Debt does not discriminate. Whether your income is $25,000 or $125,000, you may still find yourself struggling to make ends meet. People whose income exceeds $100,000 often worry that they will not be eligible to file for bankruptcy. The good news is there are options. Understanding how bankruptcy works and what alternatives are available is the first step.
In our previous post, we began looking at the topic of motor vehicles in bankruptcy, noting that the way motor vehicles are dealt with depends on the form of bankruptcy that has been filed. In Chapter 7 bankruptcy, the concern has to do with the value of motor vehicles to be exempted from liquidation.
In our last post, we began looking at the decrease in bankruptcy filings over the last six months. As we noted, the decrease was primarily in Chapter 7 filings, and there are good reasons for this. Commentators have said that there has been significant improvements in the economy, such as a decrease in unemployment, improvement in the real estate market, and an increased availability of credit.
For the first time since 2007, when the Great Recession began, bankruptcy filings in Wisconsin fell to less than 10,000 filings at mid-year. According to data from the U.S. Bankruptcy Court, there were 9,058 bankruptcy filings in Wisconsin between January and June, a nearly 11 percent decrease from last year.
It's become a familiar story by now: many young people, after having completed their education, are unable to come into their own independence. Crushing student loan debt from inflated education costs combined with continuing challenges in the job market has been a good recipe for bad economic progress for many educated young Americans.
Last time, we looked very briefly at the homestead exemption available under both Wisconsin and federal law. The homestead exemption, as we've mentioned allows a debtor in Chapter 7 bankruptcy to exemption a certain amount of equity in his or her home.
In recent posts, we've been discussing the topic of property loss in bankruptcy, looking particularly at the issue of asset exemptions in Chapter 7 bankruptcy. As we noted last time, every state has different laws when it comes to Chapter 7 exemptions, and Wisconsin gives debtors the option of whether to choose state or federal exemptions.
Last time, we began discussing the common misconception that a bankruptcy filing puts a debtor at risk of losing all his or her assets. As we've pointed out, this is simply not true, though the extent of asset loss depends on the form of bankruptcy for which the debtor files. As we noted, a debtor may not lose any assets in Chapter 13 bankruptcy.
Bankruptcy is a process intended to help seriously struggling debtors obtain financial relief. Although the rules of bankruptcy are relatively straightforward in most cases, there is a fair amount of misunderstanding out there when it comes to understanding the process and the impact it will have on a debtor, both positive and negative.
In a previous post, we mentioned that fraudulent transfer may be found in cases where a debtor voluntarily or involuntarily transferred assets or incurred debts with actual intent to hinder, delay or defraud any entity to which the individual was indebted. We also noted that fraudulent transfer may be found in cases where the debtor received less than reasonably equivalent compensation for the transfers or debts. Here we wanted to say a bit more on this topic.