If you’re considering filing bankruptcy in Wisconsin, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Wisconsin, like in most U.S. states, involves meeting certain eligibility criteria and following specific procedures. Bankruptcy is a legal process designed to provide relief to individuals and businesses overwhelmed by debt. In Wisconsin, individuals can file for bankruptcy under either Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. Each chapter has its own set of requirements and implications, so it’s important to understand which one you may be eligible for.

Chapter 7 Bankruptcy: Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals or businesses with limited income and assets who are unable to repay their debts. To qualify for Chapter 7 bankruptcy in Wisconsin, you must meet specific criteria:

1. Means Test: The means test is a crucial step in determining your eligibility for Chapter 7 bankruptcy. It compares your household income to the median income for a similar household size in Wisconsin. If your income is below the median, you generally qualify for Chapter 7. If your income exceeds the median, you may still qualify by passing the second part of the means test, which assesses your disposable income after deducting certain allowed expenses.
2. Credit Counseling: Before filing for Chapter 7 bankruptcy, you must complete a credit counseling course from an approved agency. This requirement is meant to ensure that you explore other debt relief options before proceeding with bankruptcy.
3. Financial Management Course: After filing for Chapter 7 bankruptcy, you must also complete a financial management course from an approved provider. This course is aimed at helping you manage your finances more effectively in the future.
4. Previous Bankruptcy Discharge: If you’ve received a Chapter 7 discharge within the past eight years, you may not be eligible for another Chapter 7 discharge. However, you may still be eligible for Chapter 13 bankruptcy.

Chapter 13 Bankruptcy: Chapter 13 bankruptcy, often called “reorganization bankruptcy,” allows individuals with a regular income to develop a repayment plan to pay off their debts over a period of three to five years. To qualify for Chapter 13 bankruptcy in Wisconsin, you must meet certain criteria:

1. Steady Income: You need to have a reliable source of income that can support the proposed repayment plan. This income can come from various sources, including employment, self-employment, retirement benefits, or rental income.
2. Debt Limits: There are debt limits for filing under Chapter 13. These limits are adjusted periodically to account for inflation.
3. Credit Counseling: Similar to Chapter 7, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
4. Plan Feasibility: You must submit a viable repayment plan to the court, demonstrating your ability to make regular payments over the specified period.
5. Tax Filings: You must have filed your federal and state income tax returns for the past four years.

Bankruptcy may not be the right solution for everyone, and alternatives such as debt consolidation, negotiation with creditors, or credit counseling should also be considered. Bankruptcy can have long-term consequences on your credit, so it’s essential to carefully evaluate your options and seek professional advice to make an informed decision regarding your financial future.

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Do You Need a Lawyer to File For Bankruptcy in Wisconsin?

Filing for bankruptcy in Wisconsin, like in most U.S. states, can be a complex legal process with potential long-term consequences for your financial future. While it is possible to file for bankruptcy without an attorney, whether or not you need a lawyer depends on various factors, including the type of bankruptcy you’re pursuing (Chapter 7 or Chapter 13), your individual financial situation, and your comfort level with legal procedures and paperwork.

Here are some key considerations to help you decide whether to hire an attorney when filing for bankruptcy in Wisconsin:

1. Complexity of Your Case: If your financial situation is relatively straightforward, and you meet all the eligibility requirements for bankruptcy, you may consider filing pro se (without an attorney). However, if your case involves complex issues such as substantial assets, significant debt, joint filings with a spouse, or potential challenges from creditors, it’s advisable to consult with an experienced bankruptcy attorney. They can navigate the intricacies of the bankruptcy process and help protect your interests.
2. Legal Expertise: Bankruptcy law is a specialized field with its own set of rules and procedures. An attorney who specializes in bankruptcy will have a deep understanding of federal and state bankruptcy laws, as well as the local rules and practices of the Wisconsin bankruptcy court. Their expertise can help ensure that your case is handled correctly and efficiently.
3. Evaluation of Alternatives: A bankruptcy attorney can assess your overall financial situation and advise you on whether bankruptcy is the most suitable option. They can explore alternatives like debt negotiation, debt consolidation, or credit counseling, which may better serve your needs and have less impact on your credit.
4. Chapter Selection: Choosing between Chapter 7 and Chapter 13 bankruptcy requires a thorough understanding of each chapter’s advantages, disadvantages, and eligibility criteria. An attorney can help you determine which chapter best aligns with your goals and financial situation.
5. Asset Protection: If you have valuable assets, an attorney can guide you in protecting as much property as possible through exemptions provided by Wisconsin and federal bankruptcy laws. They can help you make informed decisions about what assets may be at risk and how to safeguard them.
6. Creditor Negotiations: An attorney can handle communications with creditors and address any challenges or objections they may raise during the bankruptcy process. They can negotiate with creditors on your behalf, potentially securing more favorable terms.
7. Paperwork and Documentation: Filing for bankruptcy involves extensive paperwork, including the preparation of bankruptcy petitions, schedules, and statements. An attorney can ensure that all required documents are accurately completed and filed on time, reducing the risk of errors or omissions that could delay or jeopardize your case.
8. Court Representation: If you need to attend court hearings, an attorney can represent you before the bankruptcy court, presenting your case professionally and effectively. They can also guide you through the court’s procedures and expectations.
9. Long-Term Impact: Bankruptcy has long-term consequences on your credit and financial future. An attorney can help you develop a post-bankruptcy financial plan to rebuild your credit and make a fresh start.
10. Peace of Mind: Engaging a bankruptcy attorney provides peace of mind, knowing that you have a knowledgeable advocate on your side who can guide you through the process, protect your rights, and help you achieve the best possible outcome.

While hiring an attorney for bankruptcy in Wisconsin comes with costs, many individuals find that the benefits far outweigh the expenses. If you’re unsure about whether to proceed with an attorney, consider consulting with one for an initial evaluation. They can assess your situation and provide guidance on the most appropriate course of action, whether that involves hiring legal representation or pursuing bankruptcy on your own. Ultimately, the choice depends on your individual circumstances and comfort level with the bankruptcy process.

Cost to File Chapter 7 Bankruptcy in Wisconsin

The cost to file for Chapter 7 bankruptcy in Wisconsin consists of several fees and expenses that are associated with the bankruptcy process. It’s important to understand these costs and budget for them when considering bankruptcy as an option. Here is an overview of the main expenses involved in filing for Chapter 7 bankruptcy in Wisconsin:

1. Filing Fee: The filing fee for a Chapter 7 bankruptcy case in Wisconsin is $374. This fee is payable to the bankruptcy court when you submit your bankruptcy petition and related documents. It’s a mandatory fee, and you must pay it to initiate your bankruptcy case. The court may allow you to pay the filing fee in installments if you are unable to afford the full amount upfront.
2. Credit Counseling Fee: Before filing for Chapter 7 bankruptcy, you are required to complete a credit counseling course from an approved agency. The cost of this course can vary but typically ranges from $28 to $60. Some agencies offer fee waivers or reduced rates based on your income.
3. Attorney Fees: If you choose to hire an attorney to assist you with your Chapter 7 bankruptcy case, you will need to pay their legal fees. Attorney fees can vary widely depending on the complexity of your case, your location within Wisconsin, and the attorney’s experience. On average, you can expect attorney fees to range from $1,200 to $2,800 or more for a Chapter 7 case. Hiring an attorney is optional, but it is highly recommended due to the complexity of bankruptcy law.
4. Credit Report Fees: To complete your bankruptcy paperwork accurately, you may need to obtain a copy of your credit report, which can cost around $12 to $25 per report. It’s essential to have an up-to-date credit report to list all of your creditors and debts accurately.
5. Miscellaneous Costs: There may be other miscellaneous expenses associated with your bankruptcy, such as postage, notary fees, photocopying, and transportation to court hearings or meetings with your attorney.

It’s important to note that if you are unable to afford the filing fee and attorney fees, you may be eligible for a fee waiver or a payment plan. The court can grant a fee waiver if your income is below a certain threshold, and you can demonstrate that you are unable to pay the fees. Additionally, some attorneys offer payment plans to help clients manage their legal fees over time.

Cost to File Chapter 11 Bankruptcy in Wisconsin

The cost of filing for Chapter 11 bankruptcy in Wisconsin can be substantial, as Chapter 11 bankruptcy is primarily designed for businesses, including corporations and partnerships, rather than individual consumers. The expenses associated with Chapter 11 bankruptcy can vary widely based on the complexity of the case and the size and nature of the business. Here is an overview of some of the main costs and expenses involved in filing for Chapter 11 bankruptcy in Wisconsin:

1. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in Wisconsin is $1,960. This fee is payable to the bankruptcy court when you submit your bankruptcy petition and related documents. It’s a mandatory fee, and you must pay it to initiate your Chapter 11 case.
2. Attorney Fees: Given the complexity of Chapter 11 bankruptcy cases, businesses typically hire experienced bankruptcy attorneys to represent them throughout the process. Attorney fees for Chapter 11 cases can vary significantly based on factors such as the size and complexity of the business, the nature of the debts, and the specific legal services required. In many cases, attorney fees can range from tens of thousands of dollars to hundreds of thousands or even millions of dollars for larger, more complex cases.
3. Retention of Professionals: Chapter 11 cases often require the retention of various professionals, including accountants, financial advisors, appraisers, and turnaround consultants. The costs associated with these professionals can also be substantial, depending on the extent of their involvement in the case.
4. Administrative Expenses: Throughout the Chapter 11 process, there are ongoing administrative expenses, including court filing fees, the cost of mailing notices to creditors, and other miscellaneous costs associated with the bankruptcy proceedings.
5. Debtor-in-Possession Financing: In some cases, a business in Chapter 11 may need to secure financing to continue its operations during the bankruptcy process. Debtor-in-possession (DIP) financing often comes with interest and fees, and the terms can vary widely.
6. Creditors’ Committee Fees: In larger Chapter 11 cases, a committee of unsecured creditors may be formed to represent the interests of creditors. The costs associated with the committee’s legal and professional representation may also be part of the overall expenses.

Businesses considering Chapter 11 bankruptcy in Wisconsin should consult with experienced bankruptcy attorneys who specialize in this area to understand the full scope of costs and develop a comprehensive strategy for navigating the process effectively. An attorney can also help businesses explore alternative debt relief options, if applicable, and provide guidance on the best course of action based on the specific circumstances of the business.

Cost to File Chapter 13 Bankruptcy in Wisconsin

Filing for Chapter 13 bankruptcy in Wisconsin involves several costs and fees, but it can be a viable option for individuals seeking to reorganize their debts and create a manageable repayment plan. Chapter 13 bankruptcy is often referred to as a “wage earner’s plan” because it allows individuals with a steady income to develop a repayment plan to address their debts over a period of three to five years. Here is an overview of the main costs and fees associated with filing for Chapter 13 bankruptcy in Wisconsin:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case in Wisconsin is $340. This fee is paid to the bankruptcy court when you submit your bankruptcy petition and related documents. If necessary, you may be able to request to pay the filing fee in installments.
2. Attorney Fees: Many individuals who file for Chapter 13 bankruptcy in Wisconsin choose to hire an experienced bankruptcy attorney to guide them through the process. Attorney fees for Chapter 13 cases can vary depending on your location within Wisconsin, the complexity of your case, and the attorney’s experience. On average, you can expect attorney fees to range from $2,800 to $4,500 or more for a Chapter 13 case. An attorney can help you create a feasible repayment plan, navigate the legal requirements, and represent your interests in court.
3. Credit Counseling and Financial Management Courses: Before filing for Chapter 13 bankruptcy, you are required to complete two credit counseling courses: one before filing and another during the bankruptcy process. The cost for each course typically ranges from $28 to $60, although some agencies may offer reduced fees based on your income.
4. Trustee’s Fee: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your repayment plan and distribute payments to your creditors. The trustee is entitled to a percentage of each payment you make as a fee for their services. This fee is built into your repayment plan, so it does not require an upfront payment.
5. Miscellaneous Costs: You may encounter other miscellaneous expenses, such as postage, notary fees, photocopying, and transportation to court hearings or meetings with your attorney.

It’s important to note that Chapter 13 bankruptcy provides individuals with a structured framework to repay their debts over time while retaining their assets. The costs associated with Chapter 13 are typically spread out over the duration of the repayment plan, making it more manageable for many debtors.

Reliable Bankruptcy Attorneys in Wisconsin

Below is a list of reputable bankruptcy attorneys in Wisconsin. They can help you with both personal and business bankruptcy information.

Debt Advisors Law Offices Madison
2810 Crossroads Dr #4000, Madison, WI 53718, United States

Miller & Miller Law, LLC
2810 Crossroads Dr Suite 4001, Madison, WI 53718, United States

Bankruptcy Law Office of Richard A. Check S. C.
757 N Broadway # 401, Milwaukee, WI 53202, United States

Peter Francis Geraci Law L.L.C.
4550 S 27th St, Milwaukee, WI 53221, United States

Lombardo Law Office
2230 S 108th St, Milwaukee, WI 53227, United States

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Milwaukee

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