Bankrupcty law has changed a bit in the last little while and this has left some Milwaukee residents concerned. However, these changes do not prohibit the use of Chapter 7 bankruptcy for eliminating debt. Milwaukee Chapter 7 is still an effective way to eliminate many types of debt.
You can still use Chapter 7 to eliminate most of your unsecured debts such as credit card balances and medical bills. Chapter 7 can also be used to remove judgments against you, rid yourself of garnishment of your bank accounts or wages, and allow you to keep your personal property, and almost always your home and your car as long as the value of these things is not greater than the allowed bankruptcy exemptions.
You initiate a Chapter 7 by filing certain legal documents with the court. These documents include a petition, schedules and statements of your assets as well as your monthly income and expenses. It currently costs $299 to file these documents with the bankruptcy court.
Before filing Chapter 7 you must have completed a court approved credit counseling course. It is not necessary to take the course in person, although that option is available. For many people it is much more convenient to take it on the telephone or using the internet. The cost for this credit counseling course ranges from $25 to $75, depending on which method you use. All methods of taking the course are acceptable to the court.
Immediately upon filing for Chapter 7 an automatic stay is created which prevents your creditors from contacting you directly by any means whatsoever. They cannot contact you by telephone, letter, in person, or in any other way.
Once your case is filed you must then attend a meeting with the court-appointed bankruptcy trustee where your case is discussed, the financial arrangements spelled out, and you are told what to expect from the proceeding. This is called a 341 meeting. Usually your bankruptcy attorney attends this meeting with you.
After that you must take another court-approved financial management course. This is very similar to the first course taken before you filed, and the charges are also similar. It is not very expensive and it is not very difficult either.
Once all the papers have been filed, the meetings attended, and the courses are taken you will receive a discharge from the court that wipes out your debts. Your creditors no longer have any claim upon you for debts that have been discharged. Certain types of debts cannot be discharged by a Chapter 7. These include taxes owed to the IRS or to a state government, alimony, maintenance or support payments, student loans, fraud related debts, and secured debts unless the collateral is surrendered. You are still obligated to make regular payments on these things in order to remain in compliance with the Chapter 7 process.
Before beginning a Milwaukee bankruptcy filing it is in your best interest to consult with a bankruptcy attorney who is familiar with Milwaukee bankrupcty law and court proceedings.