Category: Bankruptcy


Will They Take My Stuff If I File Bankruptcy?

One of my clients’ biggest concerns when filing for bankruptcy is their property. They often think that after filing the court will take everything from them and just leave them with the clothes on their back. Fortunately that is not the case. Most of my clients are able to use the property exemptions to keep ALL of their property. It is my job as their attorney to analyze their assets and protect them.

In Wisconsin you can choose to use the Federal Property Exemptions or the Wisconsin Property Exemptions.

Here are some of the most common exemptions:

– Some amount of cash
– Equity in your home (up to $150,000 for married couples using the WI exemptions)
– Car
– Furniture and household goods
– Clothing
– Jewelry (including wedding ring)
– Individual Retirement Account (IRA)/401(k)
– Tools of the trade (things you need for a business)
– Wildcard exemption (You can use this to exempt anything that is not covered by another exemption.)
– And others.

Each exemption has a dollar amount cap. The amount depends on whether you choose the state or federal exemptions.

If you have questions about the exemptions and your property call or email for a free consultation.

[Friedman, D. Will they take my stuff if I file bankruptcy?]

  Tags: Bankruptcy, Exemptions


Which States Bankruptcy Exemptions Can I Use?

You must use the exemptions of the state you have lived in for the last two years. If you have not lived in the same state for the last two years you must use the exemptions of the state where you were living for the better part of the 180 day period ending two years before your filing date. If you did not live in any state during the 180 day period that began two years before filing then you must use the federal exemptions. A separate rule determines whether you may claim your state’s homestead exemption.

If you want to learn more about bankruptcy exemptions contact me today to schedule a free consultation. I will answer all of your questions in plain English and give you the pros and cons of bankruptcy as related to your specific situation.

  Tags: Bankruptcy, Exemptions


Can I File Bankruptcy Again?

Most who file for bankruptcy never plan on doing it again. They leave my office planning on being debt free for the rest of their lives. As you know that is easier said then done. Due to job loss, health issues and other events some find that they are back where they started.

Fortunately bankruptcy isn’t a one time deal. If you qualify and meet certain time requirement you may file again and receive a another discharge of your debts.

The amount of time you have to wait depends on the date you first filed, what type of bankruptcy you previously filed and what type of bankruptcy you intend to file.

If you previously received a Chapter 7 discharge,  you must wait 8 years before you can receive another Chapter 7 discharge and 4 years before you can receive a Chapter 13 discharge.

If you previously received a Chapter 13 discharge, you must wait 2 years before you can receive another Chapter 13 discharge and 6 years before you can receive a Chapter 7 discharge.

There are some exceptions to the above rules. You should seek the advice of a bankruptcy attorney regarding your specific situation.

If you think that you need to file bankruptcy again contact me today to schedule a free consultation. I will answer all of your questions in plain English and give you the pros and cons of bankruptcy as related to your specific situation.

  Tags: Bankruptcy, Flowchart


Bankruptcy Household Size

Determining your household size is very important when considering bankruptcy. Your household size is used to look up your state’s median income. If you are below the median income you automatically qualify for a Chapter 7 bankruptcy and do not have to take the means test. If you are above the median income and do not pass the means test you cannot file a Chapter 7 bankruptcy and will likely have to file a Chapter 13 bankruptcy.

Most courts adopt the census test for a household, which includes all of the people, related and unrelated, who occupy a house, apartment, group of rooms, or single room that is intended for occupancy as separate living quarters.

Below are the current figures in Wiconsin. For the other states click here.

1 – $42,816
2 – $57,657
3 – $67,103
4 – $77,760

* Add $6,900 for each individual in excess of 4.

Call or email Madison Bankruptcy Attorney Zeshan Usman for a free consultation.

  Tags: Bankruptcy, Means Test


Chapter 13 Bankruptcy Timeline

A Chapter 13 Bankruptcy may be resolved and your debt discharged within 3 to 5 years. The basic timeline for Chapter 13 Bankruptcy in Wisconsin is listed below.

Before Filing:

180 days before filing: You must complete a credit counseling course within 180 days of filing for bankruptcy.

90 days before filing: You must be a resident of Wisconsin for a minimum of 90 days in order to file for bankruptcy in this state.

After Filing:

15 days after filing: Within 15 days of filing a bankruptcy petition you must file paperwork regarding your assets, income, expenses and liabilities. You must also provide a repayment schedule.

30 days after filing: You must make the first payment to the bankruptcy trustee based upon the repayment schedule.

45 days after filing: The court will hold a Meeting of Creditors approximately 4 weeks after you file for bankruptcy. You will need to testify under oath regarding all the information provided to the court in your petition.

3 to 5 years after filing: A Chapter 13 discharge will occur upon the completion of the repayment schedule, which may occur anywhere between 3 and 5 years of the filing date.

Call or email Madison Bankruptcy Attorney Zeshan Usman for a free consultation.

  Tags: Bankruptcy


Chapter 7 Bankruptcy Timeline

A Chapter 7 Bankruptcy may be resolved and your debt discharged within as little as 3 months. The basic timeline for Chapter 7 Bankruptcy in Wisconsin is listed below.

Before Filing:

180 days before filing: You must complete a credit counseling course within 180 days of filing for bankruptcy.

90 days before filing: You must be a resident of Wisconsin for a minimum of 90 days in order to file for bankruptcy in this state.

After Filing:

15 days after filing: Within 15 days of filing a bankruptcy petition you must file paperwork regarding your assets, income, expenses and liabilities.

30 days after filing: You must file a Statement of Intention with the court stating whether you plan on keeping or surrendering your secured assets.

45 days after filing: The court will hold a Meeting of Creditors approximately 4 weeks after you file for bankruptcy. You will need to testify under oath regarding all the information provided to the court in your petition.

3 months after filing: A discharge will usually happen approximately 3 months after filing, depending on the case.

Call or email Madison Bankruptcy Attorney Zeshan Usman for a free consultation.

  Tags: Bankruptcy


Bankruptcy Credit Counseling Requirements

The big 2005 change in the bankruptcy laws included counseling requirements. People filing for bankruptcy now must complete credit counseling from a government approved organization within 180 days before filing. They must also complete a debtor education course before their bankruptcy discharge will be granted. Both courses can be taken in person, on the phone or online. Each course costs around $35 and the fee can be waived if you qualify for a waiver.

The first course includes an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy and a personal budget plan. The second course includes information on developing a budget, managing money, using credit wisely and other related resources.

You do not have to satisfy the counseling requirement if you are in the military on active duty, you are incapacitated, or you have a disability that prevents you from participating.

Call or email Madison Bankruptcy Attorney Zeshan Usman for a free consultation.

  Tags: Bankruptcy, Counseling


Top Ten Reasons People File for Bankruptcy

1. Stop or Delay Foreclosure
2. Stop or Delay Repossession
3. Medical Bills
4. Harassment by Debt Collectors
5. Stop Utility Shut Off
6. Stop Garnishment
7. Stop a Law Suit
8. Job Loss
9. Small Business Failure
10. Divorce

Call or email Madison Bankruptcy Attorney Zeshan Usman for a free consultation.

  Tags: Bankruptcy, Blog


How to Pay For Bankruptcy

Paying for an attorney to assist you with your bankruptcy may seem impossible given the financial strain you are facing. Many people give up and just assume that if they can’t pay their bills they can not afford to file bankruptcy. Fortunately that is not the case.

I have met with hundreds of people who have started a consultation with me by stating that they are to broke to even file for bankruptcy. After reviewing their finances we are almost always able to come up with a strategy for them. Below are a few ways clients of our have been able to move forward with their case.

1. Fee Waiver: You may be able to waive the court filing fee and cost of financial counseling.

2. Payment Plans: If you are filing a chapter 13 bankruptcy you can include the majority of your fees in the chapter 13 payments. This will allow you to stretch the payments out over a few years.

3. Restructure Debt Payments: After meeting with your attorney they may advise you to stop paying on your credit cards and other debts. The money you save from not paying those bills can be used to fund your bankruptcy.

4. Gifts: Family and friends may be able to help.

5. Sell Something: You may be able to sell something you no longer use.

6. Overtime: Ask for more hours at work.

7. Second Job: Try to get a second job or a side job.

8. Tax Refund: Wait till it is time to file your taxes and use your tax refund.

9. Retirement Account: Pull money out of your retirement account.

Call or email Madison Bankruptcy Attorney Zeshan Usman for a free consultation.

  Tags: Bankruptcy, Blog


What types of income do I have to include in my bankruptcy?

ALL income.

Examples

  • Rental Income
  • Business Income
  • Investment Income
  • Child Support, Alimony, and Maintenance
  • Gambling Winnings
  • Pensions and Retirement Income
  • Individual Retirement Account (IRA) Withdrawals
  • Life Insurance Policy Withdrawals
  • Money received through Inheritance
  • Social Security / SSDI Benefits
  • Disability Payments
  • Unemployment Insurance Proceeds
  • Workman’s Compensation
  • Food Stamps or Welfare
  • Annuity payments
  • Regular Contributions from others in the household
  • Payment on Notes and Mortgages you own
  •   Tags: Bankruptcy, Blog