Wisconsin has its fair share of residents that are unable to meet their obligations to their creditors and often file for bankruptcy to protect themselves from the wrath of creditors. This is a very important step to take if one is unable to meet the obligations to creditors since it helps protect the debtors legally. The state of Wisconsin uses the federal provisions to protect its residents and bankruptcy laws from creditors but also has the jurisdiction of setting regulations on the proceedings of the bankruptcy cases.
Some of the conditions that are set include the tests to follow in order to file for a bankruptcy petition. There are several factors that are considered when one is applying for a bankruptcy petition. One of the factors that have to be met is residency; one has to be a residence of Wisconsin if one is to apply for a bankruptcy petition successfully. The condition in this case is that the applicant has to have been in the region for over 180 days prior to the application date. The other qualification that one has to meet when applying for a petition is to pass the means test. The means test is a comparison of the income of the applicant to that of the median state income. The type of petition that one is successful in is thus determined by whether one falls below or above the median income.
Wisconsin Bankruptcy Exemptions:
Some of the common exemptions include tools of trade, homestead, insurance, public benefits and alimony. The values of the exemptions are however determined by the state one is living in.
Wisconsin Chapter 7 Bankruptcy Laws:
The two main chapters that most of the bankruptcy cases in Wisconsin fall under are Chapter 7 bankruptcy laws and chapter 13; this is mostly because the bad credits usually happen to individuals as opposed to corporations. Exemptions on the bankruptcy are mostly recoded under chapter 7.
Wisconsin Chapter 13 Bankruptcy Laws:
If denied chapter 7, the second choice is chapter 13 bankruptcy option. the Chapter13 bankruptcy laws are different and, unlike chapter 7, you are required to repay the debt owed according to the court order plan