How Bankruptcy Can Benefit You

According to the United States Bankruptcy Code, consumers have the right to file a bankruptcy petition and obtain relief from their financial obligations to get a fresh start, debt-free. Most consumers will file for Chapter 7, which liquidates non-exempt assets then discharges debt, or Chapter 13, which helps the debtor create a manageable repayment plan.  No matter what type of bankruptcy the petitioner chooses, he or she can obtain relief in the following ways:

1. End to Creditor Harassment

One of the most difficult parts of day-to-day life as a debtor is the constant reminder of debt in the form of harassing phone calls or letters from creditors. As soon as a bankruptcy is filed, an automatic stay is imposed that stops all activity against the debtor and his/her property. The stay stops just about everything, including collection notices, phone calls, utility disconnection and active wage garnishments.

2. Protection of Property

The bankruptcy stay will also stop any collection activity taken against a petitioner’s property, such as vehicle repossession and foreclosure. If your car has already been repossessed, you may be able to file Chapter 13 and get the vehicle back.  Chapter 13 will also help you repay your vehicle loan under terms that are easier for you.  For example, under Chapter 13 you can reduce the interest rate on the loan and, in some cases, you can force the creditor to only accept an amount equal to what the car is worth.  Chapter 13 also stops home foreclosure and gives you time to get current on mortgage loans.

3. Elimination of Debt

Bankruptcy can be effective at eliminating debt, especially unsecured debt. Unsecured debt refers to obligations not backed by a specific asset. Some common examples of unsecured debts that are dischargeable in bankruptcy include:

• credit card payments
• medical bills
• rent 
• utility payments

Remember, certain debts, such as recent tax debts and most student loans are not dischargeable in bankruptcy.

Secured debts are debts that are secured by some sort of collateral.  They can be eliminated in bankruptcy. However, if you chose to discharge (eliminate) those debts, you typically will be forced to return the collateral that secures the loan.  For this reason, most Debtors who file Chapter 7 often chose to continue to pay their mortgage loans and car loan payments. 

Contact Our Milwaukee Bankruptcy Firm For Help

At Sapinski Law Office S.C., we understand the stress and uncertainty that accompany mounting debt obligations. It is our mission to help our clients find the best bankruptcy or non-bankruptcy debt relief option to suit their financial needs. If you would like to schedule a free consultation with a Attorney Sapinski, give us a call at (888) 782-9423. Our bankruptcy firm has multiple locations throughout the Milwaukee metro area. 

Will Filing For Chapter 7 Bankruptcy Help You?

If you are facing insurmountable debt & unaffordable creditor payments, then you have options! Chapter 7 bankruptcy allows those who cannot afford to pay their bills to wipe-out debt and get a fresh start on their finances. When you work with an attorney, he or she will determine what type of bankruptcy you should file: Chapter 7 or Chapter 13.  Factors include:

Type Of Debt

Certain debts, such as child support and recent tax debts cannot be wiped-out (discharged) in bankruptcy. Also, most student loans are not dischargeable. Recent credit card use may be considered fraudulent and non-dischargeable in bankruptcy. Chapter 7 will not be for you if your debts will survive the Court’s discharge order.

Assets

When you file bankruptcy, a Trustee is appointed who has the power to liquidate assets and use the proceeds to pay your creditors. This Trustee can only take assets that are not declared exempt. Wisconsin has a wonderful set of exemptions available and very few who file bankruptcy in this state ever stand to lose their property. Unfortunately, there are some exceptions. If the available exemptions are insufficient to protect your assets in Chapter 7 bankruptcy, you may want to explore another debt relief option.

Past Financial Dealings

Your attorney will want to know about assets you have sold or transferred in the past. If you sold a major asset and did not receive fair value in return, the Chapter 7 Bankruptcy Trustee may go after the transferee when you file bankruptcy. Also, payments made to friends or relatives within the year before your bankruptcy may be considered preferential and the bankruptcy trustee may pursue them for the money they got from you. Incurring debt right before you file, especially credit card debt, can be considered fraudulent.

Get A Free Consultation With Our Firm

At Sapinski Law Office, S.C. we will help you review all the pros and cons behind filing Chapter 7 bankruptcy so you can determine whether it is the right option for you. Call now to schedule a free consultation with Milwaukee bankruptcy attorney Drew Sapinski. He has over 15 years experience and can answer all your questions. Call (888) 782-9423 today.