With life getting more expensive, it is no wonder that many people struggle with their finances. Nowadays, it feels like it is almost normal to experience trouble with your monthly bills. The state of the economy is not the only factor contributing to the financial problems that people these days have. It is also the type of lifestyle that everybody is striving for. You see it everyday in TV commercials, billboards. With every advertisement you see, you feel like what you have is not good enough, like you need more. Then you see your neighbors or your friends having stuff that you do not, and yet again you make all you can to be on the same level as they are even if it means you are going to be in debt. Of course, the reasons for someone to fall into a debt cycle are plenty.
Usually, it is out of pure necessity of paying your electricity bills, having an emergency expenses like your car breaking down or a big health problem. Or maybe you are in debt because you wanted to take out a student loan. Once you start carrying debt, it is not so important how you got there, but how you are going to get out. When people are in such situations, they often try different debt relief programs. Some of such programs work, and people are able to get rid of their debt. However, there are too many people who fail at paying off their debt and are left feeling pretty hopeless. If you have tried different methods of paying off your debt and yet is still burdened by it, then there is still an option that may be the answer you were looking for. That is bankruptcy. While bankruptcy does not have the best of reputation, it has proven to be a way for many people to find debt relief and start a brand new life of financial freedom.
That, of course, does not mean that bankruptcy is a magical tool that can make all your problems go away. It is definitely not for everybody but can be of great help in some situations. Before making any financial decisions, it is good to be as informed as you can be. You should not dive into something that you have no knowledge of. Bankruptcy in the city of Milwaukee could be the best option for you. But to know if this is true or not, we will first explain what bankruptcy is and how it works. It is also a good idea to contact a Milwaukee bankruptcy lawyer so that you can have comprehensive information.
What is bankruptcy?
Even though bankruptcy is something that may give you chills, you should know that, bankruptcy is not that scary anymore at all nowadays.
Bankruptcy is a legal procedure where a person or a business that is not able to pay his or its bills gets a brand new financial start. In the United States, bankruptcy is a very complex legal system that is specially designed to give individuals financial stability and help them to get rid of their debt. Bankruptcy can also be an option for different companies to wind up operation and get rid of assets in an orderly manner. Even though it is often the subject of loathing and fear, bankruptcy is an essential part of the modern economy’s functionality. The bankruptcy system not only gets rid of the burden of having debt, it is also helping to keep credit in the economy flowing. When you file for bankruptcy, that action alone stops your creditors from taking any action against you to collect debt. That means an end to the stressful harassment telephone calls and letters, threats of lawsuits, foreclosures and repossessions.
Milwaukee bankruptcy courts
The entire bankruptcy network in the United States is under the control of the US Bankruptcy Courts. All bankruptcy courts are different parts of the country’s federal court system. That means that a bankruptcy court can be found in every federal district in the country. Depending on what the district’s population is, however, there might be a number of courthouses in each city. All bankruptcy courts in the United States are under the supervision of elected bankruptcy judges. They are appointed by federal judicial committees to a 14-year term of service.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most popular type of bankruptcy. Usually, business or individuals with few assets (or no assets at all) file for Chapter 7 bankruptcy. This type of bankruptcy allows the person to dispose of his unsecured debt, which includes medical bills, credit cards and others. Persons what have nonexempt assets, like expensive collections such as a stamp or a coin collection, family heirlooms, second vehicles or home, cash, bonds or stock, they need to liquidate their property in order to repay some parts of, or all of their unsecured debt. Those who do not have any valuable assets and have only exempt property, like clothes, household tools, a vehicle of a certain value, those people repay nothing for their unsecured debt.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is often the choice for many businesses. The goal these businesses when filing for Chapter 11 bankruptcy is to reorganize and become profitable again. When a company files for Chapter 11 bankruptcy, that allows it to make profitability plans, find new ways to increase its revenue and also cut some costs. Let’s take a housekeeping business for example. When such business files for Chapter 11 bankruptcy, it may slightly increase its rates and is able to offer more services and hence become more profitable. With Chapter 11 bankruptcy, a business is able to continue to conduct its everyday operations without any interruption, while at the same time working on a court’s supervision debt repayment plan. There are some rare cases where individuals are also able to file for Chapter 11 bankruptcy.
Chapter 13 bankruptcy
If a person earns too much money and is not able to qualify for a Chapter 7 bankruptcy case, he can file for bankruptcy under Chapter 13. Chapter 13 bankruptcy allows businesses and individuals to make a workable debt repayment plan. In order to repay their creditors, these debtors have court permission to keep their property as well as all nonexempt property.
Milwaukee bankruptcy trustee
A trustee, in the most bankruptcy cases, is appointed automatically by a panel. A trustee’s job is to administer the bankruptcy case. This is done by reviewing the documentation of the debtor. A trustee in a Chapter 7 bankruptcy case will try to sell all non-exempt property of the debtor in order to pay the creditors. Also, the trustee is obligated to be vigilant for failures to disclose information and fraudulent conduct on the debtor’s part. The trustee must collect as many assets as he can to pay the creditors.
Bankruptcy fraud in Milwaukee
With bankruptcy, being a federal structure that is codified into the U.S. Bankruptcy Code by the Congress, and so, bankruptcy fraud is under the federal government domain. In the city of Milwaukee (same as in every other city in the United States), bankruptcy trickery that includes lack of success to disclose assets or debts, false oaths, and other deceptive conduct is considered federal crime. If you commit bankruptcy fraud, you may lose discharge, may also very well find yourself in a prison cell. Even though the government is always keeping an eye for such fraud, any creditor of a bankruptcy debtor may send a complaint in contrary to that debtor. With this complaint, the creditor may want to prevent the debtor from discharging for bankruptcy fraud. A debt, under the bankruptcy law, may be non-dischargeable because the credit has been obtained by fraudulent ways. Unscrupulous debtors will most certainly not find a safe haven in the face of bankruptcy.
For certain residents of Milwaukee, bankruptcy may very well be the right solution to their financial troubles. If you think that bankruptcy is exactly what you need, do not hesitate to set your debt freedom plan in motion. However, it is always good to get a Milwaukee bankruptcy attorney to guide you through the process and explain to you in detail of what bankruptcy will mean for your specific case.