We’ve written a series of blog posts answering common questions regarding bankruptcy in Wisconsin, and how it can impact your finances. Call (262) 827-0375

erasing debt with a green eraser

Bankruptcy and Debt Consolidation in Wisconsin

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Bankruptcy can have long-term effects on the financial prospects of individuals and families in our area. In many cases, working with a knowledgeable law firm to negotiate debt consolidation in Wisconsin can allow consumers to manage their debts more effectively.

Debt is a huge problem in our country. According to credit bureau Experian, consumer debt soared to $13 trillion in the last quarter of 2018. This represents a serious burden on residents of Wisconsin as well as those throughout the United States. While the Milwaukee Journal Sentinel reported in January 2019 that bankruptcy filings declined for the eighth consecutive year in 2018, farm bankruptcies are on the rise. About 49 farm families filed for bankruptcy in Wisconsin in 2018. That figure is more than double the number of farm bankruptcies in 2009. This increase in bankruptcies corresponds with a recent U.S. Department of Agriculture report that U.S. farm debt amounted to more than $309 million in 2018.

The Basics of Bankruptcy

All bankruptcy cases must be filed in federal courts and are governed by the U.S. Bankruptcy Code. Depending on where you live in Wisconsin, these cases go through the U.S. Bankruptcy Court of the Eastern District or the Western District of Wisconsin. Individuals can file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy allows for the discharge of debts while paying creditors through the sale of assets held by the debtor. For those who have some ability to repay their creditors, Chapter 13 allows the retention of most property while allowing more time to make payments.

Recent Changes to Federal Law

One case that established an important precedent for future bankruptcy cases was Lamar, Archer & Cofrin, LLP v. Appling, which was decided by the U.S. Supreme Court on June 4, 2018. The high court found that a false statement by a debtor about a single asset could make a debt nondischargeable. This is only true, however, if the false statement was made in writing.

Rule 3002(a) of the U.S. Bankruptcy Code was amended in 2017 to require secured creditors to file a proof of claim with the court before their claims can be allowed. A recent adjustment to Rule 3015 makes the determination of the amount and the priority of secured debts a binding determination. Finally, means testing will be used to determine whether debtors are eligible to file for Chapter 7 bankruptcy or whether they will be required to file for Chapter 13 bankruptcy plans instead.

Avoiding Bankruptcy

A Wisconsin legal team that specializes in Chapter 7 and Chapter 13 bankruptcy proceedings and debt consolidation can act as a partner in managing debts and reaching settlements with creditors. This can reduce the need for bankruptcy in some cases.

If you need help with managing debt consolidation in Wisconsin, Burr Law Office can provide you with practical solutions that suit your needs. We can negotiate with bill collectors and creditors to help you even the playing field and to achieve the best results for your situation. We can help you make the best possible decisions for yourself, your family and your future. Call us today at (262) 827-0375 to schedule a free bankruptcy evaluation. At Burr Law Office, we are here to help.

Gas Meter Utility Shutoff

Utility Shutoffs: Learning From Wisconsin Bankruptcy

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It’s easy to take certain things for granted, especially when you’re preoccupied with your fight to stay ahead of debt. If you’re like many people, you might be completely unprepared for the harsher realities of life — like when your lights or heat get turned off.

Nobody should find themselves forced to go without life’s necessities, but the citizens of Wisconsin often end up in precisely such situations. Fortunately, you can file for protection, and with the right legal assistance, getting utilities after bankruptcy should be no sweat.

Bankruptcy’s Utility Advantages

Dealing with creditors often gets messy, and utilities are no exception. When the power company decides that it’s going to turn off your supply due to your nonpayment of bills, it can back you into a corner.

Filing for bankruptcy expands your options. By giving you an automatic stay that halts collections, it lets you make vital decisions without quite as much weight on your shoulders. It also offers other benefits, such as ensuring that your creditors have to go through official channels to get in touch with you — It’s much easier to negotiate with the help of a lawyer.

The protections that you receive by petitioning the court for bankruptcy don’t just exist in name. For instance, the power company is legally prohibited from turning off your electricity because you filed. They also have to give you more options for discharging what you already owe.

How Might Your Wisconsin Bankruptcy Play Out?

As countless debtors have discovered firsthand, bankruptcy cases have become regular features in the Wisconsin legal landscape. The good news is that these proceedings may shed some light on what to expect when filing and dealing with utility creditors.

For instance, the notorious Shopko bankruptcy case exemplifies the kind of back and forth that some filers face. In late May 2019, a judge threw out the company’s proposed plan to pay its debt. This development goes to show that even though bankruptcy is designed to protect the filing party, it still has to satisfy the needs of everyone else involved, including the creditors.

In all likelihood, your case will be more straightforward, but it ultimately depends on your legal team. For instance, getting utilities after bankruptcy might be harder if you fail to prove that your income falls within a range that qualifies you as a consumer experiencing a hardship situation that’s worthy of relief. Planning an argument and gathering the evidence to portray yourself in the right light is crucial to moving your case forward.

Bankruptcy may be a good option for anyone struggling to keep their lights or power on in Wisconsin. If you want to file successfully, however, you’ll need to toe the line — From meeting the filing deadlines to attending the required hearings, seeking bankruptcy takes work and a dedicated legal team.

Although getting utilities after bankruptcy is indeed possible, your experience depends on whether you can build the right legal foundation. Improve your filing odds by chatting with a member of Burr Law Office. Get a free bankruptcy evaluation, call (262) 827-0375 today.

Chapter 13 bankruptcy filing form

Learning Your Way Around Chapter 13 Bankruptcy

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Having debt problems isn’t a life sentence. Unfortunately, far too many people lack the knowledge needed to extract themselves from overwhelming liabilities – It’s easy to feel lost in a labyrinth of bills.

Could seeking court-ordered financial protection help you? Here’s why so many consumers with debt problems pursue Chapter 13 bankruptcy in Milwaukee and Waukesha.

The Realities of Debt and Bankruptcy

Why do people seek bankruptcy to lift themselves out of debt? Although everyone has a unique story, there’s a common factor: Filing offers a significant debt-resolution advantage.

Receiving Chapter 13 bankruptcy protection means that the court has granted you a second chance. Instead of facing bills that you can’t settle and wondering what comes next, you can take advantage of various consumer rights, such as:

  • An automatic halt to ongoing debt collection activities,
  • Free credit counseling from government-approved experts, and
  • Help negotiating repayment plans with your creditors.

Chapter 13 isn’t there to erase bills or collection accounts as if they had never existed. Instead, it helps debtors come to terms with debt by devising a sound repayment plan. This forward-thinking option could be an ideal solution for those who want to continue their lives as normally as possible.

Chapter 13 Bankruptcy in Wisconsin

Who files for bankruptcy? Contrary to popular belief, it’s not only for people who have trouble managing their finances. This lifeline also helps those who thought they had everything under control – such as the Wisconsin farmers who filed as a reaction to losses they incurred during the US-China trade war.

Many of the bankruptcy cases you hear about in the news come packed with sensational details, such as ridiculously wealthy individuals or vanishing retailers. At its heart, however, this process is for regular people. After all, bankruptcy is written into the Constitution to help the nation’s citizens. If you build a strong case demonstrating that you’re worthy of relief, then it’s in society’s best interest for you to get the aid you need.

How to Get Informed on Whether to File for Bankruptcy

It’s not always clear when to seek Chapter 13 bankruptcy in Milwaukee and Waukesha. For instance, many people want to avoid court. Others feel torn between filing and trying to get things under control on their own.

Most debt problems only worsen with time, and you can still work to pay off your obligations while you file. Waiting to get started, however, may make it harder to deal with the whole issue cleanly.

Don’t let things pile up until they demand drastic measures. Reach out to a legal expert – Knowing how filing works could be vital to handling your debt. Call (262) 827-0375 today to find out more.

Helping Milwaukee & Waukesha Consumers Use Chapter 7 Bankruptcy

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It’s time to admit it. You’ve been unable to keep up with your debts, and they’re not magically going away. As the bills mounted, you knew you needed to act, but it wasn’t clear where to turn. Now that you’ve sunk into more debt than you can handle, however, you deserve a lifeline.

Fortunately, you’re not alone: The law may be on your side, and so are the attorneys at Burr Law Office. We can help you envision a brighter financial outlook by filing for Chapter 7 bankruptcy in Milwaukee and Waukesha.

Why File for Chapter 7 Bankruptcy?

Chapter 7 bankruptcy takes its name from the section of the U.S. Bankruptcy Code that describes its rules. Although learning the law from end to end is a huge challenge, consumers can heighten their knowledge by starting with the basics:

  • Chapter 7 bankruptcies are founded on the act of liquidation — This is when your property gets sold to pay off as much of your debt as possible and get the creditors to go away for good.
  • Chapter 7 filings let you keep exempt property, such as the basic items you need to take care of your family, bank deposits up to $5,000, veterans’ benefits, unemployment compensation and professional tools.
  • Filing can help you erase many kinds of debts and halt various collection activities. It may be the right choice if you’re struggling with healthcare bills, overdue credit card fees or even court-ordered wage garnishments.
  • Although the rules require you to go through credit counseling, complete financial management classes, attend a trustee meeting and submit court fees, filing is relatively inexpensive — Most people pay less than $400 for lasting financial peace of mind.

Taking Advantage of Chapter 7 Bankruptcy in Milwaukee and Waukesha

Filing for Chapter 7 protects you by placing an automatic stay on collection activities — at least until your case has gone through the court. What’s the secret to making the most of such benefits in the short time allotted to you? It’s all about planning things thoroughly with an experienced legal advisor.

Although U.S. federal law trumps all else in determining how bankruptcy operates, Wisconsin imposes some of its own standards. For instance, your credit counseling course must be led by a state-approved provider. You’ll also have to pass a means test proving that your family income falls below the median for Wisconsin after subtracting certain approved expenses.

Being prepared is critical because the types of debts you owe might make it imperative to stick to an aggressive case schedule. Advanced planning also improves your odds of receiving permanent protection instead of just the temporary stay — If you can build a case that effectively demonstrates your hardship or lack of financial means, then the bankruptcy court is more likely to look on you favorably.

Put Your Chapter 7 Bankruptcy on Firm Ground

Get in touch with a Burr Law Office attorney. With decades of firsthand experience advocating for clients and working directly with Wisconsin’s neediest families, we’re proud to help you master the art of effective, legal debt relief. Schedule a free consultation now by calling (262) 827-0375

How to Stop Wage Garnishment Immediately in Milwaukee

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What might your debt problems mean for your future? For most people, owing money is nothing new, but things can get far worse than simply having to deal with annoying creditors. You might soon discover that wage garnishment makes it harder than ever to get back to a healthy financial state.

Want to learn how to stop wage garnishment immediately? Here’s what to know about dealing with the system the right way.

Wage Garnishment Explained

Wage garnishment is when a court awards a creditor the right to take money directly from your paycheck. For instance, if you fall behind on your home loan, the bank might seek a garnishment order — Instead of paying you your full paycheck amount, your employer will have to withhold more than normal to resolve your debt.

Wage Garnishment Rules

Wage garnishment can be a tricky topic. Although there are limitations to when creditors can pursue orders, most are willing to jump the hurdles if it means they’re more likely to get their money. Some creditors, such as government entities, education lenders and child support recipients, don’t even have to get court judgments to garnish your income.

Wisconsin maintains some extra protections for debtors who find themselves in certain situations. For instance, if you took out a payday loan, then the lender can’t garnish your wages to get the money back. State law also includes exemptions for individuals and families who fall below predetermined poverty limits, and judges may make further allowances for debtors who can prove they have special circumstances or hardships.

How to Stop Wage Garnishment Immediately

What about the majority of Milwaukee debtors who don’t qualify for wage garnishment relief or exemptions? In the legal community, filing for bankruptcy is often viewed as the most viable solution.

Contrary to popular belief, bankruptcy doesn’t simply mean that you’re out of money. Instead, it’s a form of temporary legal status that carries unique rights designed to prevent people who can’t pay their debts from facing dire circumstances. One of these benefits is the right to an automatic stay.

An automatic stay is a court-ordered halt, or injunction, on debt collection actions. Most creditors can’t pursue garnishments while an injunction is in effect, and a hold lasts until your bankruptcy case gets resolved. In other words, you’ll have extra time to formulate and enact a plan.

Not all automatic stays are equivalent. For instance, Chapter 7 injunctions don’t affect wage garnishments related to child support or alimony. Although you can gain temporary relief from these obligations by filing for Chapter 13 bankruptcy, you’ll still have to come up with an agreeable plan for repaying those debts over the next 3 to 5 years.

Is Bankruptcy the Answer to Your Wage Garnishment Issues?

Filing for bankruptcy may be your best option when you want to stop a wage garnishment order immediately and recover from debt. It’s essential, however, to leverage this powerful tool correctly.

Talk to an experienced, reputable lawyer to ensure you make the right choices for a debt-free future. Get in touch to learn why so many families in Milwaukee, Waukesha, and the rest of Wisconsin entrust their financial well-being to Burr Law Office. Call (262) 827-0375 today.

How do you get a car back after repossession

Car Repossession: Getting Your Car Back

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Having your car repossessed can throw everything into turmoil. When you can’t drive, it’s harder to earn income, care for your family and obtain the necessities you need to function. Even worse, you might feel like you have no other option but to sit there and take it. Repo agencies don’t mess around, and fighting back can get you into more trouble.

How do you get a car back after repossession in Wisconsin? Here’s why chatting with a legal professional about Chapter 13 bankruptcy could help and what to expect next.

Repo Basics

Repossession is when a bank, lender or the owner of your leased or borrowed item takes action to recover their property. For instance, imagine that you put your car up as collateral to get approved for a mortgage. If you missed too many payments, then your loan servicer might repossess the vehicle.

One of the critical distinctions to remember about repossession is that it puts the creditor in control — A repo agent can recover your vehicle without getting permission from a judge or having to file a lawsuit. As long as you defaulted, or failed to fulfill your obligations under an existing contract, the owner has every right to initiate a repossession.

Navigating Repossession Law

Wisconsin and other states have a few laws in place to prevent property owners from abusing the rules. Consumer protection guidelines state that parties who want to repossess vehicles need to jump through some hoops first, such as sending notifications beforehand. These laws are easy to comply with, however, so you may find them to be poor defenses against repo actions.

How do you get a car back after repossession? There are two primary options, but they may not work for everyone:

  • You can reinstate your contract by repaying everything you owe, but you’ll also have to cover the costs the creditor incurred to repo the vehicle.
  • You can redeem your contract, but you’ll have to repay the entire balance.

Reinstatement and redemption cost significant amounts of money. They may be impractical for the vast majority of Wisconsinites who couldn’t pay their loans or leases in the first place.

The Benefits of Proactively Filing for Bankruptcy

Fortunately, reinstatement and redemption aren’t your only choices. You can also seek bankruptcy protection.

When you pursue bankruptcy, you receive something called an automatic stay. This type of protection goes into effect the instant you file, and it stops creditors from taking any action to recover their property — including repossession. Although it only lasts until the court has resolved your case, it gives you the chance to chart a better course forward. If the repossession already happened, a bankruptcy judge can reverse it, and you’ll just have to pay the repo cost.

Which kind of bankruptcy is best for avoiding or halting repo actions?

Most consumers in this situation file for Chapter 13 protection. Unlike Chapter 7, which lets the court sell off your non-essential properties, Chapter 13 grants you the chance to work with your creditors. By coming to an agreement that everyone can live with, you put yourself on a less stressful financial footing.

Are you fighting a vehicle repossession in Milwaukee or Waukesha county?

Waiting around isn’t the best choice. Talk to a bankruptcy lawyer at Burr Law Office LLC to deal with your debt the smart way. Call (262) 827-0375 today.

bankruptcy and utility bills

Bankruptcy and Utility Bills: The Secret to Avoiding a Shutoff?

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When you can’t access the basic things you need to survive, everything gets harder. Losing power is no exception, and when your utilities get shut off due to nonpayment, bouncing back may seem like an impossible trial.

If you live in Wisconsin, you have certain rights when your gas or electric service is about to be discontinued. While many people are familiar with the laws designed to prevent utilities from putting consumers through life-threatening situations, you may not realize that your ability to fight back goes even further.

What do bankruptcy and utility bills have to do with each other? Here’s how filing might make life easier and what to do next.

Understanding Your Legal Status and Rights

Wisconsin law imposes a moratorium on certain utility shutoffs during the coldest part of the year. From Nov. 1 to April 15, the state’s gas and electric providers aren’t allowed to disconnect people for things like having fallen behind on their bills. (Date is wrong on website)

Ideally, this law would protect all Wisconsin residents, but as with so many regulations, there are loopholes. For instance, the utility company doesn’t have to reconnect your power if it got turned off before the moratorium period began. This means that you’ll find yourself in a bind if a sudden cold snap catches you off guard.

Other options designed to assist you in tough times may not be as helpful as they seem. For instance, although the Wisconsin Home Energy Assistance Program offers emergency services, such as fuel aid and co-payment plans, these programs are limited. Due to the number of applicants, it may take time to get the ball rolling. Your income has to be at or below 60 percent of the median level for the state, and the program is only designed to pay for a portion of your heating. You might easily find yourself ineligible if you experienced sudden debt, such as after a medical emergency.

Bankruptcy May Be a Better Choice

When aid programs and consumer protection laws fail, where can you turn? In reality, bankruptcy and utility bills aren’t totally unrelated — Taking your case to court could keep your family and household safe in the face of extreme weather conditions.

Filing for bankruptcy does a few things. In addition to letting the court know that your financial situation has gotten out of control, it gives you instant protection. This automatic stay is a pause that lasts while your case is working through the system, and it temporarily stops creditors, utility companies and other parties from taking further action against you in pursuit of the money you owe them.

Taking this route also gives you more leeway to make good on your overdue bills. Your utility company will forward you a letter requesting a deposit about 20 days after you file, and if you pay it, life will continue as usual regardless of whether the court decides to award you bankruptcy protection. What’s more, you’ll get the deposit back — plus interest — if you keep paying on time during the next year. If you don’t pay the deposit, however, you’ll lose power or gas.

Exercise All of Your Options

While 20 days might not seem like much, the extra time can be a massive help. If you file with the help of a lawyer, you also increase your chances of winning protection, which will erase your previous debts and make it easier to get back on top of life. To find out more about dealing with this kind of emergency, Call (262) 827-0375 to get in touch with a Burr Law Office specialist.

Woman burdened with tax debt

Can You File Bankruptcy for Taxes in Wisconsin?

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Bankruptcy protection is a handy answer to many people’s money woes, but the law has its limits. If you’ve got tax debts that you’d like to resolve by filing for bankruptcy, you need to understand the essentials.

Bankruptcy Basics

Bankruptcy protects consumers by helping them resolve their debts and stopping harassment by collectors. It can also give debtors welcome breathing room before they attempt to make a rebound.

Tax Debt and the Automatic Stay

The automatic stay is a freebie of sorts — It provides temporary relief even if the court denies you bankruptcy protection. What’s more, it goes into effect the instant you file.

While active, the automatic stay bars creditors, such as the IRS, from trying to collect your debt balance. Creditors can ask the court to lift the stay so that they can keep coming after you. Although judges won’t remove your temporary protection without a good reason, you may be less likely to receive a stay after filing multiple times.

The End Goal

Automatic stays only last during your bankruptcy case. The real objective of filing is to convince the court that you’re worthy of more permanent protection.

Bankruptcy involves the legal discharge, or cancellation, of outstanding debts that you lack the means to pay. Different types of filings, such as the overwhelmingly common Chapters 7 and 13, have distinct rules for the kinds of debt they’re allowed to discharge.

What makes taxes bankruptcy eligible?

To be discharged, your tax debts must have already been three years old when you filed and pertain to business or compensation-related income. You also need to have filed an on-time tax return no less than two years before seeking bankruptcy.

By law, the IRS is required to assess, or record, all overdue tax liabilities. Your IRS assessment must have occurred at least 240 days before you seek bankruptcy.

Bear in mind that you’ll need to be on your best behavior during the case. For instance, skipping a return or missing your current-year tax deadline might result in your bankruptcy petition’s dismissal.

Using Bankruptcy for Taxes

Bankruptcy is an ideal fresh start for many Wisconsin taxpayers. Considering that American consumers struggle beneath about $4 trillion in debt, it’s not unreasonable to assume that someone with tax liabilities might also need relief elsewhere. Filing for Chapter 13 or Chapter 7 bankruptcy could be a viable answer.

Not every debt qualifies for bankruptcy. Depending on your tax circumstances, you might only receive partial relief. Considering a bankruptcy filing is still worth it, however, because it might be the one thing that turns your situation around. Learn whether it’s the right move for you by contacting the Burr Law Office team. Call 262-827-0375 for a FREE tax debt relief consultation today.

Filing for Bankruptcy? Here’s What to Know About Your Tax Debt

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Filing for bankruptcy won’t magically solve all of your money problems. What it can do, however, is reduce some of your hardships. When it comes to your overdue tax burdens, you may get some relief. Does bankruptcy clear tax debt? Here’s what to know about the complex rules and why you might need legal help.

Understanding Bankruptcy

Being bankrupt doesn’t just mean that you can’t pay your debts. It’s a specific type of legal status with roots in constitutional law, and you have to petition a court to leverage the benefits. As you might expect, this process includes a variety of rules.

A Good Example: Chapter 7

Imagine that you file for Chapter 7 bankruptcy in Wisconsin. This widely used form of protection lets you transfer your assets, or properties, over to a third party. The third party, or trustee, then sells them and uses the money to pay your creditors.

Chapter 7 and Taxes

Does bankruptcy clear tax debt? It all depends on your situation and ability to build a strong, evidence-backed case.

Chapter 7 only lets you eliminate tax debt under specific circumstances. For instance, you’ll still need to file your taxes during your bankruptcy case, and you need to have filed a previous return at least two years before seeking protection. You also can’t have previously taken unlawful actions, such as lying on a return or trying to hide non-exempt assets, to evade taxes or mislead the court.

The specifics of the tax debts that you want to discharge also matter. Chapter 7 only excuses income tax debt that’s at least three years old at the time of your filing. In addition, the IRS needs to have assessed the liability at least 240 days before your bankruptcy petition becomes formal.

If you owe money in penalties from missing a payment or took on more tax debt recently, then these liabilities won’t be excused. It’s also important to understand the case-by-case limitations of the rules: As various cases in the Eastern District of Wisconsin Bankruptcy Court have shown, things like tax refunds may not be protected from claims.

The Value of Filing for Bankruptcy

Why file for protection if you have to jump through so many hoops? When you work with a reputable attorney like Burr Law Office, there are many potential advantages.

Chapter 7 has the benefit of immediately stopping your collectors from pursuing repayment. This temporary relief, also known as an automatic stay, only lasts while your case is going through court, but it can be a huge perk if you’re struggling financially. What’s more, the stay goes into effect the instant you file even if you don’t eventually receive approval.

Chapter 7 filings can also be quick compared to alternatives, such as Chapter 11 and Chapter 13 bankruptcy. Although these options have their benefits, they require you to come up with a repayment plan, which can take time.

Filing for bankruptcy has the potential to relieve you from overbearing debt. Even if it doesn’t clear all of your tax debt, the mere act of giving you breathing room may make it easier to adapt and pay what you owe.

Want to learn more about the ins and outs of seeking bankruptcy protection in Milwaukee or Waukesha? Talk to a legal tax debt adviser at the Burr Law Office. Call (262) 827-0375 today.