If you consider filing for bankruptcy, a test outlined in the U.S. Bankruptcy Code makes figuring out if you qualify, along with determining which chapter of bankruptcy you should file, fairly simple. If you want to file for bankruptcy, you must complete the “means test.”
Filing for bankruptcy is an important and difficult decision for a Wisconsin consumer. It is a step that offers many benefits and advantages for people facing specific financial circumstances. Despite the stigma often associated with this decision, Chapter 7 or Chapter 13 bankruptcy can offer you a way to deal with debt and put a halt to many of your financial difficulties.
Many Americans struggle with debt. In fact, most consumers carry a balance on credit cards, have student loans or unpaid medical bills. When these bills begin to outpace a person's ability to pay, it can quickly lead to a spiral of harassment from debt collectors and threats of foreclosure and more. If you choose to file for bankruptcy, you may regain control of your financial future.
March and April are peak months for filing bankruptcy and attorneys know why: The people who come to them are unable to even afford the small legal fees associated with bankruptcy petitions without their tax return money.
It's no secret that many Americans have very little saved up for emergencies -- and those struggling under crushing debt probably have even less than average. Some people rely on their tax returns to alleviate some of their accumulated debt, especially if they went a little overboard during the holidays.
Once the decision has been made to pursue bankruptcy, people often examine the different types of bankruptcy available to them. Most individuals file either a Chapter 7 or Chapter 13 bankruptcy.
For many, Chapter 7 bankruptcy is preferable because they want to get through the bankruptcy as soon as possible. But Chapter 7 bankruptcy bankruptcy is not available to everyone. To be eligible you must be able to pass an income and expense test known as the "means test."
When looking for debt relief options, it's normal to question how each option really works and how each actually helps your situation. In Wisconsin, there are many possible solutions. The best option for you will depend on your individual situation.
People often start out by talking with their friends or consulting the Internet for options. This may be a good option if you are looking for referrals for home services, but for bankruptcy it can be problematic because there are many myths and a great deal of misinformation about bankruptcy.
Bankruptcy is one of your options. Learn about the bankruptcy process, how long it takes and what is included in a bankruptcy discharge. How does discharge actually work?
Are you one of the numerous Wisconsin residents struggling to make ends-meet? Like many people, you might live paycheck-to-paycheck. Sometimes the money runs out before another paycheck arrives in your bank account. Many people in this situation turn to payday loans as the answer. Have you fallen into this trap?
Chapter 128, which is also known as amortization of debt actions, allows Wisconsin residents who have a steady income to pay down their debts over a period of three years. The payments are made monthly and the period cannot extend past three years.
There is a big difference between Chapter 128 and Chapter 7; the person filing must make payments in Chapter 128 whereas no payments have to be made in Chapter 7 to have debt wiped out. When filing for Chapter 128, the debtor must pay all of his or her debts in full under the plan put in place.
People from all walks of life can end up in financial trouble -- including those who work for federal agencies and contractors who have to pass a security clearances as a condition of employment. Many of those people are afraid of bankruptcy court because they're afraid that it will end their security clearance, costing them their job.
If that's your situation, you're probably struggling unnecessarily. In fact, you may actually be putting your security clearance at greater risk by not filing for bankruptcy.
Women's fashion retailer Vanity has filed for bankruptcy, which will affect stores in the state of Wisconsin. The company began its going out of business sale back on March 3. All 137 of Vanity's stores in 27 states will close with the bankruptcy filing. The company filed for Chapter 11 bankruptcy on March 1.
President and CEO of Vanity, Mickey Quinn, released the following statement:
There are times that debt collectors cross the line and become abusive and harassing. Many know perfectly well that they're in violation of the Fair Debt Collection and Practices Act, but they're gambling that you don't know that -- or won't do anything about it.
Sometimes, that gamble backfires on them in a big way. For example, a Missouri woman endured months of harassment from a debt collector over a debt she didn't believe she owed (and she didn't). When her son got involved and pushed back, the debt collector sued the woman.