Chapter 7 Bankruptcy in Wisconsin

Financial difficulties can feel overwhelming, but Chapter 7 bankruptcy offers a fresh start for individuals burdened by unmanageable debt. If you qualify, Chapter 7 can eliminate most unsecured debts, giving you a clean financial slate while protecting essential assets like your home, car, and retirement savings. At Williamson & Siler, S.C., we help Wisconsin residents navigate the Chapter 7 process, ensuring they receive the full benefits of debt relief while protecting what matters most.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often called “liquidation” bankruptcy, but in reality, most people who file do not lose any of their assets. Instead, eligible debts—such as credit cards, medical bills, and personal loans—are completely wiped out. This makes Chapter 7 an attractive option for individuals facing significant financial hardship.

Qualifying for Chapter 7 in Wisconsin

Not everyone qualifies for Chapter 7 bankruptcy. To file, you must pass a means test, which examines your income, expenses, and financial situation.

• Income Limits – Your income must be below the Wisconsin median income for your household size. If your income is higher, you may still qualify by demonstrating that your disposable income is insufficient to repay debts.
• Financial Hardship – Even if you exceed the income threshold, high expenses such as medical bills, mortgage payments, or family support obligations may still allow you to qualify.
• No Recent Bankruptcy Discharge – You must wait eight years from a previous Chapter 7 discharge or six years from a prior Chapter 13 discharge to file again.

If you are unsure whether you qualify, our attorneys can assess your financial situation and determine the best course of action.

Benefits of Chapter 7 Bankruptcy

For those who qualify, Chapter 7 offers significant advantages:

• Eliminates Most Debts – Credit card balances, medical bills, payday loans, and other unsecured debts are wiped out, freeing you from financial stress.
• Quick Resolution – The process typically takes 3-6 months, allowing you to move forward faster than with other forms of debt relief.
• Stops Collections & Lawsuits – Filing for bankruptcy immediately halts creditor harassment, wage garnishments, and pending lawsuits.
• Protects Essential Assets – Wisconsin’s bankruptcy exemptions allow most filers to keep their home, vehicle, retirement accounts, and personal belongings.
• No Repayment Plan – Unlike Chapter 13, there is no need to commit to a multi-year repayment plan. Once debts are discharged, they are gone for good.

Will I Lose My House, Car, or Retirement Savings?

Many people hesitate to file for bankruptcy because they fear losing their most valuable assets. However, Wisconsin law provides exemptions that protect most filers’ homes, vehicles, and retirement accounts:

• Home – If your home equity is within Wisconsin’s homestead exemption, you can keep your house.
• Car – You can typically keep your car if it falls under the motor vehicle exemption.
• Retirement Accounts – Most retirement accounts, including 401(k)s and IRAs, are fully protected under bankruptcy law.

If you have significant assets beyond these exemptions, our attorneys can discuss strategies to protect them while still pursuing debt relief.

The Chapter 7 Bankruptcy Process

1. Free Consultation – We review your financial situation to determine if Chapter 7 is the right choice.
2. Filing Your Petition – We prepare and submit your bankruptcy paperwork to the court.
3. Automatic Stay Begins – Creditors must stop all collection actions immediately.
4. Meeting of Creditors – A brief hearing where you confirm financial details under oath.
5. Debt Discharge – After 3-6 months, eligible debts are wiped out, and you can move forward debt-free.

Take the First Step Toward Debt Relief

Chapter 7 bankruptcy is a powerful tool for those who qualify, allowing for a true financial reset. If you’re struggling with overwhelming debt, Williamson & Siler, S.C. can help you determine whether Chapter 7 is right for you and guide you through every step of the process.

Contact us today to schedule a consultation and explore your options.