Can I Stop a Citation to Discover Assets By Filing For Bankruptcy?
Posted on May 19, 2014 in Bankruptcy, Exemptions, Illinois, Legal, Wisconsin
Courts in all states have procedures set to allow creditors to get judgments against the debtors who owe them money. Then there are steps to allow those creditors to find out what the debtors owe and let the creditors take anything that is not exempted (or protected).
In Wisconsin, creditors mail an Order for Financial Disclosure form to the debtors and insist on getting the form filled out and returned in about two weeks. If they don’t receive it, they can order the debtor to appear at a hearing in front of a court commissioner. If the debtor skips the meeting, they can be held in contempt and even jailed for not showing and answering!
In Illinois, the process is called a Citation to Discover Assets. It involves the same steps – paperwork and sometimes a hearing where a debtor has to testify about what they owe and what they believe is protected.
This process allows creditors to take what they can and it’s hard to stop or delay. But filing for bankruptcy can put an end to the process. We’ve helped multiple couples and individuals recently in Illinois and Wisconsin by filing bankruptcies to propose eliminating or repaying the debt that caused the citation or financial disclosures. By not going to these hearings, our clients can focus on their businesses or jobs and proceeding through bankruptcy to get a discharge instead of taking time off to show up and submit paperwork they’d have to give to us to prepare their bankruptcies.
Bankruptcy allows creditors to be paid or eliminated in an orderly fashion. Citation hearings and post-judgment paperwork are meant to help judgment creditors cut to the front of the line and take money and property faster than what most people can comfortably pay. Let us talk about using bankruptcy as a way to stop these creditors and put yourself back in control of your debts. Call Lakelaw at 847-249-9100 or 262-694-7300 in Wisconsin to set up a free consultation for a better financial future.