 |  | 
| |
Madison • Janesville • Beloit • Monroe • Baraboo • Portage • Beaver Dam • Reedsburg • Richland Center • Fort Atkinson • WatertownFrequently Asked Questions
The Zaleski Law Firm represents clients in Dane County, Rock County, Columbia County, Green County, Sauk County, Lafayette County, Adams County, Grant County and the surrounding areas. In practice since 1993, attorney Steven Zaleski can address frequently asked questions and misconceptions about bankruptcy. Please contact our Madison or Janesville offices to arrange a free consultation for a full explanation of your options. What is Chapter 7 bankruptcy?
In a Chapter 7 Bankruptcy, a person’s debts, those that are dischargeable that is, are completely “discharged” or eliminated. Individuals are generally able to keep their houses, cars and all other property as part of a Chapter 7 bankruptcy. What is Chapter 13 bankruptcy?
In a Chapter 13 bankruptcy, a debtor works out a plan to partially repay debts over a period of 3 to 5 years. The most common circumstances for a Chapter 13 are where a person earns too much to file under Chapter 7 or is behind on home mortgage or car payments. A Chapter 13 allows debtors to keep a house or car and get caught up on payments over the 3 to 5 year period. Will I lose everything if I file for bankruptcy?
Many people are concerned about losing their homes, cars or other property as part of a Chapter 7 or 13 bankruptcy. Under the bankruptcy code, certain property is considered “exempt” or protected as part of the bankruptcy. The average person finds that most of his or her property is “exempt” or protected. Therefore, many if not most, individuals who file bankruptcy do not lose any of their property. Also, in a Chapter 7, if a person has a home or car that is subject to a loan, the person can generally “reaffirm” that debt and keep the property. Essentially, the person continues to pay for and therefore keep the house and car. Of course, exceptions exist so it is essential to speak with a bankruptcy attorney before concluding that a specific item is “exempt” or not. Won’t bankruptcy ruin my credit rating?
If you are considering bankruptcy, you probably have bad credit already from late or missed payments. Many people find that after a Chapter 7 or Chapter 13, they are able to obtain car loans, mortgages and credit cards relatively soon. A credit counselor will advise you on ways to achieve a good credit rating after bankruptcy. Also, a lender is in the best position to advise you as to how he or she would view a bankruptcy. Which debts are discharged?
The following are the most common debts that are discharged in bankruptcy: credit card bills, medical bills, utility bills, judgments, and monies owed for a house or car that has been returned to the lender. Child support, domestic support obligations, certain taxes and student loans are examples of debts that are not dischargeable. There are others. You should speak with a bankruptcy attorney to determine if a specific debt is dischargeable or not. Can I file bankruptcy more than once?
Generally, an individual who has obtained a Chapter 7 discharge must wait 8 years before filing another Chapter 7. However, a person who has obtained a Chapter 7 discharge may be able to proceed under Chapter 13 and vice versa. There are specific rules that can best be explained by an attorney who has been made fully aware of your unique situation. What were the 2005 changes in the federal bankruptcy law?
There were many, many changes. One significant change involves the use of a “means test” to determine if a person qualifies to file a Chapter 7 case. Essentially, if a person earns too much to file a Chapter 7, that person then must file a Chapter 13 instead. What amounts to “too much money?” The standards are based on government figures. The figures are different for households of one person, two persons, three persons and so on. Another change involves the requirement of credit counseling before a person can file, and the completion of a personal financial management course before the person can obtain a discharge. These are just examples of the many changes. Do I have to go to credit counseling?
The new laws require basic credit counseling before filing for bankruptcy. This takes about 20 minutes and can be done by phone or on-line. Most clients find it helpful to have a budget and a plan for staying out of financial trouble. A bankruptcy attorney can refer you to a credit counseling program that is convenient, easy and flexible. Can creditors sue me if I file for bankruptcy? Generally no. The filing of a bankruptcy petition results in what is called an automatic stay. This “stay” prevents creditors from taking action against you. Unless your creditors obtain a “relief from stay,” they should not be able to sue you or engage in other collection efforts. How much does it cost to hire a bankruptcy lawyer?
Fees depend on the type of bankruptcy that best serves your personal situation, whether that is a Chapter 7 or 13. The fees charged are fair and competitive. Mr. Zaleski can discuss fees when you call for your free initial consultation. Also, in a Chapter 13 case, it is oftentimes possible to pay the fees as part of the plan. This allows you to pay the fees over a 36 to 60 month period. The above statements are informational and not intended as legal advice. Contact us today to schedule your appointment and get solid legal counsel and answers specific to your situation. or email us today! | Madison Office
10 East Doty Street, Suite 800
Madison, WI 53703
Phone: (608) 441-5199
Fax: (608) 441-5707 | Janesville Office
20 E. Milwaukee, Suite 302
Janesville, WI 53545
Phone: (608) 758-4080
Fax: (608) 758-4081 |
The Zaleski Law Firm is a debt relief agency. We help people file for Chapter 13 and Chapter 7 bankruptcy relief under the Bankruptcy Code. The Zaleski Law Firm serves clients in Dane County (Madison, Middleton, Monona, Stoughton, Fitchburg), Rock County (Janesville, Beloit), Columbia County (Columbus, Portage, Wisconsin Dells), Green County (Monroe), Sauk (Sauk City, Baraboo, DeForest, Wisconsin Dells), Lafayette County, Adams County, Grant County and the surrounding areas. Printer Friendly View
Add To Favorites
Send To A Friend
| | |
