Today, there are many households in America that experience trouble with their finances, it does not really matter what their job occupation or income is. It looks like in the current state of the economy, even if you have a stable job and are working hard, that does not necessarily mean that you would be able to sustain a steady financial state. For many people out there, it is extremely hard to cope with the lifestyle of modern society. In many cases, when someone is having trouble paying his monthly bills or emergency expenses, the most common way to deal with such situation is by taking out some kind of loan and getting in debt.
Once you start to collect debt, usually things do not get much better afterwards. If you are having trouble with sleeping, often kept awake at night worrying about your budget and trying to think of a way to meet your monthly bill payments and debt repayments, you need to know that you are not the only one in such a difficult situation. The reality is that many people nowadays are going through the same trouble every month. Usually, when a person realizes that his debt is becoming a too big of a problem, most people start to look for ways to deal with that debt.
Debt Relief Options
There are various debt relief program options for people to choose from. While for some people, such programs end with the achieving of the desired goal. For others, the situation does not change much or at all. And for the people who are still stuck with their debt, it’s getting harder and harder as the time goes to believe that they too can reach debt freedom. If you have tried out all kinds of different methods and you are still far from debt relief, you may want to consider bankruptcy as your solution.
While bankruptcy’s reputation is not the best, bankruptcy has been a way for many people to get rid of most or even all their debt and start off a brand new life, free of the constant stress they have been under before. Bankruptcy, however, is not for everybody as each person’s specific situation is going to be different. That means that it may work for some and it may not work for others. It is probably for the best to seek help from a bankruptcy specialist before making any major decisions. The more bankruptcy knowledge you have, the better your choices are going to be. In the article below, we will try to explain the most important things that you should know about bankruptcy. We will provide you with specific information regarding the eastern district of Wisconsin bankruptcy court.
Bankruptcy quick explanation
What bankruptcy does is enabling individuals and businesses to repay a certain amount of the debt they have or even to repay all of it. The whole process goes under the protection of the federal bankruptcy court. There are two most common types of bankruptcy – a reorganization bankruptcy and a liquidation bankruptcy.
Chapter 13 bankruptcy
In bankruptcy, there are a number of different reorganization bankruptcy types. The most common is called Chapter 13 bankruptcy. With this bankruptcy chapter, you may get to keep your property, but you will be required to make monthly payments for 3 – 5 years in order to pay back a certain portion of your debt or in some cases, all of it.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is what liquidation bankruptcy is actually called. It is a liquidation bankruptcy because of the fact the with this bankruptcy type, the trustee that is appointed by the court may take and sell (liquidate) a certain portion of your property in order to repay as much of your debt as possible. If, however, some of your property is exempt (protected) under the federal law, you will be able to keep that property.
Both Chapter 7 bankruptcy and Chapter 13 bankruptcy are a bit more complicated than they may seem at first. Both types of bankruptcy have various rules and required documentation in order to be successful.
Eastern district of Wisconsin bankruptcy court
If you are a resident of the state of Wisconsin, the eastern district of Wisconsin bankruptcy court allows you to file for bankruptcy on your own without the assistance of a bankruptcy lawyer. You can, of course, use the services of a bankruptcy specialist. Although in the United States, most courts across the country follow similar bankruptcy law regulations, eastern district of Wisconsin bankruptcy court offers guidance regarding specific local procedures.
Local rules for the Eastern district of Wisconsin bankruptcy court
As mentioned above, each court in the United States has its own law regulations regarding bankruptcy. Every court has its own procedures and requirements when filing for bankruptcy. That includes the format of the creditor’s mailing matrix. That matrix is a list of all creditors with their addresses and names. You will also need to go through process details and procedures such as filing date, myriad fees and others. If these documents are not written in the best possible way, these court local rules may not really make that much sense to you. Even if that is the case, you should not sweat over it as most of these rules may not affect you at all. Having said that, you should still follow certain rules when filing for your bankruptcy. The eastern district of Wisconsin bankruptcy court publishes instructions for people who are filing their bankruptcies without the help of a bankruptcy lawyer. Before you read the court rules, you may want to have a look at these eastern district of Wisconsin bankruptcy court instructions.
Bankruptcy is a process that requires lots of documentation, much like a long tax return. Most documentation in bankruptcy consists of federal forms that are normally used not just in the eastern district of Wisconsin bankruptcy court but also in bankruptcy courts all over the country.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also known as wage earner bankruptcy. This is due to the fact that with Chapter 13 bankruptcy, you need to have a stable source of monthly income that allows you to repay part of your debt.
When a person wants to file for Chapter 13 bankruptcy, that person must propose a specific repayment plan, a plan that shows in detail the ways this person intends to pay back his debt over a period of between 3 and 5 years. The factors that are being taken into account are your income, the amount of money you owe to all your creditors plus the amount of money that unsecured debt collectors would have taken in case you had qualified for a Chapter 7 bankruptcy case. If you are not sure whether you will be able to handle a Chapter 13 bankruptcy case, it may be a good idea for you to use a Chapter 13 bankruptcy payment calculator to calculate your minimum monthly payment and then make a decision based on that.
If you are carrying any secured debts, with Chapter 13 bankruptcy, you are allowed to make up for payments which you have missed in the past and avoid repossession or foreclosure. If you want to have more in-depth knowledge of the ways that Chapter 13 bankruptcy may be helpful in terms of your secured debts, you should look for information regarding mortgage or home Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy case may be filed by a consumer or a business. Such bankruptcy case usually lasts for no more than six months.
Chapter 7 bankruptcy eligibility
Although Chapter 7 bankruptcy is the type of bankruptcy that is most commonly used by consumers, not everybody is eligible for it. For example, if you have an income that is high enough to fund a Chapter 13 bankruptcy repayment plan, you will not be able to qualify for Chapter 7 bankruptcy.
While there are many situations where Chapter 7 bankruptcy is the perfect tool for the job, that is not always the case
With filing for bankruptcy, most consumers are able to get rid of most of their debts, including debts such as credit card debt, unsecured loans and medical bills. However, there are still many debt types which Chapter 7 bankruptcy will not really work as such debts simply cannot be eliminated with filing for bankruptcy. These debt types include child support, tax debts and spousal obligations.