Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

Looking at the reasons behind the 2016 decrease in Chapter 7 bankruptcy filings, P.1

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.

The peak of bankruptcy filings was back in 2010, when nearly 30,000 were filed by mid-year. Since that time, there has been a steady decline. The trend in Wisconsin basically tracks the national trend, though the decrease is significantly greater. 

Sources said that three-quarters of the filings in the nine year period were Chapter 7 filings. This is an interesting point, especially because the data showed that the number of Chapter 13 filings in the first half of 2016 is about the same as last year. Why would the number of Chapter 7 filings be decreasing, but not Chapter 13 filings?

Chapter 7 and Chapter 13 bankruptcy, of course, are structured differently. In Chapter 7 bankruptcy, the process works by liquidation of non-exempt assets and paying back creditors with the proceeds, whereas Chapter 13 bankruptcy involves the establishment of a repayment plan which lasts three to five years. In Chapter 7 bankruptcy, a debtor does not need to have a regular income, whereas Chapter 13 bankruptcy cannot work without a regular income. This is why Chapter 13 is sometimes called a wage earner's plan.

In our next post, we'll continue looking at this story, particularly as it relates to the differences between Chapter 7 and Chapter 13 bankruptcy.

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-326-9231
Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 414-326-9231
Phone: 262-326-1669
Kenosha Law Office Map

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

Phone: 414-326-9231
Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 414-326-9231
Phone: 608-260-7133
Madison Law Office Map

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

Phone: 414-326-9231
Phone: 414-973-8662
Glendale Law Office Map

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

Phone: 920-280-3838
Map & Directions