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Wisconsin Bankruptcy Laws
As in many other states, Wisconsin allows those filing for Chapter 7 bankruptcy to choose either from the federally exempted items, or from the Wisconsin state specific exemption list, which contains the following:
Homestead |
Up to $40,000 |
Wages |
Up to 75% earned but unpaid |
Personal Property |
Household goods including animals and firearms to $5,000, motor vehicles to $1,200, personal injury recoveries to $25,000, wrongful death recoveries |
Pensions |
Public and municipal employees, fire fighters or police officers(in cities of over 100,000) |
Public Benefits |
Crime victims, worker’s compensation, unemployment, veteran’s, social security, disabled general assistance |
Tools of the Trade |
Any single trade equipment items up to $7,500. |
Insurance |
Federal disability, life to $5,000(if beneficiary is a married woman), Non-matured life insurance to $4,000 |
Miscellaneous |
Burial provisions, health aids, child support and alimony |
Even before filing a petition to the bankruptcy court, those who are attempting Chapter 7 bankruptcy must pass a “means test” to be eligible for it. If passed an inventory of their possessions must be taken. A precise inventory is vital to avoid possible bankruptcy fraud. Filed petitions are usually answered within 20 to 40 days, and if successful, creditors will be contacted to schedule the “341 meeting” with a bankruptcy trustee and all creditors. For those filing for Chapter 13 bankruptcy this is the most important step, because it is when the actual repayment plan is designed.
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