Many Americans who were already struggling with a difficult financial situation prior to Covid 19 may find they are up against a wall with the economic realities triggered by the pandemic. Those who have been laid off from a job or cannot find enough work may struggle to pay bills despite widespread stimulus measures on the part of local, state and federal government or creditors efforts to provide more time. In some cases, bankruptcy protection is a good strategy to take control of your finances, turning a difficult financial situation around.
Chapter 7 Bankruptcy Wisconsin
Chapter 7 bankruptcy protection is a good option for individuals and families who have relatively few assets and insufficient income to cover their expenses. Those who qualify can discharge unsecured debt such as credit card debt or medical bills while exempting certain property such as a home, car and retirement accounts.
Timing Your Chapter 7 Bankruptcy Filing
The chapter 7 means test looks at your income and expenses over the last 6 months to determine eligibility. If you have just suffered a job loss, you may have to wait a few months in order to qualify, timing your filing to include the maximum debt. If you anticipate that you will accumulate medical debt, for example, remember that only debt accrued before filing is eligible for discharge and that discharging debt in bankruptcy is only available once every 7 years.
Chapter 13 Repayment Plan
Chapter 13 is intended for individuals and families that continue to have income flowing in, but are struggling to fully meet their obligations. They may have more assets they wish to protect that are not exempt in a chapter 7 bankruptcy.
A Chapter 13 repayment plan can provide time to catch up on mortgage and car payments to avoid home foreclosures or car repossessions. Payments are calculated using discretionary income over a 3 to 5 year period with most remaining debt discharged at the end of the payment plan.
Contact an Experienced Wisconsin Bankruptcy Lawyer
If you are struggling with a difficult financial situation made worse by the uncertainties many Americans are facing during the Covid 19 pandemic, it is advisable to seek more information regarding bankruptcy protection. Although bankruptcy is not appropriate for every situation, for many, chapter 7 or 13 bankruptcy is a good strategy to recover their financial footing. Our Waukesha bankruptcy attorneys offer straightforward representation for clients struggling with debt in the Waukesha area. Contact us online or call 262-542-3900 for your free consultation.