Do I Qualify for Bankruptcy? Stop Agonizing by Learning if You are Eligible for a Wisconsin Bankruptcy
Navigating the complex terrain of bankruptcy eligibility in Wisconsin can be daunting. Whether you’re an individual, a business entity, or a partnership, understanding the criteria for Chapter 7 and Chapter 13 bankruptcy is crucial. Here, we break down the key eligibility factors to help you determine if you qualify for bankruptcy relief.
Do I Qualify for Bankruptcy: Chapter 7 Eligibility
Prior Dismissals and Credit Counseling
To qualify for bankruptcy under Chapter 7, individuals, partnerships, and corporations must meet specific requirements. Notably, an individual cannot file under Chapter 7 if, within the previous 180 days, a prior bankruptcy petition was dismissed due to willful failure to appear in court or non-compliance with court orders. Voluntarily dismissing a previous case after creditors sought relief for property recovery also disqualifies an individual.
Additionally, all individuals must receive credit counseling from an approved agency within 180 days before filing. Exceptions exist in emergency situations or when insufficient approved agencies are available. Learn more
Means Test
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 introduced a “means test” to determine whether you qualify for bankruptcy using Chapter 7 for relief. If an individual’s income exceeds certain thresholds, they may not qualify for Chapter 7. You can check if you meet this test here.
Debt Discharge
Chapter 7 aims to provide a “fresh start” by discharging specific debts, offering relief to honest individual debtors. While most individual debts are discharged in a Chapter 7 case, not all debts qualify, and liens on property are not extinguished. Learn more
Do I Qualify for Bankruptcy: Chapter 13 Eligibility
Individual Eligibility
Another option you may think about whether you qualify for bankruptcy is a Chapter 13 bankruptcy is available to any individual, including the self-employed or those operating unincorporated businesses, provided their unsecured debts are less than $360,475, and secured debts are less than $1,081,400. However, corporations or partnerships cannot file under Chapter 13.
Prior Dismissals and Credit Counseling
Similar to Chapter 7, individuals are ineligible for Chapter 13 if a prior bankruptcy petition was dismissed within the preceding 180 days due to non-appearance in court or non-compliance with court orders. Credit counseling from an approved agency is mandatory, with exceptions for emergencies or when approved agencies are insufficient.
Debt Management Plan
If a debt management plan is developed during the required credit counseling, it must be filed with the court. Learn more about Chapter 13
Information About Filing Fees
The court imposes various fees for bankruptcy filings, including a $245 case filing fee, a $75 miscellaneous administrative fee, and a $15 trustee surcharge. Typically, these fees must be paid upon filing, but individuals can request permission to pay in up to four installments, with the final installment due no later than 120 days after filing. Failure to pay these fees may lead to case dismissal.
In cases where an individual’s income is less than 150% of the poverty level, the court may waive the fee requirement. Learn more about filing fees
Contact Dahlberg Law Group for Expert Guidance to Answer the Question: Do I Qualify for Bankruptcy?
Navigating bankruptcy eligibility can be complex, and making the wrong move can have significant consequences. Whether you’re considering Chapter 7 or Chapter 13 bankruptcy, it’s essential to consult with experienced attorneys like Attorney Steve Eichsteadt at Dahlberg Law Group. We’re here to guide you through the process, ensuring you make informed decisions to secure your financial future. Don’t face bankruptcy alone; contact us for expert assistance.
Frequently Asked Questions About Whether You Qualify for Bankruptcy
Q1: What is the purpose of credit counseling in bankruptcy?
A1: Credit counseling is intended to provide individuals with financial education and help them explore alternatives to bankruptcy. It’s a mandatory requirement to ensure debtors fully understand their financial situation.
Q2: Can I file for bankruptcy without an attorney?
A2: While it’s legally possible to file for bankruptcy without an attorney (pro se), it’s highly discouraged due to the complex nature of bankruptcy law. An attorney can help you navigate the process, protect your assets, and ensure compliance with all legal requirements.
Q3: How do I determine if I qualify for Chapter 7 or Chapter 13 bankruptcy?
A3: Eligibility for Chapter 7 or Chapter 13 depends on various factors, including your income, type of debts, and prior bankruptcy history. It’s crucial to consult with an attorney who can assess your situation, recommend the most suitable option, and whether you qualify for bankruptcy.
Q4: What debts can be discharged in bankruptcy?
A4: While most unsecured debts can be discharged in bankruptcy, certain debts like child support, alimony, student loans, and some taxes are generally non-dischargeable. Consulting with an attorney can help you understand which of your debts can be discharged.
Q5: Can I keep my property if I file for bankruptcy?
A5: Whether you can retain your property in bankruptcy depends on various factors, including the type of bankruptcy you file and the value of your assets. An attorney can help you explore options to protect your property while seeking debt relief.
Contact Attorney Steve Eichsteadt at Dahlberg Law Group
When it comes to navigating the intricate landscape of bankruptcy in Wisconsin, having an experienced attorney on your side can make all the difference. Attorney Steve Eichsteadt at Dahlberg Law Group is here to provide you with the knowledge and support you need during this challenging time. With a deep understanding of Wisconsin bankruptcy law and a commitment to your financial well-being, Attorney Eichsteadt can guide you through the process, ensuring that you make the best decisions for your unique situation.
Don’t hesitate to reach out to Attorney Steve Eichsteadt today at (262) 677-8999. Your path to financial recovery begins with a conversation with a trusted legal expert who can help you determine the best course of action for your bankruptcy case.
