Chapter 13 Bankruptcy in Wisconsin

For individuals who do not qualify for Chapter 7 or those who want to protect valuable assets while restructuring their debt, Chapter 13 bankruptcy offers a powerful solution. Unlike Chapter 7, which eliminates most unsecured debts outright, Chapter 13 allows you to reorganize your debts into an affordable repayment plan—often saving thousands of dollars in interest, penalties, and fees.

At Williamson & Siler, S.C., we help Wisconsin residents use Chapter 13 to regain financial control while keeping their home, car, and other essential assets.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is known as a “wage earner’s plan” because it is designed for individuals who have a steady income but need time to repay debts. Under Chapter 13, your debts are consolidated into a single monthly payment that is customized to your financial situation and paid over a 3- to 5-year period. At the end of the plan, any remaining eligible debts may be discharged.

Key Benefits of Chapter 13:

✅ Stops Foreclosure – Allows you to catch up on missed mortgage payments and avoid losing your home.
✅ Reduces Interest & Penalties – Saves thousands by restructuring debt, reducing interest rates, and eliminating fees.
✅ Protects Your Assets – Unlike Chapter 7, you do not have to liquidate any property.
✅ Consolidates Debt – Combines multiple debts into a single, manageable payment.
✅ Stops Wage Garnishments & Creditor Harassment – Creditors must immediately stop collection efforts once you file.
✅ Flexible Repayment Plan – Payments are based on your income and expenses, making it possible to affordably pay down debts.

Who Qualifies for Chapter 13?

To file for Chapter 13, you must:

• Have a regular source of income (such as wages, self-employment, or Social Security).
• Have unsecured debts under $465,275 and secured debts under $1,395,875 (as of 2024 limits).
• Be able to make monthly payments under a court-approved repayment plan.
• Not have filed a Chapter 13 case in the past two years or a Chapter 7 case in the past four years.

If you are behind on your mortgage, struggling with tax debt, or facing repossession, Chapter 13 may be the best way to reorganize your finances while keeping your home and other assets.

How Chapter 13 Saves You Money

While Chapter 13 requires repayment of some debts, it can still provide substantial financial relief. Here’s how:

• Lower Interest Rates – Credit card and medical debt are paid back at little to no interest.
• Reduced or Eliminated Penalties – Late fees and penalties are often waived.
• Affordable Repayment Terms – Monthly payments are based on your actual ability to pay.
• Debt Discharge at the End – Some remaining unsecured debt may be wiped out once your plan is complete.

Many filers end up paying only a fraction of their original debt while keeping their home and other assets intact.

Will I Lose My Home or Car?

No—Chapter 13 is specifically designed to help you keep your property while getting back on track financially.

• Homeowners can use Chapter 13 to catch up on overdue mortgage payments over time, preventing foreclosure.
• Car owners can reduce or restructure their auto loan, sometimes lowering payments or reducing the total amount owed.
• Retirement accounts and other key assets remain protected under federal and Wisconsin bankruptcy laws.

The Chapter 13 Bankruptcy Process

1. Free Consultation – We review your financial situation to determine if Chapter 13 is the right choice.
2. Filing Your Petition – We prepare and submit your case to the bankruptcy court.
3. Automatic Stay Begins – Creditors must immediately stop collection actions, wage garnishments, and foreclosure proceedings.
4. Create a Repayment Plan – We work with you to develop a 3- to 5-year repayment plan that fits your budget.
5. Court Approval – A judge reviews and approves the plan, and you begin making payments.
6. Debt Discharge – After successfully completing the repayment plan, any remaining eligible debt is discharged, giving you a fresh financial start.

Is Chapter 13 Right for You?

Chapter 13 bankruptcy is a powerful tool for those who earn a steady income but need time to reorganize their debts while protecting their home and other assets. If you’re facing foreclosure, struggling with tax debt, or need relief from high-interest loans, Chapter 13 can provide the financial reset you need.

At Williamson & Siler, S.C., we have helped countless individuals in Wisconsin regain financial stability through Chapter 13 bankruptcy. Contact us today for a consultation and take the first step toward debt relief.