wis-law.com is your doorway to information pages on legal subjects including Wisconsin Divorce Law, Wisconsin Real Estate Law, Wisconsin Personal Injury Law, Bankruptcy Law, Social Security Law, Wills and Probate and Landlord/Tenant Law in Wisconsin, as well as issues regarding motor vehicles, bankruptcy and insurance. wis-law.com is also a central access point to other resources available on the web with respect to Wisconsin Law and Government.

CHAPTER 13 BANKRUPTCY

Chapter 13 Bankruptcies can be utilized by individuals and unincorporated businesses. A Chapter 13 bankruptcy allows a debtor to pay off his/her creditors with monthly installments, while retaining his/her estate. In Chapter 13 bankruptcy the trustee shares estate administration with the debtor. The main difference between Chapter 7 and Chapter 13 bankruptcies is that income received after the filing of a petition is used to repay the creditors in Chapter 13 filings. The debtor still owns their estate, but establishes a plan, with the trustee, to repay the creditors from the debtors' continuing income. The plan is usually in place for three years, however, some plans take up to five years. Once this time period is expired, then the debts are discharged. During the term of a plan, a debtor must live on an extremely fixed income and firm budget and the court has the final say in determining whether or not the proposed budget is realistic.

Generally, the plans call for the debtor to live on a fixed income, then a certain amount is paid to the trustee, and finally the creditors are each paid the remaining amount. However, many problems can occur after the approval of a plan. There is a great amount of debate as to the power of the trustee to alter the amount of payments made to the creditors. This is understandable, since the court only approves a general plan, and does not anticipate what will take place in the weeks or months in which the income of the debtor may vary.

Creditors have limited rights under this chapter. They can either accept or reject a proposed plan. If they accept the plan, it may then be approved by the court. If the plan is rejected, then the debtor can attempt to cramdown the plan on the creditor. The effect of this action varies in different jurisdictions.

Once the court confirms a plan, debtors are discharged of many of the debts that they would not be under a Chapter 7 Bankruptcy. The list of exceptions to discharge include: taxes, family support, student loans, and others listed at sec. 523 of the Bankruptcy Code.

OVERVIEW OF BANKRUPTCY LAW

CHAPTER 7

CHAPTER 11

U.S. BANKRUPTCY CODE SECTION 54

BANKRUPTCY EXEMPTIONS IN WISCONSIN

The materials on this World Wide Web site are provided purely for informational purposes and are not legal advice. These materials are intended, but not promised or guaranteed, to be correct, complete, and current. This web site is not intended to be a source of advertising, solicitation or legal advice. Therefore, the reader should not consider this information an invitation for an attorney-client relationship. Readers should not act or rely upon any information contained in this World Wide Web site and should always seek the advice of competent counsel.

The owner of this web site is a law firm, the Johnson Law Office which organized the Brain Injury Law Group. The Johnson Law Office is licensed to practice in the States of Wisconsin , Illinois and Michigan. The Brain Injury Law Group does not wish to represent anyone desiring representation based upon their viewing any portion of this World Wide Web site that fails to comply with all legal and ethical rules in such individuals state. While not intended to do so, but in a good faith effort to comply with all rules and regulation which may be applicable to it, the Brain Injury Law Group hereby informs readers that this site may be construed as advertising and promotional materials. The Brain Injury Law Group makes no representation that it can obtain the same results as reported in this web site in other legal matters.