You can file your bankruptcy case in Wisconsin even if you are relatively new to the State.  Suppose you move to Wisconsin after having spent the last several years elsewhere.  First, welcome to a state with wonderful people and a lot of reasons to stay.   But you might be moving to Wisconsin and be concerned about filing a bankruptcy.  This is where an experienced bankruptcy attorney can assist you.

You have some flexibility, just like the big corporations which file their cases in New York and Delaware.  Once you’ve lived in Wisconsin a little more than 3 months, you can file your case here.  Or you could file your case in Wisconsin right away if most of your property is now located in Wisconsin.

If you just moved to Wisconsin, you can’t use  Wisconsin’s exemption law to figure out what property you can keep.  Chances are, you’re going to use your old state’s rules.  The key factor is where you lived in the 180 day period before the last two years started.  If, like me, you moved recently from Illinois, spending the bulk of that 180 period in the Land of Lincoln, you’d be using the Illinois rules.  Sometimes, however, you may have to use the federal exemptions.  Make sure your lawyer asks you the right questions so that you can get the right answers.

For financial relief in Kenosha, Racine, Walworth or Milwaukee, call Lakelaw today at 262.694.7300 and ask for Attorney Ryan Blay or David Leibowitz. 

This post was written by Ryan Blay, Supervising Attorney in Lakelaw’s Kenosha office.

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You can keep exempt property in a chapter 7 bankruptcy case.  Thanks to a new Wisconsin law going into effect on December 16^th, you’ll be able to keep more of your property if you have to file for bankruptcy.

Under 2009 Wisconsin Act 90:

• The homestead exemption is raised to $75,000 and each individual in a marriage may use this $75,000 exemption.  Prior to this change, the exemption was limited to $40,000. 
• Equipment, inventory, farm products, and professional books used in the business of a debtor or a debtor’s dependant is doubled from $7,500 to $15,000.
• Household goods and furnishings are now protected up to $12,000, up from $5,000.  This includes wearing apparel, keepsakes, jewelry, appliances, books, musical instruments, firearms, sporting goods, animals, and other tangible personal property.
• Protection in the equity of a motor vehicle rises from $1,200 to $4,000 in value.  Moreover, any unused portion of the Household goods exemption can be applied to the car protection.  
• Bank accounts can now be protected up to $5,000 instead of $1,000.  These are only for personal use and not business. 
• Exemptions for personal injury claims double from $25,000 to $50,000. 

In Wisconsin, you can select either state or federal exemptions.  Sometimes, federal exemptions are better for you.  So always consult an attorney before selecting the exemptions for your bankruptcy petition and schedules.  What you protect from your possessions and estate can mean the difference between peace of mind and a trustee demanding that you turn over the things you need for a normal life after bankruptcy.  Click here to go to our Virtual Law Library

For financial relief in Kenosha, Racine, Walworth or Milwaukee, call Lakelaw today at 262.694.7300 and ask for Attorney Ryan Blay or David Leibowitz. 

This post was written by Ryan Blay, Supervising Attorney in Lakelaw’s Kenosha office.

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The Servicemembers Civil Relief Act protects our soldiers, sailors and airmen.  Lakelaw supports our troops.  We offer our servicemen and servicewomen bankruptcy and other legal services at substantial discounts.  We always have and always will.

Recently, Lakelaw heard from an Army medic in Afghanistan who was threatened with foreclosure.  I told him not to worry so much.  The Servicemembers Civil Relief Act gives a lot of protection to our active duty servicemen and servicewomen.

Here are some of the most important features:

1. Nobody can get a judgment againt you by default – just because you didn’t answer a complaint.  Instead, the court has to appoint an attorney to act on your behalf
2. The court has to stop proceedings against you for at least 90 days while your attorney determines if you have any defenses to the claim
3. Interest on any debts against you is limited to 6% while you are on active duty.  Any difference between 6% and the contract interest can never be collected.
4. You can’t be evicted from your residence (rented for less than $2400/month, adjusted for inflation) while you are on active duty for at least 90 days after the eviction order.  

Service connected life insurance is increased while you are on active duty.  There are other provisions which are all more fully explained in this link:  Servicemembers Civil Relief Act

If you are on active duty and came anywhere from the Chicago metropolitan area or Southeast Wisconsin – call on Lakelaw.  We support our troops.  We’ve got your back.

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If you file a bankruptcy case, you must list all of your assets.  This includes lawsuits for personal injury claims.  It also includes personal injury claims even if you have not yet filed a lawsuit.  

Failure to list all assets in a bankruptcy case could lead to loss of your discharge in bankruptcy or even criminal prosecution.

You can exempt a portion of your claim – up to $15,000 in Illinois and up to $25,000 in Wisconsin.  

Many people who have been involved in automobile accidents or medical malpractice claims find themselves facing bankruptcy during the long delays prior to trial or settlement.  Unfortunately, their personal injury attorneys frequently have no experience with bankruptcy.  And it would be unethical for them to help their clients out financially while waiting for trial or settlement.  Even worse are the companies who try to get the victim to sell a portion of his personal injury claim for a big discount in order to pay living expenses.

So victims of automobile accidents or other major tort claims may have to file a bankruptcy case before they get their settlement.  

Tell your bankruptcy lawyer about these claims.  We at Lakelaw will ask you.  

If you file a bankruptcy case, you won’t “lose” your rights.  If you have a smaller claim, it will be exempt from creditors.  If you have a larger claim, you will keep the first $15,000 in Illinois or  the first $25,000 in Wisconsin.  The next dollars will go to pay your creditors until they are paid in full.  And if you were unfortunate to have suffered a significant claim, you will get to keep the balance.  Sometimes, a personal injury claim settlement can be structured so that a significant part is allocated to your wife or family.  If these people are not filing a bankruptcy case, this may be a legitimate way to protect your claim from creditors.

We will work with your personal injury lawyer to maximize the amount of money you keep from your personal injury settlement even though you are filing a bankruptcy case.

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