When debt keeps growing, it can be hard to know what to do next. You may be behind on bills, getting calls from creditors, or worried about your home or other property.
Bankruptcy can help you deal with debt you cannot pay. Chapter 7 can discharge some debts. Chapter 13 gives you time to pay your debts through a payment plan. Filing bankruptcy also usually stops many collection efforts for a while.
But bankruptcy is a legal process, and you must follow several steps before and after you file. This guide walks you through the Wisconsin bankruptcy process, from the first consultation to the end of your Chapter 7 or Chapter 13 case.
The process starts with a review of your finances, then moves through counseling, filing, and trustee review.
The first step is to talk about your finances and debts.
Discuss:
Debt Advisors Law Offices has 7 Wisconsin locations where you can meet with a bankruptcy attorney.
Before you file, you will need records about your money and property.
These may include:
Your attorney uses these records to prepare your bankruptcy papers.
You must take a credit counseling course from an approved provider before you file bankruptcy. The course reviews your finances and other ways to manage your debt. You get a certificate after you finish the course.
Chapter 7 and Chapter 13 work differently.
Chapter 7 can eliminate many unsecured debts, such as credit cards, medical bills, and personal loans. A trustee reviews your property, and exemptions may let you keep some of it. Most Chapter 7 cases take a few months.
Chapter 13 gives you more time to pay your debts. You make payments under a court-approved plan, usually for three to five years. It may help you catch up on missed mortgage payments, deal with certain tax debts, and keep your property.
After you file, the automatic stay usually stops many collection efforts.
This may stop:
Exceptions exist, so the automatic stay does not stop every type of legal action. Your case then moves forward. You may need to send more documents and attend a meeting with the bankruptcy trustee.
How long your case takes depends on the type of bankruptcy you file.
| Bankruptcy type | Typical time |
| Chapter 7 | A few months |
| Chapter 13 | 3–5 years |
Chapter 13 takes longer because you make payments over several years. A Chapter 7 case can also take longer if there are problems with your paperwork or property.
Hiring an attorney does not mean you are done. You will still need to provide information and complete the required steps.
Your attorney can help you:
You also need to provide correct information and complete each required step on time.
Bankruptcy follows federal law. Wisconsin residents may also be able to use Wisconsin or federal rules to protect certain property.
These rules are called exemptions. They can help you keep some of your property when you file bankruptcy. Which exemptions you can use depends on your property and other details of your case.
A Chapter 7 case often takes a few months. Chapter 13 usually lasts three to five years because you make payments under a repayment plan.
Filing bankruptcy usually puts an automatic stay in place. This can temporarily stop many foreclosure actions, although there are exceptions.
Most people attend a meeting with the bankruptcy trustee. It is not usually a traditional court hearing. You may not need to appear before a judge for other parts of the case.
Often, yes. It depends on your equity, loans, bankruptcy exemptions, and whether you file Chapter 7 or Chapter 13.
Bankruptcy can eliminate many unsecured debts, such as credit cards and medical bills. Some debts, including certain taxes and support obligations, usually cannot be discharged.
Bankruptcy can feel complicated, but you do not have to figure out the process on your own. If you are considering Chapter 7 or Chapter 13, our attorneys at Debt Advisors Law Offices can answer your questions and explain what the process could look like for you.
Schedule a free consultation to speak with a bankruptcy attorney.