If you are like most residents in the Appleton region of Wisconsin, filing for bankruptcy is the last debt relief solution on your list of options. People naturally fear bankruptcy even though it does not carry the stigma it once did. When you realize that this option is your best choice, you must then decide whether to pursue a chapter 7 or a chapter 13 bankruptcy.
If you listen to your peers, they might tell you to take chapter 13 off the table if possible. However, we like to advise our readers to consider all options before making a decision. A chapter 13 bankruptcy is known as a reorganization bankruptcy because it enables you to reorganize your debts. This option allows you to hold on to much of your property, meaning that you will not lose your home and other assets.
Under a chapter 13 bankruptcy, you must create a payment plan showing how you intend to pay off your debts with your own income. Chapter 13 typically provides you with three to five years in which to tackle your debt. For many in debt, this is the hardest part of a chapter 13 bankruptcy as the repayment plan must be very detailed.
You should also know that not all people are eligible for chapter 13. For example, if your income is too low or is irregular, you might not qualify. Further, the law imposes limits on your debt that may make you ineligible to pursue a chapter 13 bankruptcy.
Fortunately, you have more than one option for debt relief through bankruptcy. We urge you to read more about your options in Wisconsin by exploring the information on our website.