What is Bankruptcy?

Wisconsin Chapter 7 Bankruptcy Lawyer Chelsea A Whitley explains...

Chapter 7 Bankruptcy

. . A Chapter 7 Bankruptcy was designed to eliminate debt. It can give a person a complete discharge (elimination) of unsecured debt.

. . Unsecured debt is a defined as debt not tied to property, such as:

Credit Card Debt
Medical Bills
Payday Loans
Utility Bills

BANKRUPTCY OVERVIEW PROCESS:

STEP ONE: PRE-FILING COUNSELING
. . Before you can actually file for bankruptcy, you must consult with an approved debt-counseling agency to discuss debt relief alternatives This step involves a minor time commitment and it can be done by phone or over the Internet.

Bankruptcy Credit Counseling Links:

Hummingbird Credit Counseling Education Online only 1-800-645-4959
Green Path, Inc. 866-332-8435

STEP TWO: FILING THE BANKRUPTCY PETITION
. . A bankruptcy case is commenced by the filing of a petition. You must also file a statement of your assets and liabilities and schedules listing your creditors. The property a debtor can keep through the bankruptcy is determined by the exemptions available under State or Federal law. In both Minnesota and Wisconsin, a debtor is also allowed to choose federal exemptions instead of state exemptions.
STEP THREE: DEBTOR EDUCATION
. . Shortly after your Bankruptcy Petition is filed you must take another debtor education course. The purpose of this debtor education counseling is to learn how to create and stick to a realistic budget so that you do not repeat the pattern that led to your current financial straits. It also gives you helpful information on credit scores and how to rebuild your credit. Your bankruptcy will not be discharged until you complete the course. Like the pre-filing Counseling course, the course can be completed on your own schedule, and often can be done by phone or over the Internet.
STEP FOUR: MEETING OF THE CREDITORS
. . Approximately 4-6 weeks after your petition is filed, you must attend a meeting of the creditors ("341 meeting") with the trustee at the assigned Federal Building. At this meeting, you must bring with you your social security card, driver's license, most recent paycheck stub, and a bank statement that includes the date the petition was filed.
STEP FIVE: DISCHARGE
. . If there are no objections, you will receive a Discharge of Debt in the mail, approximately 3-4 months after the filing of the Petitioner.

STOP COLLECTION CALLS AND LAW SUITS

Bankruptcy's Automatic Stay Stops Creditor Harassment
. . One of the most important benefits of bankruptcy appears as soon as you file your petition for relief. Collections come to a sudden stop, and your creditors cannot contact you or your family either by telephone or in writing. Known as the automatic stay, this feature of the bankruptcy is essential to protecting the system of debt relief created under federal law.
. . All listed creditors are notified promptly of your bankruptcy case, and most know enough to stop all collection activity. If they contact you, all you need to tell them is your case number.
Once in a while, you might hear from a creditor by mistake, but giving them your case number and my name will generally make them go away. Creditors who continue to pursue collections or harassment are violating the automatic stay and can be punished for contempt of court.
. . Not only does the automatic stay interrupt standard collection calls and letters, it also covers such other actions as the following:

Any lawsuit against a debtor in bankruptcy
Garnishment, attachment, repossession or other collection strategies
Mortgage foreclosure
Eviction
Enforcement of judgments or liens
Utility shut off

Links to Official Court Websites for more information:

Click the following links to obtain more information concerning:

	Free Initial Consultation
	Interview Questionnaire
	Documents to Bring to Initial Interview

Chelsea A Whitley Attorney at Law ~ (715) 268-6500
234 Keller Ave. S Suite 100 - Amery, WI 54001

Bankruptcy Attorney Serving: Barron, Hudson, New Richmond, Osceola, Siren, St. Croix Falls WI & Stillwater, Taylors Falls, Woodbury MN & Surrounding Areas