The Wisconsin economy may be improving, but many Mikwaukee debtors are still struggling through no fault of their own. Job loss or medical emergencies can cause major financial problems and stress; some debtors may risk losing their homes or cars. Personal bankruptcy can help debtors get out of debt and rebuild their credit.
Types of Personal Bankruptcy
There are two types of personal bankruptcy. Chapter 7 bankruptcy allows you to liquidate assets to repay debts, while Chapter 13 allows you to enter a structured repayment plan.
Chapter 7 bankruptcy is meant for low-income debtors. This type of bankruptcy can be risky; if you don't qualify for exemptions, you could lose your home or vehicle. However, it is far quicker than Chapter 13, which requires you to spend three to five years repaying your debts.
Not all debts qualify for Chapter 7. Mortgages, student loans and tax debts usually do not.
Your Milwaukee bankruptcy attorney can help you decide which type of bankruptcy is right for you.
Why You Need an Attorney
In addition to helping you decide which type of bankruptcy to file, a bankruptcy attorney can help you to fill out paperwork and meet all filing requirements, This is important because your bankruptcy could be dismissed if you make a mistake, causing you serious financiak hardship. Thus, even if you want to file independently, you should consider hiring an attorney to check over your forms and ensure you have met all requirements.
Your attorney can also represent you at all required hearings. Many people rely on attorneys to represent them at their 341 meeting with creditors.
Finally, attorneys may be able to get more of your debt discharged than you can get on your own. For example, normally student loan debt is not dischargeable. However, your attorney can file a motion to have the court consider this debt and in certain circumstances can get it discharged.
If you are considering filing for bankruptcy, contact a qualified bankruptcy attorney today.