Financial Hardship
Bankruptcy and Chapter 128
Bankruptcy is a big step and one not to be taken lightly. But it is a right of federal protection afforded to you. Chapter 7’s filings are sometimes known as a “simple” bankruptcy. There are restrictions as to who may file and what debt you may “discharge” or eliminate in a bankruptcy. The goal in a Chapter 7’s bankruptcy is to relieve yourself of the debt you can no longer repay and keep the property you need and put yourself in a better financial position to enable you to move forward.
If only certain debts, such as high interest debts or a medical bill, are causing you to fall behind there are other options, such as a Voluntary Amortization of Indebtedness under a Chapter 128. A “chapter 128” as they are commonly referred to, is a state proceeding (bankruptcy is federal) which allows you to take an unsecured debt and pay it off over a three-year period to time without concern of garnishment, late fees or additional interest adding up while you are trying to pay it off.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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FREQUENTLY ASKED QUESTIONS
Financial Hardships
My house is in foreclosure, do I have to file bankruptcy because of it?
Unlikely, if that is the focus of your financial hardship. Most residential foreclosures are “non-deficiency” meaning that while you may lose the right to retain your home, you will not likely be required to pay the difference between what the home sold at sheriff sale and the loan amount or for attorney fees incurred by the bank.
I cannot pay all my bills, is bankruptcy my only option?
Wisconsin has an alternative called a Chapter 128, which allows you to put one or several unsecured debts into a thirty-six (36) month repayment plan, without paying additional interest and/or late fees while you are in repayment.
Will I lose my property if I file bankruptcy?
You are allowed to choose from either federal or state exemptions, which protect both real property and personal property in the event of filing of bankruptcy. Which one you choose depends on your individual situation.
Can I get rid of all my debt if I file for bankruptcy?
That depends on the type of debt you have. Some debts, such as student loans, some taxes, and restitution are not likely to go away, but most credit card and medical bill type debt will go away.