Learn how Bankruptcy works, including Chapter 7 & 13, eligibility, exemptions, and impacts on credit. Explore pros, cons, and alternatives to debt relief.

Your finances should be able to help you live the life you deserve. They shouldn’t be a source of constant stress. If you never have enough money to cover your bills, it is probably time for you to make some tough choices. One of these is whether you are going to continue to struggle to pay off debts or if you are going to file for bankruptcy. Just to be clear, bankruptcy isn’t an easy answer to your money woes. Instead, this is something that is going to take time and effort. You will have to go through counseling and take other steps before you will have the case finished. There are several considerations that you need to think about before you file. These can impact your life now and might have longer-lasting ones. For example, your credit report will reflect the fact that you did seek bankruptcy relief. This alone can make it more difficult for you to get credit in the future. We understand that you might feel like you don’t have any options right now. While bankruptcy isn’t usually anyone’s first choice, it can certainly help you regain control of your finances. Once you have this handled, your stress may decrease so that you can enjoy your life again.  If you are ready to file, be prepared to provide an accurate account of your financial situation. The court requires you to do this so that it can determine if you are eligible to file. Don’t worry – we are here to help you with this part of the case, as well as any others that need to be addressed.

Some people try to do anything they can to avoid having to file for bankruptcy. While this is a good thing for many, it is imperative that you make sure that you have a viable option that isn’t going to lead to you being scammed. There are some unscrupulous companies out there that prey on your desire to avoid bankruptcy. One of the best things that you can do if you are in this position is to review the credit counseling or debt relief agency you are considering working with. While there are some that will do what they are promising, you should avoid ones that make promises that seem too good to be true. Sometimes, these companies do nothing more than just call the creditors to see if they can get them to accept a lower total if you pay the balance in full. This is something that you don’t need to pay someone to do as you can make that call yourself. Plus, there is a chance that you won’t be able to pay it all off in one quick payment. A common scam that these companies run is that you must pay the fees upfront for their service. They then tell you that you must pay monthly payments to them, and they will disburse the payments. The issue here is that the money you give them each month never makes it to the creditors. When you are looking for a company to use, find one that offers credit counseling and budget assistance. Check out the pay schedule. You shouldn’t be charged a large amount upfront. Sometimes, you will have a small fee, but the initial consultation is usually free.  If you are taking the time to review credit repair and counseling services, you should make sure that you explore all the options you have. One of these is to file for bankruptcy, which might be a feasible option for you.

Many people inaccurately believe that only people with low income levels struggle with debt. Nothing could be further from the truth. Individuals with low income and bad credit typically can only receive a small amount of money on credit. Even if they secure multiple different forms of credit, from car loans to credit cards, their income will limit how much lenders are willing to give them. Individuals with higher income levels are at risk of receiving far more credit, which can lead to substantially overextending themselves. Higher-income individuals are also more susceptible to the desire to keep up with the Joneses. In other words, when you work in a high-profile and high-paid position, you are more likely to spend money on expensive clothing and fancy vehicles. People with higher incomes can easily find themselves in a financially precarious position as a result of spending on credit. Even people making well above the average wage in Wisconsin could still find themselves unable to handle their crippling debt load. Higher overall income doesn’t preclude bankruptcy proceedings Another assumption many people make is that bankruptcy is only available to those who have low income. While it is true that regulations limit the income of individuals who file for Chapter 7 bankruptcy, that is not your only option for discharging debt in the United States. The cutoff for Chapter 7 bankruptcy is the state median income, which may be substantially lower than your income. However, that doesn’t mean you have to struggle indefinitely to pay your bills while sinking deeper and deeper into debt. You can still qualify for Chapter 13 bankruptcy even if your income is multiple times the state median income. Chapter 13 bankruptcy, also known as a wage earner’s plan, is a viable option regardless of your level of income or how many assets you have accrued as an adult. Chapter 13 bankruptcy allows you to restructure and reorganize debt Unlike Chapter 7 bankruptcy, which allows for the discharge of all unsecured debts following a waiting period and a creditor hearing, Chapter 13 bankruptcy requires scheduled repayments for some time. Typically, the repayment period lasts between three to five years. During this time, you will have to pay a specific amount to the courts every month, which the courts will determine in the early stages of the process. The courts will then distribute those payments to your creditors. So long as you follow the repayment plan as written, at the end of that period, you will receive a discharge of the remaining balances on all of those unsecured accounts. Even if your income is substantially higher than the average in your state, Chapter 13 bankruptcy can allow you the opportunity to start over financially.

Sometimes, a person who is deep in debt won’t have any assets or available money to pay off what they owe. Even making minimum payments is a big struggle. In these cases, a Chapter 7 bankruptcy might be in order, but only if the person can pass the means test. This is a set of guidelines that looks into a person’s financial situation to determine whether they are allowed to file this type of bankruptcy or have to go with a different option. We know that you might have some concerns about this. We can help you find out if you do qualify. If you do, we will help you find out about the process so that you know what to expect. The more you know, the better you might fare during it. One thing to remember about a Chapter 7 filing is that you don’t have to make regular payments to the bankruptcy court. Instead, the bankruptcy court will use your nonexempt assets to pay off what it can from the creditors. If there are balances left, they will be written off. The alternative to this is usually a Chapter 13 bankruptcy, which involves making payments to the bankruptcy court. These are split between your creditors based on a preset list of priorities. Once you make all the payments you are required to make, any balance remaining will be written off by the creditor.  This is a big decision for you to make. We are here to help you determine if a Chapter 7 bankruptcy filing is something you want to do.

One of the possible consumer bankruptcy chapters that some people file when they need this protection is Chapter 13. This is known as the wage-earner’s bankruptcy because debtors have to set up a repayment plan that covers some of the debts they owe. In most cases, the payment schedule will coincide with the debtor’s pay schedule. Understanding which debts must be paid under this type of bankruptcy can help you to determine whether this is the right decision for you or not. There are three types of debts that apply to these cases — secured, unsecured and priority. Each debt you have is placed into one of these categories. Secured debts are backed by assets, such as vehicle loans or mortgages. These must be paid in full as part of the repayment plan you set up with the bankruptcy trustee. Unsecured debts aren’t backed by assets. Credit card and medical debts fall under this category. You must repay at least part of these debts in your repayment plan. Priority debts include things like back taxes and child support arrearages. These must be paid in full during the bankruptcy proceedings. Once your bankruptcy repayment plan is determined, you must comply with it. If you miss a payment, there is a chance that your case might be dismissed by the bankruptcy court. This would allow creditors to start collection attempts again. It might be possible to avoid this from occurring, but you should explore the possibility right away if you know you are going to miss a payment.  Don’t start 2019 off mired in debt. Learn how you can use a bankruptcy filing to your advantage in the new year.

Filing for bankruptcy isn’t something that most people want to do during their adult life. When you are in debt so deep that you can’t find a way to pay at all, you might need to consider bankruptcy. The type of case you file determines what you will have to do. If you have an income that allows, you might file a Chapter 13, which requires you to make repayments to the court. Those payments are divided up by the bankruptcy trustee and sent to your creditors. Some people prefer this type of bankruptcy since they are still paying their debts. Some people might not qualify if their income isn’t enough to cover these payments and the regular life expenses they have. We understand that you have a lot of things that you need to know before you make a decision about filing. Taking the time to understand exactly what is going to happen and learning about how the filing will impact your life might make your decision a bit easier. Still, make sure that you aren’t taking too long. There isn’t any sense in you feeling the financial stress for longer than what is absolutely necessary.  If you are ready to file and reclaim your finances for the new year, we can help you get started. You don’t have to wait to do this. We can help you get moving as soon as you decide that this is the best decision for your finances, so you can start to enjoy the peace that comes with knowing you’ve done what you need to do.

Christmas debt is something that many Americans will accumulate at the end of the year. While there isn’t really anything wrong with this, there is sometimes a problem in January when the credit card bills start coming in. This might bring up the question of how to handle that debt so that you can get the cards paid off quickly. The method you use is going to depend on your situation. You must ensure that you know what balances you carry on your cards. This gives you an idea of what you are going to have to do to get it paid off. You can use this information to set a budget that enables you to get the balances down. Try to pay more than just the minimum balance. When you only pay the minimum required, you will be paying the card off for a long time. Instead, set your budget up so that you can put as much as you can toward your credit card balances. For some people, the realization of the amount of debt they are in is a signal that they need to do something more drastic. In these cases, finding a credit card consolidation company might be necessary. Alternatively, they might choose to file for bankruptcy.  When it comes to your finances, you have to think carefully about what you are going to do. Your decisions now can have a huge impact on your future. Make sure that you aren’t making rash decisions, but don’t wait so long to do something that your situation gets too dire.

When your credit card and other bills become so overwhelming that you are having to figure out what to pay and what to let lapse, it might be time to consider your options for reducing the debt loan. You mustn’t fall for scams and shams when you are in this position. Instead, you need to look into the legal ways to handle your debts. Bankruptcy might be the answer to your problem. People who need to file for bankruptcy protection will need to look into the requirements for the type of case they want to pursue. For most consumers, there is the working man’s bankruptcy, which is Chapter 13, or liquidation bankruptcy , which is Chapter 7. In Chapter 13, you would make payments to the bankruptcy trustee to pay off all or most of the debts you owe. While you don’t make those payments in Chapter 7, your nonexempt assets are liquidated to cover some of the debts you owe. Once your case is over, it will be discharged. At this time, the debts included in the case will be forgiven if any balances remain. You expect Chapter 7 to be over much faster, usually in three to six months. The repayment plan for Chapter 13 usually lasts three to five years, so the case can’t be discharged until then.  Both types have specific requirements. For example, you can’t have income and assets over a specific amount for Chapter 7. You have to be able to make payments to the court and can’t have debts over a certain limit for Chapter 13. While this might seem confusing, it isn’t when you work with someone who is familiar with the laws governing this type of financial protection.