In Wisconsin, consumers have the opportunity to settle their debts through bankruptcy. These proceedings require them to follow a well-defined payment plan. It helps them to pay off their debts without incurring additional late charges. A Bankruptcy Attorney in Waukesha WI area helps them with these efforts.
Filing for Chapter 13
The first step for filing a chapter 13 claim is to evaluate the consumer’s income. To qualify for chapter 13, the consumer’s income should be higher than $62,839. They present proof of their income through pay stubs or bank statements for the previous six months. A Bankruptcy Attorney helps them to qualify for this chapter.
What is a Repayment Plan?
The repayment plan for chapter 13 allocates a specific amount for each debt included in the case. The court assigns a value for the monthly payments. The court determines if the payments are submitted by the consumer or garnished from their wages. The consumer must follow the guidelines ordered through this plan or it is discharged. Any debts that were discharged by the court are no longer the consumer’s responsibility. However, if the case is closed before its completion, they must pay these debts.
What is Disposable Income?
Disposable income is an amount left over after the consumer pays their monthly obligations. These obligations include the payment for the bankruptcy case. The consumer is ordered through the bankruptcy to use all disposable income to settle debts that aren’t included in the claim.
What Happens After Bankruptcy?
After bankruptcy, the case remains on the consumer’s credit history for up to 10 years. It could affect what lines of credit are available to them. Their credit score is reduced due to the bankruptcy. Some courts may require the consumer to attend additional credit counseling after the discharge of their case. This helps them to manage their finances more effectively.
In Wisconsin, consumers may file for chapter 13 if their income qualifies. These consumers provide income statements that help the court calculate their annual income. After they qualify, they must complete the prerequisites for these cases. Any consumer who wishes to file for chapter 13 should contact a Bankruptcy Attorney in Waukesha WI for more information.
