The Ins and Outs of Chapter 7 Bankruptcy

Filing for Chapter 7 Bankruptcy

In need of a fresh financial start? While filing for bankruptcy may seem like the end of your financial freedom, it could be the best solution for your situation. Filing for Chapter 7 bankruptcy with the right attorney can help you get out of debt. Below are the ins and outs of Chapter 7 bankruptcy.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is the most common type of bankruptcy filed. This is because most debts are forgiven through Chapter 7 bankruptcy. You can also keep most of your assets. However, there are a few exceptions such as homesteads and other types of property, but this does depend on the property’s value.

Another benefit of filing for Chapter 7 bankruptcy is that most types of debt are forgiven through it. Debt from medical bills, credit cards, payday loans, back rent, past due utilities, auto accidents and money owed on repossessed vehicles are a few examples of the kind of debt that can be forgiven. Also, creditors will not be able to contact you once you present your petition to a judge and it is accepted.

There are a number of reasons people file for Chapter 7 bankruptcy such as the loss of a family member or job, divorce, serious illnesses or even rising interest rates. If you are considering filing for Chapter 7 bankruptcy, you need to contact an attorney. Each situation varies, so you need to know what your best option for financial recovery is.

How Do I File for Chapter 7 Bankruptcy?

Before you file for Chapter 7 bankruptcy, you need to set up a consultation with an attorney. As stated above, each situation is different, so having an experienced attorney who knows the ins and outs of Wisconsin law and the types of bankruptcy is critical for determining the best path for your financial recovery.

There is a means test for determining whether you can file for Chapter 7 bankruptcy. Typically, if your monthly income is less than Wisconsin’s mean monthly income of houses of similar size, you will qualify for Chapter 7 bankruptcy.

The United States Bankruptcy Court Western District of Wisconsin outlines what the individual filing requirements are on its website:

  • Filing fee OR Form 103 A (Application to Pay Filing Fee in Installments) OR Form 103 B (Application to Have Chapter 7 Filing Fee Waived)
  • Form 101 (Voluntary Petition for Individuals filing for Bankruptcy)
  • Mailing Matrix (List of all creditors)
  • Form 121 (Statement of Social Security Number)
  • Certificate of credit counseling and debt repayment plan OR Section 109(h)(3) Certification of Exigent Circumstances; OR Section 109(h)(4) Request for Waiver
  • Form 119 (Bankruptcy Petition Preparer’s Notice, Declaration, and Signature): If applicable
  • Form 2800 (Disclosure of Compensation of Bankruptcy Petition Preparer): If applicable
  • Form 101A (Initial Statement About an Eviction Judgment Against You) – If applicable
  • Form 101B (Statement About Payment of an Eviction Judgment Against You): If applicable

This is all required to be submitted with your petition for bankruptcy. There are more forms that can be submitted with the initial petition or can be submitted 14 days later along with other forms before the meeting with your creditors. Click here to learn more about the requirements.

With all of these forms to submit, it can be difficult to keep track of what you need to file for Chapter 7 bankruptcy and how the process even works. This is why you need an experienced attorney on your side.

How Will Filing for Chapter 7 Bankruptcy Affect My Financial Future?

While filing for Chapter 7 bankruptcy can help protect your financial future, there are a few drawbacks to it. Your credit will be affected by your filing for bankruptcy 10 years after your initial filing date. There are some debts, such as child support and student loans, that are not forgiven and will still need to be paid depending on your situation as well.

However, even with these downfalls, you can recover after filing for Chapter 7 bankruptcy. The key to doing so is to start building credit and making wise financial decisions. This is where having a qualified attorney in your corner can help as they can advise you further on your financial recovery.

Contact Bankruptcy Attorney Steven Eichstaedt Today

Throughout his years of practice, Wisconsin bankruptcy attorney Steven Eichstaedt has helped thousands of clients get the bankruptcy protection they deserve. From Chapter 7 and Chapter 13 to all the other financial solutions available to help a client, Steve will take the time needed to help you decide what is best for your situation. Connect with Steve today to set up a consultation.