information about bankruptcy and non-bankruptcy debt resolution options:

• Debt settlement, also known as debt negotiation, is one non-bankruptcy option that may be available to you. This MSN article explores when this debt settlement option makes sense.
• Bankruptcy is governed by federal law and handled by federal courts. The United States Courts website offers helpful information about bankruptcy basics.
• The Federal Trade Commission explains your debt relief optins, including credit counseling, debt consolidation, and bankruptcy.
• Bankruptcy affects everyone’s credit scores differently, depending on your credit history, score before bankruptcy, and your amount of debt.
• This article outlines five steps for rebuilding your credit and finances after filing for bankruptcy.

Contact the Sapinski Law Office S.C. by calling (877) 939-1739 to discuss your debt relief options 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.