Owning and operating a small business in Wisconsin is not always easy. Small business owners may experience financial troubles occasionally, but there are times when circumstances are quite serious. If your business has accumulated a lot of debt and is not able to manage expenses and payments, you may consider the benefits of filing for bankruptcy for your small business.
Wisconsin consumers who are struggling with debt know how stressful and difficult it can be to deal with unpaid balances and pressure from debt collectors. If you are facing this situation yourself, you may understand that bankruptcy could offer you a way out. However, the decision to go ahead and file is not an easy one to make.
Dealing with unmanageable debt, missed payments and harassment from creditors can be overwhelming, leaving you feeling hopeless. When you are in debt, it may feel like there is no way out, but in reality, Wisconsin residents have various options available to them. You may know that you could file for either Chapter 7 or Chapter 13 bankruptcy, but for many consumers, Chapter 7 is a beneficial choice.
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.