We are Madison area bankruptcy lawyers who help people like you every day. Data confirms that people file for bankruptcy relief due to real life problems; they file due to financial hardships like job-loss, divorce, and outrageous medical expenses. We offer a safe setting, payment plans & excellent service so you can get out of debt efficiently & effectively.
Debt Advisors Madison is accessible from I-90 exit 135 to High Crossing Blvd., and onto Crossroads Drive.
Serving the Broader Madison Community Debt Advisors’ Madison office extends its services to various communities including Monona, Shorewood Hills, Middleton, Five Points, Verona, Fitchburg, McFarland, Burke, Westport, Sun Prairie, Cottage Grove, Portage, Waunakee, Token Creek, Deansville, Marshall, Deerfield, Door Creek and Bakers Corners. Specialized services tailored to these communities are also available.
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Debt Advisors Madison Office is located in Dane County, Wisconsin. We also serve the surrounding areas of Rock County, Lafayette County, Iowa County, Sauk County, and Columbia County.
Residents who live or work near our state capitol in Madison will have questions about bankruptcy much like residents across the state of Wisconsin. Questions like, “what are the different types of bankruptcy and how do they differ?” “Can one spouse of a married couple file for bankruptcy?” “How long will it take to build a better credit score after filing bankruptcy?” “How can bankruptcy save my home?” How can bankruptcy stop vehicle repossession?” “How long does bankruptcy take?” “How much does bankruptcy cost?”
On this website, we can provide some basic guidelines, but the best advice will come from your free consultation with a Madison Bankruptcy attorney at Debt Advisors Law Offices Madison. Through our consultation and formal meetings, we’ll get to all of your questions and share some benefits of filing bankruptcy in Wisconsin. We’ll explain some pros and cons of filing bankruptcy so that you can make the best financial decision for your family. The same services are available at any of our six Wisconsin locations.
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Directions for your Madison Bankruptcy Lawyer: Madison and its surrounding areas face unique economic challenges, from rising living costs to fluctuating job markets. With an economy reliant on the tech industry, state employment and higher education, changes in these employment sectors can leave Madison residents financially vulnerable.
Debt Advisors understands these local nuances and is committed to guiding residents through financial difficulties. With a deep-rooted understanding of the local financial landscape, Debt Advisors is a trusted partner for Madison residents.
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BEGIN YOUR FINANCIAL RECOVERY TODAYKey Differences, Processes, and Benefits
Bankruptcy is a term that often evokes a sense of dread and uncertainty. Yet, when faced with insurmountable debts and relentless creditors, it can serve as a viable solution and a path to financial freedom. Understanding the intricacies of bankruptcy, particularly the differences between Chapter 7 and Chapter 13, is important for anyone contemplating this significant financial decision. Each chapter offers a distinct approach to debt relief, and the choice between the two can have long-lasting implications on one’s financial health and lifestyle.
Debt Advisors, specializes in guiding individuals through the process of bankruptcy. With years of experience and a team of dedicated Milwaukee bankruptcy lawyers, Debt Advisors offers a comprehensive suite of services designed to help clients make informed decisions. Whether it’s liquidating assets to discharge debts in a Chapter 7 bankruptcy or restructuring debts in a Chapter 13 repayment plan, the firm provides expert advice tailored to each client’s unique financial situation.
While Chapter 7 offers a relatively quick resolution, it may require the liquidation of non-exempt assets to pay off creditors. On the other hand, Chapter 13 allows individuals to keep their valuable assets but demands a long-term commitment to a repayment plan. Both options come with their own sets of eligibility criteria, benefits, and drawbacks, making it crucial to consult an expert for personalized guidance.
In the following sections, a detailed exploration of Chapter 7 and Chapter 13 bankruptcy will be provided, covering definitions, eligibility criteria, processes, benefits, and drawbacks. An FAQ section will address common concerns and questions, aiming to offer a comprehensive understanding of these complex financial tools. The objective is to equip Milwaukee residents with the knowledge they need to navigate their financial challenges effectively and to highlight Debt Advisors’ commitment to providing reliable, compassionate bankruptcy services.
Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” provides individuals an
opportunity to eliminate most of their unsecured debts. These debts typically include credit
card balances, medical bills, and personal loans. Unlike other forms of bankruptcy, Chapter
7 allows for a relatively quick discharge of debts, offering a financial fresh start.
To qualify for Chapter 7, individuals must pass a means test. Conducted by a Milwaukee
bankruptcy lawyer from Debt Advisors, the means test evaluates an individual’s financial
situation by comparing income to the median income in Wisconsin. Expenses such as rent,
utilities, and healthcare are also considered. Failing the means test may disqualify an
individual from Chapter 7, but other bankruptcy options like Chapter 13 could still be
available.
Initial Consultation: The first step involves scheduling a meeting
with
a Milwaukee
bankruptcy lawyer at Debt Advisors. During this consultation, the attorney will
assess
the financial situation, discuss options, and determine if Chapter 7 is the most
suitable path.
Filing the Petition: After the initial consultation, necessary
documents are compiled
and submitted to the court to initiate the bankruptcy process. These documents
include
lists of assets, debts, income, and expenses.
Bankruptcy Trustee: Upon filing, a bankruptcy trustee is appointed
to
oversee the case.
The trustee’s role includes reviewing the documents, liquidating non-exempt assets,
and
distributing the proceeds to creditors.
341 Meeting of Creditors: Named after Section 341 of the Bankruptcy
Code, this meeting
allows creditors to question the debtor about their financial affairs and property.
While attendance is mandatory, creditors rarely appear, and the meeting is usually
brief.
Discharge of Debts: Approximately 60 to 90 days after the 341
meeting,
most unsecured
debts are discharged, meaning they are legally eliminated and no longer require
repayment.
Swift Relief from Unsecured Debts: One of the most
significant
advantages of
Chapter 7 is the quick elimination of unsecured debts, often within a few
months.
No Mandatory Repayment Plan: Unlike Chapter 13, Chapter 7
does
not require the
debtor to enter into a repayment plan. Once the debts are discharged, the
individual is no longer responsible for them.
Retention of Exempt Assets: Wisconsin law allows individuals
to
keep certain
assets, such as a primary residence or a modest car, even after filing for
Chapter 7.
Risk of Losing Non-Exempt Assets: Any asset not covered by
Wisconsin’s exemption
laws is at risk of being sold by the bankruptcy trustee to repay creditors.
Negative Impact on Credit Score: Filing for Chapter 7 will
significantly lower a
credit score and will remain on a credit report for up to 10 years. However,
many individuals find that they can start rebuilding their credit soon after
the
discharge.
Chapter 13 bankruptcy, often termed “reorganization bankruptcy,” serves as a legal framework
for individuals to restructure their debts while retaining valuable assets like a home or
car. Unlike Chapter 7, which liquidates assets to pay off debts, Chapter 13 allows
individuals to create a repayment plan to pay back a portion of their debts over a period of
3 to 5 years.
Qualifying for Chapter 13 involves meeting specific criteria. A steady source of income is
crucial, as the debtor must prove the ability to meet the repayment obligations under the
proposed plan. Additionally, there are debt limits for Chapter 13; as of 2022, unsecured
debts must be less than $419,275, and secured debts must be under $1,257,850. A Milwaukee
bankruptcy lawyer from Debt Advisors can help assess eligibility based on these and other
factors.
Initial Consultation: The journey begins with a comprehensive
consultation with a Milwaukee bankruptcy lawyer at Debt Advisors. During this
meeting,
the attorney will evaluate the financial situation, discuss the pros and cons of
Chapter
13, and help decide if it’s the right choice.
Repayment Plan: After the initial consultation, a 3-5 year repayment
plan is developed. This plan outlines how much will be paid to each creditor and in
what
time frame. The amount is usually based on disposable income, which is the income
remaining after essential expenses.
Filing the Petition and Plan: Once the repayment plan is ready, the
next step involves filing a petition along with the plan and other required
documents
with the bankruptcy court. This action officially initiates the Chapter 13 process.
Confirmation Hearing: After filing, a confirmation hearing is
scheduled. During this hearing, a judge reviews the repayment plan to ensure it
meets
legal requirements and is fair to creditors. If approved, the plan goes into effect.
Commencement of Payments: Following plan approval, payments must
begin
within 30 days, even if the court has not yet approved the plan. Payments are
usually
made to the bankruptcy trustee, who then distributes the funds to creditors.
Discharge: Upon successful completion of the repayment plan, the
remaining unsecured debts are discharged, effectively eliminating the obligation to
pay
them.
Opportunity to Catch Up on Mortgage or Car Payments:
Chapter 13 allows individuals to make up for missed mortgage or car payments
through the repayment plan, thus avoiding foreclosure or repossession.
Safeguarding of Non-Exempt Assets: One of the most appealing
aspects of Chapter 13 is the ability to keep valuable assets that might be
lost
in a Chapter 7 bankruptcy.
Financial Discipline: The structured nature of the repayment
plan helps instill financial discipline, as it requires regular monthly
payments
over an extended period.
Extended Commitment Period: One of the most significant
challenges of Chapter 13 is the length of the commitment. The repayment plan
lasts for 3 to 5 years, requiring a long-term financial obligation.
Steady Income Requirement: Chapter 13 demands a consistent
income to meet the repayment obligations. Loss of income during the
repayment
period could result in the failure of the plan, leading to case dismissal or
conversion to Chapter 7.
A phone consultation is free. Our team will evaluate your case and help determine if bankruptcy is the best way forward for your financial situation.
Debt Advisors is the winner of multiple awards, including from Best of Milwaukee and Expertise.com. Debt Advisors also holds an A+ rating from the Better Business Bureau.
Debt Advisors in Madison remains steadfast in its commitment to serving local residents. With a team of local experts, Debt Advisors offers unique advantages for those seeking financial guidance.
Don’t hesitate. Schedule a consultation at Debt Advisors’ Madison office today, either in-person or virtually, and take the first step toward financial freedom.
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