Filing Bankruptcy in Wisconsin: Step-by-Step

Filing Bankruptcy in Wisconsin: Step-by-Step

Filing for bankruptcy in Wisconsin can be a complex process, but it offers individuals and businesses a chance to regain control over their financial situation. Here's a step-by-step guide to help you navigate the bankruptcy filing process in Wisconsin.

Step 1: Assess Your Financial Situation

Before filing for bankruptcy, it’s crucial to evaluate your financial status. Gather information on your debts, assets, income, and expenses. This will help you determine whether bankruptcy is the right option for you and which chapter you may qualify for: Chapter 7 or Chapter 13.

Step 2: Complete Credit Counseling

Under federal law, you must complete credit counseling from an approved agency within 180 days before filing for bankruptcy. This counseling will help you understand your options and the process involved. After the counseling session, you will receive a certificate, which you will need to file with your bankruptcy petition.

Step 3: Gather Necessary Documents

To file for bankruptcy, you will need to collect various documents, including:

  • Tax returns for the past two years
  • Pay stubs or income statements for the last six months
  • Bank statements
  • A list of all debts and creditors
  • A list of all assets

Step 4: Choose the Right Bankruptcy Chapter

Decide whether to file for Chapter 7 or Chapter 13 bankruptcy:

  • Chapter 7: This option is often referred to as "liquidation" bankruptcy and involves selling non-exempt assets to pay off creditors.
  • Chapter 13: This allows individuals to keep their property while they pay off their debts over a 3- to 5-year repayment plan.

Step 5: Complete the Bankruptcy Forms

Fill out the necessary bankruptcy forms accurately. The forms typically include your petition, schedules, and statement of financial affairs. You can obtain these forms through the United States Courts website or the Wisconsin bankruptcy court’s website.

Step 6: File Your Bankruptcy Petition

Once your bankruptcy forms are completed, file them with the United States Bankruptcy Court for the Eastern or Western District of Wisconsin, depending on your location. You can file in person or through electronic filing (e-filing). Be prepared to pay the court filing fee, which may vary. If you cannot afford the filing fee, you can request a fee waiver.

Step 7: Attend the Meeting of Creditors

After filing, you will be scheduled for a meeting of creditors (341 meeting) within a few weeks. During this meeting, your creditors can ask you questions about your financial situation and your bankruptcy filing. It is important to attend this meeting and respond to questions honestly.

Step 8: Complete Debtor Education Course

After filing for bankruptcy, you must complete a debtor education course from an approved provider before receiving your discharge. This course provides information about budgeting, managing finances, and rebuilding credit.

Step 9: Receive Your Discharge

If all goes well, you will receive a discharge order from the bankruptcy court, eliminating most, if not all, of your debts. This process generally takes a few months, especially for Chapter 7 filings.

Step 10: Rebuild Your Credit

After bankruptcy, it’s essential to start rebuilding your credit. Obtain your credit report, create a budget, and avoid taking on unnecessary debt. Consider getting a secured credit card to help rebuild your credit score over time.

Filing for bankruptcy can be a crucial step towards financial recovery. By following these steps and seeking advice from a qualified bankruptcy attorney, you can effectively manage your financial obligations and start fresh in Wisconsin.