In Wisconsin, bankruptcy is a viable opportunity to settle debts. The consumer may qualify for this action based on their income and value of their assets. A bankruptcy Lawyer in Ozaukee WI area could help them with these efforts.
What are the Requirements for Bankruptcy?
The first requirement for all bankruptcy cases is to attend a credit-counseling program. Federal laws require this course to prepare consumers for bankruptcy. It prepares them for repairing their credit after the case is discharged. The case cannot move forward until a state-approved program provides a certificate of completion to the consumer.
What is the Difference Between Chapter 13 and 7?
Chapter 13 is a form of bankruptcy that offers a structured repayment plan. It lasts up to five years and offers an automatic stay for the full duration of the case. The consumer pays a monthly payment according to this plan. The consumer must possess an income that is greater than the county median to qualify. The median income for Ozaukee County is $62,745.
Chapter 7 is liquidation. The consumer must own enough property or assets to pay off their debts. These items are sold through the court. The consumer receives all exempted values for the property. It takes up to six months to complete. If the consumers’ home is included, it is protected for the six month period only.
Are There Alternatives?
Consumers have the option to seek settlements through their creditors. A lawyer could help them to achieve these reduced balances. If they receive a settlement, they must pay it off as directed by the creditor.
A debt consolidation loan could also help. This loan allows them to pay off their debts by taking out a new loan. This could help them to achieve a lower interest rate in some cases. However, their credit score affects if they qualify for the loan.
In Wisconsin, consumers have two viable opportunities through bankruptcy. These opportunities help them to become debt-free. Consumers should review the requirements and restrictions for each chapter before they choose to file. When they are ready to file, they should contact a Lawyer in Ozaukee WI to help them with their claim.