Filing for bankruptcy is the first step on your path to debt relief. Depending on if you file for Chapter 7 or Chapter 13, the details of what that relief will look like vary as each type focuses on different kinds of debt as well as different approaches to addressing it. Because of these nuances, many people question what filing for bankruptcy will and will not allow them to do. We highly recommend obtaining legal advice from experienced bankruptcy attorneys before filing so you are not left navigating the process on your own. To give you some insights and perhaps help you form questions for your bankruptcy lawyer, we explore what filing for bankruptcy in Milwaukee will allow you to do.
Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy allows you to eliminate the majority of your debts. These debts include credit cards, medical bills, utility back payments, and more. Additionally, it can clear evictions and repossessions, as well as reinstate your driver’s license if it has been suspended. In most cases, filing for Chapter 7 bankruptcy will allow you to retain your home and vehicle and continue payments on them. Once Chapter 7 has been filed, collection efforts on your debts should immediately cease since your debts will be completely cleared.
With the knowledge of your debts being cleared, filing for Chapter 7 bankruptcy with the help of a lawyer allows you to redirect all calls you do receive regarding your previous debts to your bankruptcy lawyer. At the Bankruptcy Law Center LLP, we ask clients to give any debt collectors our name and number and simply hang up.
While you will not be able to continue using any current credit cards, you can immediately apply for a new credit card after bankruptcy is completed. There are many low credit score options available for exactly these purposes. Obtaining a new credit card at the appropriate time can be a beneficial step toward rebuilding your credit score.
Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy offers a variety of benefits to struggling debtors, including the ability to catch up on payments in a more reasonable timeframe. The payments Chapter 13 allows you to catch up on include mortgage and vehicle payments, IRS debts, and child support. With Chapter 13 bankruptcy, you work with your lawyer and the court to establish a repayment plan for these items that will work for you.
One of the ways the repayment plan can work in your favor is by downgrading your overall debt amount. Additionally, you are allowed to save your valuable assets and pay at a 0% interest rate on credit card and medical debt. Chapter 13 bankruptcy is a consumer option in part because of the prevalence of high-interest-rate credit cards and how difficult it can become to stay up-to-date on high recurring monthly credit card bills without falling behind financially. Chapter 13 allows you to essentially reset your credit card debt to something manageable.
When it comes to applying for additional credit cards, you will want to either wait for the bankruptcy to be discharged or gain approval from your bankruptcy trustee. While it usually takes years for Chapter 13 bankruptcy to discharge because it is viewed as a payment restructuring, your bankruptcy trustee may grant approval for a credit card application sooner. Your bankruptcy trustee is the person assigned by the bankruptcy court to manage and oversee your repayments so they generally remain a point of contact throughout the process. However, when working with The Bankruptcy Law Center LLP, you can call us at any time throughout the process to discuss your rights and options.
Get Help Filing For Bankruptcy In Milwaukee
The most important decision you can make when filing for bankruptcy is which bankruptcy law firm to retain. The Bankruptcy Law Center LLP is experienced in assisting clients who are filing for bankruptcy in Milwaukee. We know the ins and outs and can help you get the most out of your bankruptcy. You may find yourself with significant debt relief, free from the hassles of debt collectors, and allowed to restart your financial life. Contact us today to get started with a free case evaluation.