Many people seem to think that if they want to file a Chapter 7 bankruptcy, they will lose their home or their car in the process. This is not true. Unless my clients would like to walk away from their overwhelming mortgage, or if they cannot afford their car loan and would like to surrender to get out of the debt, I can exempt property in the filing of a Chapter 7 which allows people to hold on to their collateral. Sometimes when people come into my office and they are facing Wisconsin bank foreclosures, they would rather just walk away instead of struggling to make the mortgage payments, and in those cases the property can be surrendered through the filing. The main thing to take into consideration whether you are trying to keep your house or a car while filing a Chapter 7 bankruptcy, is that you have to stay current with those payments and that as long as you do, you may keep the collateral.
Bankruptcy courts do not take property from filers that disclose their financial information completely and accurately to the Court. The bankruptcy laws in Wisconsin are designed to help people get their lives back in order and not punish them for falling into a bad situation. Consider researching Wisconsin bankruptcy information on your own to learn about these exemptions as well as other rights that filers have while discharging debt.
