P.O. Box 7 • 215 North Lake Avenue
Phillips, WI 54555
Phone: 715-339-2196
Fax: 715-339-4664
P.O. Box 151 • 170 North 4th Avenue
Park Falls, WI 54552
Phone: 715-762-3258
Fax: 715-762-3289
Bankruptcy
Bankruptcy is the process of seeking to discharge an individual’s debts when that individual is having trouble keeping up with their
day to day expenses. Bankruptcy is a federal process. The different “chapters” (such as Chapters 7, 11, 12, or 13) of bankruptcy
refer to the different sections of the federal Bankruptcy Law. Which chapter of bankruptcy is appropriate for you may depend on
“means testing,” which is income-based. An attorney can help you to choose whether a Chapter 7, 11, 12, or 13 bankruptcy is most
appropriate for your situation.
Chapter 7
Chapter 7, the most popular form of bankruptcy, is bankruptcy for an individual or a married couple filing jointly. An individual
files for Chapter 7 bankruptcy in an effort to discharge, or wipe away, that person’s debts. Common dischargeable debts include
credit cards, past-due accounts, foreclosure deficiency judgments, and repossession judgments. Once a Chapter 7 bankruptcy is
filed, the creditors cannot keep pursuing a legal action against that person (including temporarily halting a foreclosure or
repossession action), start another legal action, or contact the individual any further.
Before a bankruptcy can even be filed, credit or debt counseling is required to be completed by the individual. Credit counseling
usually takes less than one hour and can be done on the phone. A certificate certifying the debtor’s attendance will be required
by the bankruptcy court and attached to the petition for bankruptcy.
During the bankruptcy process, a trustee will be appointed by the court to review what property of the debtor is available to pay
off the creditors. Most of a creditor’s assets will be exempt, meaning that the bankruptcy trustee cannot take them and sell
them. If an asset is exempt, that means that the debtor may keep that asset. The nonexempt assets will be sold and applied
toward that individual’s debts. Exempt assets include vehicles, household goods, homes, 401ks, IRAs, and similar retirement
plans, along with other property. Items that are exempt are exempt up to a certain dollar amount of value that changes from
time to time.
If a person has a loan agreement on their vehicle or home, a debtor can either give the collateral on the loan (such as the
vehicle on a vehicle loan) back to the bank and have any remaining loan balance discharged in bankruptcy, or an individual can
work with the bank to reaffirm the debt. Reaffirming a debt means that the bank would enter into a new loan agreement with
the individual so that the person may keep the collateral at issue, but must keep making payments to the bank. A person going
through bankruptcy may work with their lenders to affirm some of their debts if they choose to.
A bankruptcy does not discharge every type of debt. Debts such as some taxes, child support, or student loans may not be
dischargeable, depending on each person’s individual case.
As part of the bankruptcy process, the debtor must attend a meeting with the bankruptcy trustee and creditors. Rarely do any
creditors show up, and if they do, they can only inquire about nonexempt assets of the debtor or their own collateral if any was
pledged as security for the loan. If the debtor lives in Price or the surrounding counties, that debtor must file their bankruptcy
petition in the Western District of Wisconsin and will attend the meeting in Eau Claire, Wisconsin. In most cases, this is the only
formal proceeding a debtor must attend.
Chapter 7 bankruptcy can be filed for once every 8 years. Filing a bankruptcy action will generally show up on an individual’s
credit report for 8-10 years. While bankruptcy may affect that individual’s ability to get loans or credit in the future, a debtor
who is behind on their bills may already have a credit report that makes obtaining credit difficult.
Chapter 11
Chapter 11 bankruptcy applies to businesses and individuals. Chapter 11 bankruptcies restructure the debts of the petitioner
pending a vote of the creditors. The restructuring plan is then approved by the bankruptcy judge. Chapter 11 bankruptcies are
very complex and are usually only used in very specific situations.
Initial Consultation
Slaby Deda Law Offices has the expertise necessary to help you through the legal process of filing the petition for bankruptcy, the
necessary schedules, statement of financial affairs, and bringing your bankruptcy to a conclusion. The bankruptcy process is very
detail-oriented and case-specific. At Slaby Deda Law Offices, most bankruptcies are done for an up-front flat fee. Call 1-800-543-
6440 to set up a consultation.
P.O. Box 7 • 215 North Lake Avenue
Phillips, WI 54555
Phone: 715-339-2196
Fax: 715-339-4664
P.O. Box 151 • 170 North 4th Avenue
Park Falls, WI 54552
Phone: 715-762-3258
Fax: 715-762-3289
Bankruptcy
Bankruptcy is the process of seeking to discharge an
individual’s debts when that individual is having trouble
keeping up with their day to day expenses.
Bankruptcy is a federal process. The different
“chapters” (such as Chapters 7, 11, 12, or 13) of
bankruptcy refer to the different sections of the federal
Bankruptcy Law. Which chapter of bankruptcy is
appropriate for you may depend on “means testing,”
which is income-based. An attorney can help you to
choose whether a Chapter 7, 11, 12, or 13 bankruptcy
is most appropriate for your situation.
Chapter 7
Chapter 7, the most popular form of bankruptcy,
is bankruptcy for an individual or a married couple
filing jointly. An individual files for Chapter 7
bankruptcy in an effort to discharge, or wipe
away, that person’s debts. Common
dischargeable debts include credit cards, past-due
accounts, foreclosure deficiency judgments, and
repossession judgments. Once a Chapter 7
bankruptcy is filed, the creditors cannot keep
pursuing a legal action against that person
(including temporarily halting a foreclosure or
repossession action), start another legal action, or
contact the individual any further.
Before a bankruptcy can even be filed, credit or
debt counseling is required to be completed by
the individual. Credit counseling usually takes
less than one hour and can be done on the
phone. A certificate certifying the debtor’s
attendance will be required by the bankruptcy
court and attached to the petition for bankruptcy.
During the bankruptcy process, a trustee will be
appointed by the court to review what property of
the debtor is available to pay off the creditors.
Most of a creditor’s assets will be exempt,
meaning that the bankruptcy trustee cannot take
them and sell them. If an asset is exempt, that
means that the debtor may keep that asset. The
nonexempt assets will be sold and applied toward
that individual’s debts. Exempt assets include
vehicles, household goods, homes, 401ks, IRAs,
and similar retirement plans, along with other
property. Items that are exempt are exempt up
to a certain dollar amount of value that changes
from time to time.
If a person has a loan agreement on their vehicle
or home, a debtor can either give the collateral on
the loan (such as the vehicle on a vehicle loan)
back to the bank and have any remaining loan
balance discharged in bankruptcy, or an individual
can work with the bank to reaffirm the debt.
Reaffirming a debt means that the bank would
enter into a new loan agreement with the
individual so that the person may keep the
collateral at issue, but must keep making
payments to the bank. A person going through
bankruptcy may work with their lenders to affirm
some of their debts if they choose to.
A bankruptcy does not discharge every type of
debt. Debts such as some taxes, child support, or
student loans may not be dischargeable,
depending on each person’s individual case.
As part of the bankruptcy process, the debtor
must attend a meeting with the bankruptcy
trustee and creditors. Rarely do any creditors
show up, and if they do, they can only inquire
about nonexempt assets of the debtor or their
own collateral if any was pledged as security for
the loan. If the debtor lives in Price or the
surrounding counties, that debtor must file their
bankruptcy petition in the Western District of
Wisconsin and will attend the meeting in Eau
Claire, Wisconsin. In most cases, this is the only
formal proceeding a debtor must attend.
Chapter 7 bankruptcy can be filed for once every
8 years. Filing a bankruptcy action will generally
show up on an individual’s credit report for 8-10
years. While bankruptcy may affect that
individual’s ability to get loans or credit in the
future, a debtor who is behind on their bills may
already have a credit report that makes obtaining
credit difficult.
Chapter 11
Chapter 11 bankruptcy applies to businesses and
individuals. Chapter 11 bankruptcies restructure
the debts of the petitioner pending a vote of the
creditors. The restructuring plan is then approved
by the bankruptcy judge. Chapter 11
bankruptcies are very complex and are usually
only used in very specific situations.
Initial Consultation
Slaby Deda Law Offices has the expertise necessary to
help you through the legal process of filing the petition
for bankruptcy, the necessary schedules, statement of
financial affairs, and bringing your bankruptcy to a
conclusion. The bankruptcy process is very detail-
oriented and case-specific. At Slaby Deda Law Offices,
most bankruptcies are done for an up-front flat fee.
Call 1-800-543-6440 to set up a consultation.