Attorney at Debt Advisors Law Offices
Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure
Filing bankruptcy is never an easy decision, but for many individuals and families in Milwaukee it becomes the most practical way to move forward. Financial struggles often come from job loss, medical expenses, or unexpected life changes, and when debt becomes unmanageable, bankruptcy offers a legal path to relief.
This guide explains the process of filing bankruptcy in Wisconsin, what it costs, and how life looks after discharge. The goal is to help you understand the steps so you can make an informed decision.
Bankruptcy is a federal legal process, but it’s applied locally through the U.S. Bankruptcy Court for the Eastern and Western Districts of Wisconsin. Milwaukee residents usually file through the Eastern District. The process is not simply filling out paperwork; it involves eligibility checks, counseling, and oversight by the court.
The first step is completing the Wisconsin bankruptcy means test, which compares your income to the state median. If you qualify, you may file under Chapter 7, which wipes out unsecured debts. If not, Chapter 13 may be an option, where you set up a repayment plan over three to five years.
Another requirement is credit counseling with a government-approved provider, which ensures you understand alternatives before filing. After submitting your petition, a bankruptcy trustee reviews your financial documents, and you attend a meeting of creditors, often called a 341 meeting.
From there, the court decides on discharge or repayment. At this stage, many people turn to an experienced Milwaukee bankruptcy lawyer for guidance, since each step has strict requirements and missing details can delay or jeopardize a case.
One of the most common concerns is how much it costs to file bankruptcy. In Wisconsin, the court filing fee is currently $338 for Chapter 7 and $313 for Chapter 13. These fees are standard nationwide, set by the U.S. Courts (uscourts.gov).
Attorney fees vary depending on the complexity of your case. Chapter 13 cases usually cost more than Chapter 7 because they require longer supervision. Many firms, including those in Milwaukee, offer payment plans to make the process manageable.
Be cautious of services that advertise extremely low prices. In many cases, these do not cover all required steps, and filings can be dismissed if fees are unpaid. Choosing transparent, experienced legal help prevents costly mistakes.
Filing bankruptcy has both immediate and long-term consequences. On the positive side, the automatic stay takes effect the moment you file. This halts wage garnishments, creditor calls, repossessions, and most lawsuits. For many, this provides instant relief.
However, bankruptcy also affects your credit score. A Chapter 7 filing remains on your credit report for 10 years, while Chapter 13 remains for seven. This does not mean you cannot recover. Many people qualify for secured credit cards, auto loans, or even mortgages a few years after discharge.
Assets are another concern. Wisconsin exemptions protect important property such as your home, vehicle, and retirement accounts. For example:
Under Wisconsin law, homeowners can protect up to $75,000 of equity in their primary residence (Wis. Stat. § 815.20).
These protections mean most filers keep their essential assets while getting debt relief.
Bankruptcy is surrounded by myths that can make people hesitate. One of the most persistent is that bankruptcy wipes out every debt. In reality, some obligations remain, including child support, alimony, certain taxes, and most student loans.
Another misconception is that only people living in poverty file bankruptcy. Many middle-class families with jobs and assets qualify because debt becomes unmanageable despite steady income.
A final myth is that bankruptcy permanently ruins financial futures. While it does lower credit in the short term, many filers start rebuilding within months. With careful budgeting and financial education, it’s possible to recover and rebuild.
To understand your options, here is a clear comparison:
|
Feature |
Chapter 7 Bankruptcy |
Chapter 13 Bankruptcy |
| Eligibility | Must pass means test | Requires steady income |
| Duration | 3–6 months | 3–5 years repayment |
| Asset Protection | Non-exempt property may be sold | Assets kept, debts repaid |
| Debt Types | Unsecured debts discharged | Secured debts reorganized |
| Credit Impact | On record for 10 years | On record for 7 years |
This table shows that the right choice depends on your income, assets, and goals.
After discharge, the focus shifts to rebuilding. This includes monitoring your credit report, using secured credit cards responsibly, and creating a household budget. Within a year, many people see improvements in credit scores.
It’s also important to explore alternatives before filing. These include debt management plans, repayment arrangements, or negotiating directly with creditors. Bankruptcy is a tool, but it is not the only solution. Understanding all options ensures you make the decision best suited to your situation.
Debt Advisors Law Offices is a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.
Chapter 7 typically lasts 3–6 months, while Chapter 13 runs 3–5 years depending on the repayment plan approved by the court.
Most filers keep their homes and vehicles because Wisconsin exemptions protect primary residence equity and a portion of vehicle value.
Court filing fees are $338 for Chapter 7 and $313 for Chapter 13, with attorney fees depending on case complexity. Payment plans are often available.
Yes. If you pass the means test, you may qualify for Chapter 7. Chapter 13 requires regular income to support a repayment plan.
Child support, alimony, most student loans, some taxes, and debts tied to fraud or intentional wrongdoing generally cannot be erased.
Credit recovery can begin within months using secured credit cards and consistent on-time payments, though the record remains for years.
Filing bankruptcy in Milwaukee is a serious step, but it offers a structured path to relief for people overwhelmed by debt. The process requires completing the means test, attending counseling, and understanding what property is protected under Wisconsin law. While there are real consequences for credit and finances, bankruptcy also delivers powerful protections and the chance for a fresh start.
If you are considering bankruptcy, take time to understand your options and the Wisconsin process. The attorneys at Debt Advisors Law Offices have guided clients through Chapter 7 and Chapter 13 for years, always focusing on clarity and transparency. Learning more about your situation is the first step toward rebuilding your financial future.
Debt Advisors Law Offices offers free initial consultations to help you review your options. Scheduling a consultation can give you clarity and confidence in deciding your next step.
Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.
