How to File for Chapter 7 Bankruptcy in Wisconsin

How to File for Chapter 7 Bankruptcy in Wisconsin

Filing for Chapter 7 bankruptcy in Wisconsin can provide relief for individuals overwhelmed by debt. This guide outlines the process step-by-step to help you understand what to expect.

Step 1: Determine Eligibility

To qualify for Chapter 7 bankruptcy in Wisconsin, you must pass the means test, which compares your income to the median income in the state. If your income is below the median, you can file. If it’s above, you may need to file for Chapter 13 bankruptcy instead. The means test considers your average monthly income over six months, excluding certain deductions.

Step 2: Complete Credit Counseling

Before filing, you are required to complete a credit counseling session with an approved agency. This session must occur within 180 days before your filing date. You’ll receive a certificate upon completion, which must be included in your bankruptcy petition.

Step 3: Gather Necessary Documentation

Compile essential documents, including:

  • Proof of income (pay stubs, bank statements)
  • A list of all debts (credit card bills, loans, etc.)
  • A list of assets (property, vehicles, etc.)
  • Tax returns for the last two years

Having these documents organized will streamline the filing process.

Step 4: Complete the Bankruptcy Forms

You’ll need to fill out several bankruptcy forms, including the Petition for Bankruptcy, Schedule of Assets and Liabilities, and Statement of Financial Affairs. These forms can be obtained from the United States Bankruptcy Court for the Western District of Wisconsin or downloaded from online resources. Be thorough and honest when filling them out.

Step 5: File Your Petition

Once your forms are completed, file your petition with the local bankruptcy court. In Wisconsin, this will typically be the U.S. Bankruptcy Court for the Western District. Be aware of the filing fee, which is around $335. If you can’t afford this, you may request a fee waiver or apply to pay in installments.

Step 6: Attend the 341 Meeting

After filing, you will be scheduled to attend the 341 Meeting of Creditors, usually held about 30 days later. This meeting gives creditors a chance to ask questions about your financial situation. You will need to provide identification, such as a driver's license, and your Social Security number.

Step 7: Complete Financial Management Courses

Before your bankruptcy can be discharged, you must complete a financial management course from an approved provider. This course typically lasts a few hours and covers budgeting, managing finances, and understanding credit.

Step 8: Obtain Your Discharge

Once you complete all the requirements, including the financial management course, you will receive a discharge of your debts, which can take several months. This discharge means you are no longer legally obligated to pay most of your debts, marking a fresh start.

Conclusion

Filing for Chapter 7 bankruptcy in Wisconsin can be a complex process, but following these steps will guide you through it. Remember to seek legal advice if you have any questions or uncertainties about your situation. Starting anew can lead to a healthier financial future.