Three Types of Options Provided to Individuals by a Bankruptcy Lawyer in Milwaukee, WI

A bankruptcy lawyer in Milwaukee, WI helps clients quickly become debt-free or to arrange affordable payments with creditors in a documented plan. Either way, the person gets a new start for a better financial future. Through mandated financial counseling, the individual learns essential aspects to avoid similar problems in the years to come. The client must pay a fee to the law firm, but bankruptcy attorneys are typically compassionate professionals who will work with individuals on ways to pay. This can be especially important for the person who needs to make an emergency bankruptcy filing, a situation that sometimes arises when a homeowner wants to stop or delay a foreclosure.

Chapter 7 bankruptcy, as filed with an organization such as Horizons Law Group, discharges most of the debts. Student loans and income taxes generally do not qualify for discharge, but credit card, personal loan and payday loan balances do. The individual will need to allow liquidation of any assets to pay creditors at least some percentage of what is owed, with some exceptions. Get more information about this particular law firm online.

In contrast, a chapter 13 filing creates an arrangement in which the person makes a monthly payment to a trustee who distributes the money to various creditors. This plan lasts three to five years and allows the person to pay back all, or nearly all, of the money owed. Only individuals who earn enough income will qualify for chapter 13 through a bankruptcy lawyer in Milwaukee, WI. The default rate on those programs is relatively high, so it’s important for each participant to have excellent potential to complete the full arrangement. They must be able to pay all their current bills in addition to payments to the trustee, and that total monthly amount can be problematic.

Chapter 11 is another possibility for an individual if that person is the sole proprietor of a business. Self-employed persons may consider going this route, particularly if their debt load is high. However, they must understand that the filing fee is substantially higher, and that may not be affordable for many people who need to declare bankruptcy.

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