Paying for an attorney may be concerning when your debt already feels unmanageable; however, in virtually all cases, the cost of declaring bankruptcy is far less than the total expense of bills, late fees, and interest that you would pay without bankruptcy.

The cost of filing for bankruptcy will depend on the details of your situation. There are three main categories of expenses to consider when evaluating bankruptcy:

• Bankruptcy Court Filing Fees
• Bankruptcy Attorney Fees
• Required Credit Counseling Courses

In this article, Wynn at Law, LLC will explain the costs of filing for bankruptcy in Wisconsin.

Breakdown of Wisconsin Bankruptcy Costs

There are two common types (also known as chapters) of bankruptcy for individuals in Wisconsin: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. The type of bankruptcy significantly impacts bankruptcy fees and costs. 

Note: the cost of declaring bankruptcy is the same for married couples as it is for single individuals when you file with Wynn at Law, LLC.

Bankruptcy Attorney’s Fees

Attorney’s fees are the largest variable cost for declaring bankruptcy. While it is possible to file for bankruptcy without an attorney, it is typically an expensive mistake. Individuals representing themselves (called pro se) have a significantly lower bankruptcy success rate than individuals represented by an attorney.

To protect consumers from excessive fees, bankruptcy judges can review the attorney’s fees and approve or deny the fees as appropriate for a particular case. Chapter 13 Bankruptcy attorney’s fees tend to be more expensive than attorney’s fees for a Chapter 7 Bankruptcy case.

Cost of Chapter 7 Bankruptcy Attorney

Chapter 7 Bankruptcy is the most popular type of bankruptcy for Wisconsin residents. This type of bankruptcy provides the opportunity to eliminate credit card debt, personal loans, medical bills, and other unsecured debts.

Factors that can impact attorney’s fees include:

• Business Ownership
• Number of Creditors
• Asset Ownership and the Need for Asset Protection Planning
• Foreclosure, Repossession, Eviction, and Other Legal Actions
• Non-Dischargeable Debts (Student Loans, Child Support, Alimony, or Past-Due Taxes)

Learn more about Chapter 7 Bankruptcy

Cost of Chapter 13 Bankruptcy Attorney

Chapter 13 Bankruptcy consolidates, reorganizes, and restructures unsecured debt using a repayment plan. Typically, Chapter 13 repayment plans require the restructured debt to be repaid over 3-5 years. This type of bankruptcy is available to individuals and couples that intend to use future disposable income to pay some or all debt. 

Chapter 13 Bankruptcy attorney’s fees can often be included in the bankruptcy repayment plan or be scheduled on a payment plan with the attorney.

Learn more about Chapter 13 Bankruptcy

Schedule a No-Cost Bankruptcy Consultation

Don’t let the cost of an attorney keep you from pursuing bankruptcy. Wynn at Law, LLC understands that bankruptcy clients are in financial distress. Schedule a FREE consultation with Wynn at Law, LLC to discuss your financial situation. Our attorneys will help you determine if bankruptcy is the right option for you and Wynn at Law, LLC offers flexible payment plans. The sooner that you contact a bankruptcy attorney, the more money you can save.

Bankruptcy Filing Fee

Filing a petition for bankruptcy typically requires a court filing fee. The bankruptcy filing fee is standardized across the United States.

The Chapter 7 Bankruptcy filing fee is $335.

The Chapter 13 Bankruptcy filing fee is $310.

If an individual’s income is below 150% of the Wisconsin poverty line, it is possible to get a waiver that eliminates the filing fee for Chapter 7 Bankruptcy. Fee waivers are rare for Chapter 13 Bankruptcy cases. The bankruptcy court may allow you to pay the filing fee using installment payments over a series of weeks or months depending on your income as well.

Required Courses

To successfully file for bankruptcy, individuals must complete two educational courses. The first required course is a credit counseling session, which must be completed before filing. The second mandatory course is a debtor education course, which must be completed before the debts are discharged. Both of these courses can be completed online and are not excessively time-consuming.

Generally, these courses cost less than $50 each. These courses must be taken through an approved provider, and the course provider determines the price.

Other Bankruptcy Fees

There are a few additional costs and fees that may arise when filing for bankruptcy. Additional costs are typically minimal and can occur due to document printing and commuting/travel. Miscellaneous fees can occur if additional motions need to be submitted or files need to be retrieved from the courts.  

An experienced bankruptcy attorney can minimize the risk of additional fees by carefully reviewing the bankruptcy case before filing.

How to Reduce Bankruptcy Costs

There are a few options to reduce out-of-pocket expenses for individuals concerned about the fees associated with filing for bankruptcy.

Some individuals may also qualify for free legal advice through Legal Action of Wisconsin (Racine). This legal aid office helps qualifying Walworth County and Kenosha County residents to reduce the overall cost of bankruptcy, and their lawyers can represent cases pro-bono (for free).

Unemployed, low-wage earners, disabled, and elderly individuals may be eligible for fee reductions or waivers.

It is possible to file for bankruptcy without an attorney. However, it is essential to remember bankruptcy attorneys have a significantly higher success rate for discharging debts.

Is Bankruptcy Worth It?

Bankruptcy is an option to consider for excessive debt from medical bills, utility bills, payday loans, vehicle repossession debt, personal loans and credit cards. Depending on the type of bankruptcy, individuals can eliminate all or most debt.

If you are facing financial difficulty, meeting with a bankruptcy lawyer can help you evaluate all of your debt relief options. Wynn at Law, LLC offers a FREE bankruptcy consultation. During this consultation, our attorneys will be able to estimate the debt that can be eliminated and will provide a personalized quote for the cost to file for bankruptcy. Contact Wynn at Law, LLC at 262-725-0175 to schedule your consultation at one of our three Southeastern Wisconsin locations.

• Lake Geneva Law Office
• Delavan Law Office
• Salem Lakes Law Office

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Although you are allowed to file for bankruptcy yourself, it is often an expensive mistake. In this article, you will learn ten reasons why you should hire a bankruptcy lawyer.

10 Benefits of Hiring a Bankruptcy Lawyer

1) Hiring a lawyer increases your chances of successfully eliminating debt. An annual report published by the United States Bankruptcy Court for the Central District of California shows that individuals representing themselves (pro se) have a significantly lower bankruptcy success rate than individuals represented by a lawyer. In the case of Chapter 13 Bankruptcy, debtors represented by a lawyer are more than ten times more likely to reach a successful outcome than individuals representing themselves.

2) A lawyer can help you decide if bankruptcy is the right option for you. It is essential to evaluate and understand all of the options available to you when you are facing overwhelming debt. While it may seem like bankruptcy is your only choice, a lawyer may have a better solution for managing your debt without declaring bankruptcy.

3) You don’t know which bankruptcy option is best for your situation. An experienced bankruptcy lawyer will review your financial situation and explain your bankruptcy options. In Wisconsin, the two most common types of personal bankruptcy are a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy. Wynn at Law, LLC’s lawyers can help you identify which type best fits your current situation and guide you through the entire process. 

4) A bankruptcy lawyer will help eliminate all eligible debts. A bankruptcy lawyer will know which debts can be discharged and the best type of bankruptcy to use to discharge your debt. For example, a lawyer can identify and eliminate debts beyond the statute of limitations for collections. You will also save money by fully discharging your obligations and not having lingering debts after completing your bankruptcy. 

5) Experience is crucial to success. Do you know the U.S. Bankruptcy Code? Do you know Wisconsin District Courts’ bankruptcy laws? Do you know what property is exempt from bankruptcy? Filing for bankruptcy requires knowledge of the federal code and local case law. An experienced bankruptcy lawyer has worked on hundreds of cases and understands the intricate details of the process. A bankruptcy lawyer will be familiar with current laws, courtroom procedures, the bankruptcy filing process, and filing timeframes.

6) Hiring a lawyer saves you time. Hiring a lawyer saves you countless hours, as you no longer have to spend your time researching and reviewing bankruptcy information. In some cases, a lawyer can identify shortcuts and smooth out the scheduling process. Wynn at Law, LLC’s bankruptcy lawyers will guide you through the complicated procedures and keep you informed at every stage. 

7) You don’t have to handle the paperwork. Filing for bankruptcy requires accurate, detailed, and timely paperwork. It is crucial to have precise information and sufficient supporting documentation. While much of the information will come from you, a lawyer can help you complete the paperwork and provide legal advice on your disclosures, valuing assets, income, and expenses.

8) Lawyers have an established relationship with the bankruptcy court, judges, and trustees. A bankruptcy lawyer has gone through this before; they are familiar with bankruptcy courtroom etiquette. Lawyers have already built relationships with the people involved in the process, making communication easier for you. When the trustee asks for additional information or details, your bankruptcy lawyer will be prepared.

9) You get protection from harassment by creditors and collection agencies. Once you hire a bankruptcy lawyer, harassing phone calls from creditors will stop. Once a lawyer represents you, you can inform creditors or debt collectors and force their phone calls and letters to go through your lawyer instead. After you officially file, an automatic stay will be granted, which legally extends your harassment relief.

10) Lawyers offer you peace of mind and protection from uncertainty. Peace of mind goes a long way. You won’t have to worry about mistakes, losing your assets, or preparing for a court appearance. Your bankruptcy lawyer will advise you on what will happen ahead of time, complete your paperwork correctly, and sit by your side in creditor meetings or court. It is your lawyer’s responsibility to fight for the best outcome for you and protect your rights.

Do I Need a Bankruptcy Lawyer?

The logistics of bankruptcy paperwork, credit reporting bureaucracy, and collection agencies’ tactics can be challenging to manage without a lawyer. While you do not need a lawyer to file for bankruptcy – it is strongly recommended. 

Are you still considering filing without an attorney, even after reviewing the list of reasons you should hire a bankruptcy lawyer? If so, you should understand some of the risks of representing yourself (pro se representation) when filing for bankruptcy.

The Risks of Filing Bankruptcy Without a Bankruptcy Lawyer

One little mistake could cost you everything. If you file incorrectly or the filing is incomplete, the bankruptcy judge could throw out your case. If that happens, you may not be able to refile for any type of bankruptcy in the near future or if you can refile, you may lose protection from creditors taking action against you. Incorrectly listing assets could cost you not only your debt being discharged, but you could lose the possessions you sought to protect. Bankruptcy lawyers know how to protect your assets and successfully lead you through the process.

Mistakes could mean criminal charges for fraud or perjury. Committing fraud in a bankruptcy case can land you in jail. You cannot hide assets or income from the bankruptcy trustee or judge (even those that you haven’t received yet). Do you know the law well enough to avoid this serious situation? Did you sign over a vehicle, deed property, gift money, or other assets to a friend or relative? A bankruptcy lawyer will help you file your petition and truthfully list your assets in a way that protects you from criminal charges. 

You may end up paying more of your debt. When communications between the bankruptcy trustee and your creditors occur, can you respond without negatively impacting your bankruptcy discharge? If a creditor files a lawsuit or contests your discharge of debt – how will you respond? A bankruptcy lawyer can protect your interests, effectively communicate with all parties involved, and save you money in negotiating with creditors.

Get a Free Consultation with a Wisconsin Bankruptcy Lawyer

Meeting with a bankruptcy lawyer in the early stages of financial difficulty can allow you to explore all of your debt relief options. If you can’t make regular payments on your existing debt, filing for bankruptcy may be a solution. Wynn at Law, LLC’s lawyers will meet with you to discuss your financial situation and help you determine if bankruptcy is right for you.

Contact Wynn at Law, LLC for a free bankruptcy consultation: 262-725-0175

Wynn at Law, LLC has law offices in Lake Geneva, WI, Delavan, WI, and Salem Lakes, WI. Our lawyers provide legal advice and representation to residents throughout Southeastern Wisconsin. We are a debt relief agency that can help individuals or couples file for bankruptcy relief under the U.S. Bankruptcy Code. Filing for bankruptcy is an intricate legal process. The federal court in the Eastern District of Wisconsin oversees bankruptcy cases for residents of Walworth County, Racine County, and Kenosha County.

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A Chapter 7 bankruptcy filing stays on a FICO record (aka ‘credit score’) for 10 years from the date you file your bankruptcy. It’s seven years from the date of filing for a completed Chapter 13. Either may sound like a very long time. But first and foremost, it beats the bind that led to the filing. The creditor calls (see related article on the Automatic Stay) are a thing of the past. The stack of bills next to your checkbook might be considerably shorter and probably better matches your paycheck.

Credit scores react first

A bankruptcy filing is serious business and should be given serious thought prior to filing. That being said, it does have some potential bright spots as a new beginning.

Hidden among the bad news that your credit score likely will go down upon filing bankruptcy is the fact that your score probably was in bad shape before the filing anyway. And heading for worse. Another silver lining is that many of your debts are gone; therefore, the bankruptcy will make your debt to income ratio much better. In both Chapter 7 and Chapter 13, delinquent accounts before filing remain on your credit report. In Chapter 7 cases, they will stay on the report for seven years. Chapter 13 debts are often paid off according to the bankruptcy payment schedule in three to five years. Since these debts are repaid all or in part, the records will be removed from your credit report sooner than Chapter 7 debts, which aren’t repaid at all.

You can get credit again

It isn’t going to happen overnight, but you will have an opportunity to rebuild credit. More, shall we say ‘aggressive,’ lenders swoop in first with high interest credit card and auto loan offerings right after filing. Resist the temptation, if possible. As you rebuild a steady track record of paying on-time things like mortgage payments, car payments, and student loan payments, better chances to rebuild credit will come. Usually a secured credit card opportunity is going to come your way first.

Once you establish a good payment record and are living within your means, lenders will see you as a decent risk. Why? They know you can’t file another Chapter 7 bankruptcy again for eight years after your previous Chapter 7 filing.

You know your pitfalls

The best outcome in a bankruptcy filing is that you’ve learned from and implemented corrections to previous money errors or have been able to put a horrible life event behind you like a medical emergency or car repossession. You’ll know the consequences of paying late, for example. You also learn to budget. And stick to it.

Image by Andrew Lozovyi, used with permission

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Bankruptcy filing – or the prospect of it – usually puts Wynn at Law LLCclients in full-out panic mode. One of the most alarming, last-ditch, hail-Mary ideas coming from this desperation is to cash out a retirement plan to avoid bankruptcy court. In some cases, people can ‘borrow’ against their company retirement plan, usually a 401(k). This is as dangerous as cashing out to cover the financial struggle.

Don’t. Touch. This. Money.

 
Retirement money is tax-exempt until you touch it. If you touch it too early, you’ll be subject to taxes and penalties. Here’s a primer on a few of those consequences:

A tax specialist or accountant will give you clearer instruction on your particular situation’s consequences. Wynn at Law LLC is concerned about those immediate consequences, and the long-term ones. It’s your retirement income you’re putting in jeopardy. You’re mortgaging your entire future! If you leverage this nest egg to avoid bankruptcy filing today, you may have just kicked the can down the road, facing potential bankruptcy in your retirement years.

In almost every case, your qualified retirement plan is EXEMPT from your bankruptcy filing anyway. You get to keep the plan, your creditors don’t. But this goes back to a message from an earlier Wynn at Law LLC article on honesty: You have to disclose that your own a retirement account. It’s still going to be your retirement nest egg, they can’t touch it, but you can’t hide it.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 Photo by Barbara Reddoch, used with permission.

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The post Spot the five early warning signs for bankruptcy appeared first on Wynn at Law, LLC.

Pre-bankruptcy counseling was put into place in 2005 to potentially steer people out of the courts if a repayment plan would work instead of filing. Counseling is required even if it’s obvious a repayment plan won’t work. Usually, by the time you’ve called Wynn at Law, you’ve already discovered your debts are too high and your income is too low.

The pre- and post-bankruptcy programs don’t shame you into submission. On the contrary, another set of eyes takes an impartial look at your situation in the pre-bankruptcy course. You might learn from your missteps. The second of the two required programs gives you solid financial management practices that will keep you from facing unmanageable debt again. That just makes sense: As much as Wynn at Law values your business, it’s a good thing when we don’t have repeat bankruptcy customers.

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Photo: Sonar. Used with permission.

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