With all the different bankruptcy types, it can get a bit confusing to someone who is new to bankruptcy. What do all these numbers mean? In this post, our Elkhorn, WI Chapter 7 Bankruptcy attorney explains what the difference is between an Elkhorn, WI Chapter 7 Bankruptcy and an Elkhorn, WI Chapter 128 Debt Amortization Plan.
What is an Elkhorn, WI Chapter 7 Bankruptcy?
An Elkhorn, WI Chapter 7 Bankruptcy eliminates (or “discharges”) all unsecured debt. Unsecured debt is debt that does not have any collateral attached to it, such as utility bills, medical bills, credit card bills, past due rent, civil judgments, repossession balances, etc. To qualify for an Elkhorn, Wisconsin Chapter 7 Bankruptcy, you must pass a means test. A means test determines if your income qualifies you for a Chapter 7 Bankruptcy. With an Elkhorn, WI Chapter 7 Bankruptcy, there is no repayment plan. Most filers can keep their assets, such as their home or vehicle. It is important to note that an Elkhorn, WI Chapter 7 Bankruptcy may also stop a foreclosure, credit lawsuits, and wage garnishments.
What is an Elkhorn, WI Chapter 128 Debt Amortization Plan?
An Elkhorn, WI Chapter 128 Debt Amortization Plan is an alternative to bankruptcy. Chapter 128 can stop wage garnishments, stop accruing interest, and requires no court appearance for the majority of cases. Elkhorn, WI Chapter 128 filers will pay off their debt in three years or less. In order to file a Chapter 128 Debt Amortization Plan, the filer must be a Wisconsin resident and must have a steady source of income. The type of debt that can be included in an Elkhorn, WI Chapter 128 Plan are: credit cards, civil judgments, payday loans, medical bills, collection accounts, and most personal loans.
What Are the Main Differences between an Elkhorn, WI Chapter 7 Bankruptcy and Chapter 128?
1. You must qualify through a means test to file a Chapter 7 Bankruptcy. Chapter 128 does not require a means test.
2. When you file a Chapter 7 Bankruptcy, all unsecured debt must be included in the petition and may be wiped out (discharged). All debts do not have to be included in an Elkhorn, WI Chapter 128 plan.
3. Chapter 7 Bankruptcy eliminates all debt immediately. Chapter 128 is a repayment plan.
4. A Chapter 128 Debt Amortization Plan can be less expensive than an Elkhorn, WI Chapter 7 Bankruptcy.
5. You can only receive a discharge from a Chapter 7 Bankruptcy once every 8 years. With a Chapter 128, you can file after bankruptcy and you can file more than once.
6. No assets or property are ever sold or liquidated during an Elkhorn, WI Chapter 128.
7. A Chapter 128 may be better for your credit score than a Chapter 7 Bankruptcy
8. An Elkhorn, WI Chapter 128 Debt Amortization Plan is a faster process than an Elkhorn, WI Chapter 7 Bankruptcy.
Contact Our Elkhorn, WI Chapter 7 Bankruptcy and Chapter 128 Attorney
There are special circumstances that may apply for each type of bankruptcy and line item listed above. To learn more about which debts can be discharged and what assets you can keep during either an Elkhorn, WI Chapter 7 Bankruptcy or an Elkhorn, WI Chapter 128 Debt Amortization Plan, contact our bankruptcy attorney. Wynn at Law, LLC has bankruptcy offices located in Lake Geneva, Delavan, Muskego, and Salem, Wisconsin. You can reach our Elkhorn, WI Chapter 7 Bankruptcy and Chapter 128 attorney by calling 262-725-0175 or by visiting the contact page on our bankruptcy website.
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*The content and material on this web page is for informational purposes only and does not constitute legal advice.