The federal government has created bankruptcy as a legal means for individuals who are unable to pay their creditors to legally discharge most of their unsecured debt and start over. If you are like one million other Americans last year facing a severe financial crisis and you do not have any other options, you may want to consider filing bankruptcy.

If you decide to file bankruptcy you may be able to:

  • Stop a home foreclosure
  • Recover from a devastating financial crisis such as a divorce, separation, death or unexpected job loss
  • Stop Harassing creditor calls
  • End repossession of personal property
  • Eliminate wage garnishments
  • Erase credit card debt, including penalties and interest
  • Stop a repossession of your property

Bankruptcy will allow you to discharge most of your unsecured debt under Chapter 7 Bankruptcy and repay all or a portion of your debt under Chapter 13 Bankruptcy. If you would like more information about filing bankruptcy in Wisconsin, it is important to contact a Wisconsin Bankruptcy Lawyer who can answer all of your bankruptcy questions and help you decide if bankruptcy is right for you.

What Debts are not discharged in a Wisconsin Bankruptcy?

There are certain types of debts that will not be discharged by filing either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. All debts that will not be discharged are determined under federal bankruptcy law. The non-dischargeable debt for the state of Wisconsin will be the same as other states. If you fail to continue debt payments for non-dischargeable debt, creditors may be able to continue their collection efforts.

In the state of Wisconsin, the following debts are considered non-dischargeable:

  • Federal, state and local taxes. May be subject to specific time rules.
  • Spousal Support/Alimony
  • Child Support Payments
  • Most Student Loans
  • Mortgage Liens
  • Certain types of purchases for luxury items within 90 days of filing
  • Secure Debt
  • Penalties and fines by government agencies
  • Fraud committed in a fiduciary role including larceny and embezzlement
  • Punitive damages assessed for “willful and malicious acts”
  • Debts not outlined on the schedule and forms filed with the Bankruptcy Court
  • Drunk Driving fines
  • Certain cash advances or purchases for luxury items within a certain time frame.

Bankruptcy Exemptions in Wisconsin

Federal bankruptcy law will outline certain assets and property that are exempt or protected from the bankruptcy process. The federal exemptions are created to allow you to keep enough assets to start over after filing bankruptcy. A Wisconsin Bankruptcy Attorney can provide you information about what assets may be exempt from Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.

Although, federal exemptions were created at the federal level, certain states have created their own state exemption list. Some states will give you a choice between the state exemption list and the federal exemption list. Other states will only allow you to use the state exemption list.

In the state of Wisconsin you may choose either the federal bankruptcy exemption list or the State of Wisconsin Bankruptcy Exemption List.

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