In the state of Wisconsin, consumers with an overwhelming amount of debts could find a resolution through bankruptcy. After qualifying for their preferred form of bankruptcy, the consumer obtains assistance with settling their debts. If you have considered filing a claim, you should contact a bankruptcy attorney in Milwaukee WI.
Wisconsin Bankruptcy Rules and Regulations
First, a bankruptcy attorney performs a means test for all claimants with income levels that exceed the median income for Milwaukee County. The median income for your bankruptcy is based on how many members are in your household. For example, if you have four members in your household, the median income level that applies to you is $80,198. The means test is necessary only if your income is more than this value.
Your attorney conducts the means test to establish whether you qualify for chapter 13. However, you may also qualify for chapter 7, if you prefer. The attorney needs to review your income records for the six-month period prior to initiating bankruptcy. Consequently, this value is used later in your case to establish the value of your expendable income and monthly payments.
Which Chapter is Right for You?
A Bankruptcy Attorney in Milwaukee WI establishes if your income qualifies for chapter 7. If your monthly income is lower than $7,475, you are eligible for this form of bankruptcy. However, for any consumer with a monthly income of $12,475 or greater, chapter 7 is not an option in Wisconsin. It does not matter if you have adequate property or assets to fulfill the requirements of this bankruptcy. The court will establish that your income level should allow you to submit monthly payments through a chapter 13 plan.
When you qualify for both chapters, you should weigh the odds of each option. For instance, late mortgage payments leave you open to possible foreclosure. A chapter 7 bankruptcy will only protect your property for up to six months. Alternately, a chapter 13 bankruptcy provides an automatic stay for up to five years. If you would like to learn more about these chapters and how they will affect you, contact a Bankruptcy Attorney in your local area.