Last updated 8 months ago
Bankruptcy laws were created to give people who can no longer pay their debts a chance for a fresh financial start. Bankruptcy cases can only be filed in Federal Court, and the two most common chapters used by individual debtors are Chapters 7 and 13 of the Bankruptcy Code. A bankruptcy lawyer can help you explore which option is best for you. Here is some basic information that will need to be considered when deciding what type of bankruptcy is right for you:
Chapter 7 Bankruptcy
In Chapter 7 bankruptcy cases, many of your debts are wiped-out (“discharged”) within a matter of months. However, a court-appointed bankruptcy trustee will gather any non-exempt assets. After selling these assets, he/she will use the proceeds to pay your creditors. Chapter 7 may be a good option for you if your assets can be declared exempt and if your income is barely sufficient to pay your monthly living expenses.
Chapter 13 Bankruptcy
Chapter 13 gives debtors who have a regular source of income the chance to restructure and re-pay their debts via a three-to-five-year repayment plan. This type of bankruptcy is often used by debtors who have fallen behind on secured debts like vehicle or mortgage loans. It is also used to pay-off obligations that may not get discharged in Bankruptcy, like taxes. If your income is too high to make you eligible for Chapter 7 Bankruptcy of if you have non-exempt assets, Chapter 13 may be your only option.
Choosing the Right Option
Deciding whether to file Chapter 7 or Chapter 13 can be very complicated and it depends on a variety of circumstances. Speaking with an experienced bankruptcy attorney is one of the best ways to determine whether bankruptcy is right for you and the Chapter that is best for your situation.
Filing for bankruptcy is a major decision with long-term consequences. At the Sapinski Law Office, S.C., we have been helping Milwaukee-area residents explore their debt relief options, including bankruptcy, for more than 15 years. Attorney Andrew Sapinski is committed to helping clients through this difficult time. Call us today at (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 8 months ago
Debt negotiation is a way to reduce your debt. It results in the creditor agreeing to settle your debt in exchange for an amount that is less than the amount you actually owe. While each situation is different, it is not uncommon for a creditor to forgive up to 80% of the balance owed. It is a great non-bankruptcy solution that allows borrowers to get out of debt and begin a fresh start. A Milwaukee bankruptcy lawyer can answer your specific questions about bankruptcy in Wisconsin, but here is a brief introduction of what to expect during the debt negotiation process:
Communication with Creditors
During the debt negotiation process, you can expect a number of calls and letters to be exchanged between your creditors and the law firm acting on your behalf. The timing of these communications is important because it can affect the settlement amounts you get. If the creditor is called too early, they may not be willing to settle. If they are called too late, your situation may get worse. A good attorney with experience in negotiation will know when it is best to settle with each of your creditors. Remember, if you have hired an attorney to settle your debts for you it is very important that you not interfere and allow him/her handle all communications with your creditors.
Funds to Settle
Most creditors require that you pay the settlement amount in a lump sum and right away. That means you must have funds available if you want to pursue this option.
Time to Negotiate
The negotiations process does not happen overnight. In fact, it is not uncommon for it to last 5 to 12 months, however, each case is unique. In some cases, it is possible to settle with one creditor at a time and give you more time to come-up with the funds necessary to settle.
Are you struggling with debt? The Milwaukee bankruptcy team at Sapinski Law Office, S.C. can help you explore all of your bankruptcy and non-bankruptcy options to determine what is best given your financial situation. We provide Milwaukee-area residents with personalized attention and trustworthy answers to your questions. 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 9 months ago
Readers who found our recent look at important bankruptcy terms useful should explore these links to learn more about the federal bankruptcy process:
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Your employer should have no reason to know that you filed for bankruptcy, even though your filing becomes public information. Read more on Bankrate.com.
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The National Association of Consumer Bankruptcy Attorneys explains the pros and cons of filing for bankruptcy in this volatile climate.
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Wisconsin is in the lower half of the nation when it comes to the mean net scheduled debt per bankruptcy filing. The US Courts website created an infographic showing this data.
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Budgeting can be hard after a bankruptcy proceeding. Mint.com can help you manage your spending while explaining the importance of your FICO score.
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Do you need a comprehensive introduction to US bankruptcy law? The American Bar Association published a helpful article on that very topic.
Deciding to file for bankruptcy requires considering a number of factors. A bankruptcy lawyer can help you discern whether or not this is the best financial choice for you. Milwaukee-Waukesha residents who are falling behind on their loan payments should call Sapinski Law Office, S.C. at (262) 782-9400 to schedule a free and confidential bankruptcy evaluation.
Last updated 9 months ago
The legal process of filing for bankruptcy and seeking a discharge of your debt(s) can be daunting. Although an experienced bankruptcy lawyer can walk you through all of the steps, it can be helpful to first familiarize yourself with the basic vocabulary. Some of the most common terminology used during the bankruptcy process includes:
Secured Debt
This is a loan or debt that is backed by property. The most common secured debts include mortgages and car loans. In the event of non-payment on a secured loan, the creditor can take or repossess the property (their collateral) and sell it. The money received from the sale is then applied to the balance you owe.
Unsecured Debt
No property is pledged as collateral on this type of loan. Credit cards are the most common type of unsecured debt, as the creditor cannot directly take away any of your property if you miss a payment.
Chapter 7
This type of bankruptcy is perfect for Americans with a large amount of unsecured debt who want to eliminate their debt and start all over. It is an effective way to get creditors to stop calling and wipe away overdue credit card balances. However, only those who meet certain income requirements are eligible to file under Chapter 7.
Chapter 13
If you are behind on your mortgage or car loan and wish to keep the collateral securing the loan, Chapter 13 is the appropriate type of bankruptcy. It may also be required if your income is too high for Chapter 7. Chapter 13 can allow you to keep your home and/or car, modify the loan terms and consolidate your debt so that you can get debt free in 3-5 years by making just one low monthly payment.
It can be difficult to decide on the right type of bankruptcy for your specific financial situation. If you live in Wisconsin, contact bankruptcy lawyer Andrew Sapinski with the Sapinski Law Office, S.C. by calling (262) 782-9400. Our Milwaukee-based bankruptcy and debt relief team is dedicated to applying the law to improve your financial situation. Call today for a free and confidential evaluation.
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 10 months ago
The current recession has left many American families scrambling to make ends meet. If you are drowning in credit card debt or struggling to make your mortgage payments, bankruptcy may offer a solution to your problems. There are many misconceptions and myths. Before filing bankruptcy, many incorrectly fear they will be discriminated against or will never have credit again. This is not true.
You Will Not Be Discriminated Against
Although it may seem like declaring bankruptcy is a very public process, the truth is that few will find-out you have filed and you will not face discrimination. For example, your employer is not likely to find out about this action and cannot use bankruptcy filing against you in the workplace. Generally, aside from your bankruptcy lawyer or anyone directly involved in the process, no one else will know about your bankruptcy unless you decide to tell them. Student loan creditors also cannot discriminate if you file bankruptcy. Further, governmental units cannot discriminate against bankruptcy debtors in regards to employment and to licenses and permits.
You Can Still Use a Credit Card
Obtaining a secured credit card backed by a bank account or other assets is a feasible course of action following bankruptcy. In fact, obtaining a secured credit card can even help your financial situation. A secured credit card may allow you to shop online, carry fraud protection, and rebuild your credit by paying off the balance every month.
Your Credit Score Will Not Be Destroyed
Depending on the condition of your finances, bankruptcy can often improve your credit score by wiping away bad debts. Once the overdue balances are discharged, you can take steps to improve your financial history. Sapinski Law Office, S.C. routinely helps people re-build their credit score after bankruptcy. Many who follow our program find their credit to be better with bankruptcy (than if you had not filed).
If you are overwhelmed by your loans and creditors will not stop calling, it may be time to talk with a bankruptcy lawyer to discuss your options. Milwaukee residents should contact Sapinski Law Office, S.C. to schedule an appointment with our dedicated bankruptcy and loan modification team. Call (262) 782-9400 to schedule an appointment in the Milwaukee-Waukesha area.
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.
