Wisconsin Bankruptcy Laws

Wisconsin is divided into two bankruptcy districts: Wisconsin Eastern Bankruptcy Court and Wisconsin Western Bankruptcy Court. These courts serve the entire state of Wisconsin . Bankruptcy provides debtors with a fresh start because bankruptcy consumers against lawsuit from creditors. This protection starts after you've completed the mandatory credit counseling and filed your bankruptcy with the Court.

Wisconsin Bankruptcy Exemptions
Exemptions are property you can keep under chapter 7 bankruptcy. According to Lawyers.com, you can choose from two exemption schemes: federal or Wisconsin state. Under federal bankruptcy laws, you may keep:

• Your home, including co-op or mobile home, to $20,200.
• Life insurance payments for person you depended on, needed for support.
• Life insurance policy with loan value, in accrued dividends or interest to $10,775.
• Unmatured life insurance contract, except credit insurance policy.
• Alimony, child support needed for support.
• Pensions and Retirement Benefits, ERISA - qualified benefits needed for support.
• $525 per item in any household goods up to a total of $10,775.
• Health Aids.
• Jewelry to $1,350.
• Lost earnings payments.
• Your motor vehicle to $3,225.
• Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation, and veterans' benefits.
• Tools of trade up to $20,200.
• Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption.

Under Wisconsin bankruptcy laws, you may keep:

• Property you occupy to $40,000.
• Burial provisions.
• Household goods and furnishings, clothing, keepsakes, jewelry, appliances, books, musical instruments, firearms, sporting goods, animals and other tangible property to $5,000.
• Lost future earnings recoveries needed for support.
• Motor vehicles to $1,200.
• Personal injury recoveries to $25,000.
• Tenant's lease or stock interest in housing co-op.
• Wages used to purchase savings bonds.
• Wrongful death recoveries needed for support.
• Federal disability insurance benefits.
• Life insurance proceeds.
• Military pensions.
• Private or public retirement benefits.
• Crime victims' compensation.
• Social service payments.
• Unemployment compensation.
• Veterans' benefits.
• Workers' compensation.
• Alimony and child support.
• Property of business partnership.
• Business and farm property to $7,500.
• 75% of earned but unpaid wages.

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.