Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

What are the different types of bankruptcy? (Part 2 of 2)

Welcome back. Last week we discussed Chapter 7 bankruptcy and Chapter 11 bankruptcy. Today, we will explore Chapter 13 bankruptcy and alternatives to bankruptcy, including Wisconsin's Chapter 128 Reorganization law.

Like Chapter 11 bankruptcy, Chapter 13 bankruptcy is also a form of legal debt reorganization but it is for individuals who have a regular source of income and might not qualify for a Chapter 7 bankruptcy. It also involves a plan to repay creditors, usually over the course of three to five years.

Chapter 13 makes better sense than Chapter 7 in some cases, especially when a filer has a large asset he or she wants to protect. However, it is much different because from Chapter 7 because the filer does not receive an immediate discharge of debts like in a Chapter 7 filing.

Another benefit of Chapter 13 is that it is effective a stopping garnishments, foreclosures and repossession threats.

As you can see, for a consumer who is in over his or her head with debt, Chapter 7 and Chapter 13 bankruptcy can provide relief. But bankruptcy isn't always the right choice, either. That's why Wisconsin residents should consider bankruptcy alternatives such as debt settlement, debt negotiation and Chapter 128 Reorganization before deciding to file.

Under Wisconsin law, Chapter 128 Reorganization is similar to Chapter 13 bankruptcy in that it allows individuals to pay back unsecured debt over a 36-month period; however, the process is much simpler. On the other hand, filing for Chapter 128 Reorganization can be expensive, so it isn't always the best option.

An experienced bankruptcy lawyer in your area can help explain the different types of bankruptcy available in more detail, as well as bankruptcy alternatives, including those available under state law. As this is an extremely important and complex issue, helpful guidance is a must.

Source: USCourts.gov, "Bankruptcy Basics: Process," May 9, 2014

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.