Kenosha, Wisconsin Bankruptcy Attorneys
Discharging Credit Card Debt and Avoiding Foreclosure
If you're facing foreclosure and are unable to make the minimum payment on credit card bills and car loans, bankruptcy may be the best option available for saving your home and regaining your financial footing. Once you file for either Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect, requiring creditors to cease all collection actions and banks to halt foreclosure proceedings. While the stay is temporary and may be challenged, it can help you avoid home eviction or the repossession of your cars and appliances. At Miller & Miller Law, LLC, our bankruptcy lawyers can review your financial situation and discuss the best options available to you for getting out from under debt and saving your home.
If you're receiving calls from collection agencies and stern letters from creditors or your bank, contact Kenosha, Wisconsin bankruptcy attorneys at Miller & Miller today to schedule an appointment and discuss your situation.
Filing for Chapter 7 Bankruptcy
In order to file for Chapter 7 bankruptcy you must first qualify according to a means test. Generally speaking, if your monthly income is less than Wisconsin's mean monthly income for houses of a similar size, you can file under the terms of Chapter 7. If you qualify, your credit card balances, loans, and other forms of unsecured debt will be discharged. While there is a homestead exemption, as well as exemption for other kinds of property in Wisconsin, the court may sell some of your property in order to pay all or a portion of what you owe creditors. Depending on your situation, you may also be able to discharge tax debt as well.
After having your unsecured debt wiped clean, you may have enough disposal income to bring your mortgage current and maintain monthly payments. If not, you may be able to convince your bank to modify your loan; however, loan modifications are not part of Chapter 7 bankruptcy, nor are banks required to offer them after you've filed for bankruptcy.
Filing for Chapter 13 Bankruptcy
If you don't meet the means test for Chapter 7 bankruptcy, you will likely have to file under Chapter 13. Chapter 13 bankruptcy is essentially a reorganization of your unsecured debt. Often referred to a "wage earners bankruptcy," you will be required to submit a repayment plan for approval by the court. Typically, under the terms of Chapter 13, you must repay 80% to 100% of what you owe over a 3 to 5 year period. While your debts will not be automatically discharged as in Chapter 7, you can include debt on cars, appliances, and loans in your repayment plan. As a result, it's easier to avoid foreclosure and the repossession of your goods under Chapter 13.
Once a bankruptcy judge reviews your repayment plan and approves it, a trustee may be appointed to distribute your payments to creditors per the terms of your Chapter 13 plan. While creditors can object to the terms of a proposed plan, once a judge accepts it there is very little they can do.
Contact Kenosha, Wisconsin Bankruptcy Attorneys at Miller & Miller
If monthly bills and calls from creditors have your worried about losing your home, contact Kenosha, Wisconsin bankruptcy attorneys at Miller & Miller Law, LLC. We can review your situation and explain the best options available to you.
