How to File Bankruptcy

This week, we continue our series on frequently asked questions regarding bankruptcy. For this post, we are taking a look at the filing process. Many questions arise during the Walworth County bankruptcy filing process. You’ll find answers to the most common questions below.
Walworth County bankruptcy questions and answers

Frequently Asked Questions Regarding Filing a Walworth County Bankruptcy

Q: What Does an “Automatic Stay” Mean?

A: “Automatic Stay” means that creditors listed in the bankruptcy petition must stop all attempts to collect on the debt. This includes lawsuits, liens, phone calls, mailings, wage garnishments, etc.


Q: Does Filing a Walworth County Bankruptcy Stop Bill Collectors From Calling?

A: Yes. The automatic stay prevents bill collectors from calling you, or any other action that is an attempt to collect on the debt.


Q: How Soon After Filing a Walworth County Bankruptcy Will Creditors Stop Calling?

A: Once your Walworth County bankruptcy petition is filed, the Clerk of Court mails a notice to all the creditors contained in the bankruptcy petition. This could take anywhere from days to a couple weeks. Once the creditor is aware of the bankruptcy filing, they must stop all collection efforts. This means creditors have to stop calling you if you inform them about the bankruptcy petition and give them your case number.


Q: Will Filing a Walworth County Bankruptcy Stop Eviction?

A: “Whether or not the automatic stay is applicable to eviction proceedings depends upon the facts of the case. The following exceptions to the automatic stay are relevant to landlords of residential property: Exception #1: If eviction action was started before the filing of bankruptcy and was due to failure to pay rent. Exception # 2: If the eviction action is due to behavior that endangers the property (such as illegal drug use, etc).” – The United States Bankruptcy Court Eastern District of Wisconsin


Q: What Property Can I Keep After Filing a Walworth County Bankruptcy?

A: In a Chapter 7 Bankruptcy, the debtor can keep all the property which is exempt from the claims of creditors. We suggest you download our free Chapter 7 Bankruptcy Guide to learn more.

Q: Will I Lose My Home or Vehicle If I File a Walworth County Bankruptcy?

A: Most individuals or couples who file a Chapter 7 Bankruptcy get to keep their home and vehicle. However, there are always exceptions. Read more about keeping your vehicle here: Bankruptcy – Will I Lose My Car or Truck? Read more about keeping your home here: Can I Keep My Home If I File Bankruptcy?


Q: Will I Lose Future Income or Property If I File a Walworth County Bankruptcy?

A: “No. Many people believe that they cannot own anything for a long time after filing for bankruptcy. This is not true. A debtor can keep exempt property and anything obtained after filing. The major exception is if the debtor becomes entitled to receive an inheritance, a property settlement, or life insurance benefits within 180 days (6 months) after filing a bankruptcy. That money or property may have to be turned over to the trustee for payment to the creditors.” – The United States Bankruptcy Court Eastern District of Wisconsin


Q: What is Credit Counseling?

A: Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, individual debtors must undergo credit counseling before filing for bankruptcy. In order to receive a bankruptcy discharge, an individual debtor who files for bankruptcy must complete an instructional course in personal financial management after filing for bankruptcy. Wynn at Law, LLC will provide you with specific instructions to complete these necessities. Both courses can be performed online during your free time.


Q: What Is The Effect of a Walworth County Bankruptcy Filing on a Co-Signer?

A: In a Chapter 7 bankruptcy, if someone has co-signed a loan and the other debtor files bankruptcy, the co-signer will be responsible for the debt. The co-signer will not be responsible for the debt if they file for bankruptcy protection as well. If the debtor files a chapter 13 petition and agrees to pay the debt in full with the co-signer, the co-signer cannot be pursued for the debt as long as the debtor remains in Chapter 13 and continues to make payments.


Q: If I’m Married, Can I File a Walworth County Bankruptcy Alone?

A: Yes. Be advised there are many details of filing alone that need to be brought to your attention. Learn more here: “I’m Married. Can I File Bankruptcy Alone?”


Q: Will My Utility Services Be Affected by a Walworth County Bankruptcy?

A: Public utility companies cannot refuse you service or cut off your service if you file bankruptcy. However, they can require a deposit for future service. If you feel you cannot afford the security deposit required, you can seek an Order from the Court to reduce the amount of the deposit.


Q: Will I Have to Go to Court?

A: Usually, a debtor only needs to attend the 341 meeting of creditors which is often not held in a courtroom. Occasionally, a debtor may need to appear in court, but only if a motion has been filed, an adversary action takes place, or if you choose to dispute a debt. You will receive Notice of Hearing if you need to appear in Court.


Q: Do I Need to List All Creditors When Filling a Walworth County Bankruptcy?

A: Yes. Under Bankruptcy Rule 1007(a), you must list ALL creditors. You are not permitted to omit any creditors.


Q: Can I Erase Student Loans by Filing a Walworth County Bankruptcy?

A: “Generally, student loans are not discharged in bankruptcy. You will remain responsible for these debts. Privately funded and government-funded or guaranteed loans are treated the same under the Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005.” – The United States Bankruptcy Court Eastern District of Wisconsin


Schedule a Consultation With Our Walworth County Bankruptcy Attorney

If you have questions regarding a Walworth County bankruptcy, please contact Wynn at Law, LLC. Our Walworth County bankruptcy attorney can answer all your questions during your free, initial consultation. Our Walworth County bankruptcy attorney can be reach by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has bankruptcy offices located in Delavan, Lake Geneva, Muskego, and Salem, Wisconsin.


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*The content and material on this web page is for informational purposes only and does not constitute legal advice.

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