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.