Bankruptcy Myths

While it is true that during a chapter 7 bankruptcy claim a trustee has the authority to liquidate your assets and equally divide it among creditors, it is worth noting that Wisconsin has some of the best 'except' laws. It is important to note that every state has different laws regarding exemption and when filing for bankruptcy in Wisconsin, many of my clients go through the entire bankruptcy process without loosing any of their assets.

If for some reason you are not exempt from asset liquidation, then you may file for chapter 13 bankruptcy to help save your possessions. However at times you may end up loosing some of your assets in the process, but with the help of a qualified attorney you can begin your exemption planning. An attorney you can trust is crucial in the planning process because it can be a tricky endeavor and if not done right you may find yourself in another legal battle being accused of fraud. 

It cannot be argued, your credit score will drop when you file for bankruptcy. Sometimes as drastically as 200 points, but this is not the end and your score will not stay that low for 10+ years. With an experienced attorney on your side you can have the benefit of getting ahead of the impact your credit score may take after filing for bankruptcy. An experience attorney can guide you through different tactics before, during, and after your bankruptcy is filed. I, attorney Sapinski, have discovered a step-by-step credit restoration program that can help you. Many of my clients who have followed my revolutionary program have seen their credit scores escalate back into the 700s within two years of filing bankruptcy.

Debts that don't go away include: gambling, student loans, tax debts, and child support. However, debts are discharged when you file for bankruptcy, but this also comes with some areas you might want to be careful about. If you have secured your loans with a lien you may not want to discharge the debt because then you may loose your assets to that creditor. You will always have the option to continuing paying that loan so that you could keep your assets. In many cases you might get something called a "reaffirmation agreement" regarding your bankruptcy discharge. It is a voluntary document that will exclude that specific creditor from your bankruptcy claim.

In 2005 Congress did reform bankruptcy law which has made it hard to file for Chapter 7 bankruptcy, but a qualified and experienced bankruptcy attorney should be able to easily guide you to the debt relief you need. In addition, many are still eligible for chapter 13 bankruptcy if that becomes the best option in your specific case. However, it is important to note that it is extremely rare to be denied any form of bankruptcy.

This is not true, especially if you follow my credit restoration program. With a qualified and experienced attorney your credit could recover extremely fast. The rule of thumb is interest rates are higher if you were to apply after bankruptcy, typically the longer you wait after bankruptcy to obtain a loan, the lower the rate is likely to be.

Bankruptcy is an extremely private process, as it is a legal matter that will not appear in the Wisconsin Circuit Court system (WCCA). This is because bankruptcy does not fall under one of the qualifying markers of state criminal, or civil, cases for it to be public record. Bankruptcy is filed with federal courts that requires membership to access. Many who have access to the database, such as news outlets, do not share the bankruptcy reports unless the individual filing is a public figure.