Chapter 7, Chapter 13
State Action 128
Attorney Paul Strouse - Debt Relief, Asset Protection, Debt Restructuring

What Is Bankruptcy?

Bankruptcy is a legal process where a person (or a business) attempts to relieve himself/herself or restructure his/her debts. In Wisconsin, this can be achieved for an individual through chapter 7 bankruptcy, chapter 13 bankruptcy or by what is called a state action 128. It is a formal declaration of an entities inability to repay debts.

Depending on a person's situation, they may not be able to file a Chapter 7 bankrupcty. This method can enable a person to start over by wiping out most or all debts. There are restrictions for this form of bankruptcy. A person cannot have a lot of assets and file Chapter 7. In addition, certain assets may be forced to be liquidated in order for a person to successfully go through this process.

When a person is unable to file chapter 7 or would like to simply restructure his/her debts, a State Action 128 or Chapter 13 bankruptcy is used. Both devices involve negotiated payment plans with creditors. There are time limits with each method. Filing a Chapter 13 or State Action 128 can enable a person to keep their assets and resolve a troubled situation.