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Important rules in bankruptcy filing and exemptions in Wisconsin

Many celebrities are considered affluent people, with their million dollar contracts and other assets. However, when it comes to personal bankruptcy, celebrities are no different than other residents in Appleton, Wisconsin. Bankruptcy law applies to all people, both wealthy and average. The same goes for the requirements for filing for bankruptcy, the debts that can be discharged and bankruptcy exemptions.

For example, DMX, a well-known rapper, filed for Chapter 11 bankruptcy in July. Reportedly, the 42-year-old rapper owed a total of $1.8 million in debt. His debt includes contract disputes, goods and services and child support. Additionally, his biggest debt is $1.3 million in unpaid child support to the mothers of his 10 children.

However, recent reports stated that his bankruptcy filing has been dismissed. The bankruptcy court accused DMX of failure to disclose his actual income, assets and other financial details. As the bankruptcy court prohibited DMX from filing for bankruptcy for 18 months, the creditor may go after his possessions and his share of the rapper’s Mount Kisco Home.

There may be cases of bankruptcy filings that have been dismissed. In the case of DMX, he can still file for bankruptcy after 18 months, but he may need to consider certain requirements to successfully discharge the debts.

Additionally, Wisconsin residents should remember that not all kinds of debt can be discharged through bankruptcy, such as child support, alimony and tax debts. Full disclosure of assets, income and properties should be made because it determines if the debtor qualifies for the requirements.

Like DMX, most people who plan to file for bankruptcy in Wisconsin may worry about their personal property such as a home, cars and retirement savings. Fortunately, filing for bankruptcy includes certain exemptions, particularly in Chapter 7 bankruptcy. Bankruptcy exemption may exclude a person’s automobile, personal property and home, depending on the state laws.

Those seeking to file for bankruptcy should understand the process and their rights. This will help them make the proper decision and get them back on track financially.

Source:¬†USA Today, “Rapper DMX’s bcankruptcy filing tossed,” Ernie Garcia, Nov. 11, 2013

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