Before filing for bankruptcy in Wisconsin, take the time to learn about Wisconsin bankruptcy laws.

Bankruptcy Exemptions

Wisconsin offers its debtors two exemption schemes to choose from. The first, the federal exemption scheme, protects these assets:

• Up to $20,200 for a home
• Up to $1,350 for jewelry
• Up to $10,775 for life insurance policy with a loan value
• Alimony and child support
• ERISA qualified benefits, retirement benefits and pensions
• Up to $500 per item for a total of $10,775 for household goods
• Unmatured life insurance contract
• Up to $20,200 for personal injury payments
• Life insurance payments if you depended on the deceased
• Health aids
• Lost earnings payments
• Up to $3,225 for a vehicle
• Up to $20,200 for tools of the trade
• Wrongful death, crime victim’s compensation, public assistance Social Security, unemployment, and veterans’ benefits payments
• A wild card exemption for $1,075 of any property and $10,125 of the unused homestead exemption

The second exemption scheme, the state option, protects:

• Up to $40,000 for property you occupy
• Lost future earnings recoveries, if necessary for support
• Up to $5,000 for furniture, clothing, keepsakes, jewelry, appliances, musical instruments, books, firearms, sporting goods, animals, and other tangible property
• Burial provisions
• Up to $1,200 for motor vehicle
• Up to $ 7,500 for business and farm property
• Up to $25,000 for personal injury recoveries
• Tenant’s lease or stock interest in housing co-op
• Benefits from federal disability insurance
• Wrongful death recoveries, if needed for support
• Wages used to buy savings bonds
• Crime victim’s compensation
• Social service payments
• Life insurance proceeds
• Military pensions
• Public or private retirement benefits
• Alimony and child support
• Veterans’ benefits
• Workers’ compensation
• Business partnership property
• 75 percent of earned but unpaid wages

If you choose to keep your car and still owe your lender money on it, you will need to reaffirm that debt or the car can be repossessed. Do this within 45 days of your 341 meeting.

Chapter 7 Bankruptcy Information

If you can pass the means test, which means your income is at or below the median level in Wisconsin, you can file Chapter 7 bankruptcy. This form of bankruptcy eliminates all debts after your assets are sold to repay whatever can be repaid.

Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy gives debtors three to five years in which they need to attempt to repay their debts. Assets are held until that period is over. Any remaining debts are repaid through the sale of non-exempt assets, and then are eliminated.