Will bankruptcy discharge the entire amount of debt owed?

The answer to the question of whether bankruptcy will discharge the entire amount of debt owed depends on the type of debt and the individual’s specific situation. In Wisconsin, bankruptcy is designed to help individuals get out from under overwhelming debts and start over. Depending on the chapter of bankruptcy filed, some debts are discharged while others may remain. Under Chapter 7 bankruptcy, most unsecured debts are discharged, such as medical bills, credit cards, and payday loans. Secured debts, like car loans and mortgages, are not discharged and must be repaid. In a Chapter 13 bankruptcy, the debt is not completely discharged, but instead the individual must make a payment plan to repay the debt over a certain period. In Wisconsin, individuals must pass a means test in order to file for either Chapter 7 or 13 bankruptcy. This means that any disposable income must be used to pay off the debt. In other words, if a person’s income is higher than their expenses, they must use the excess income to pay off the debt. In conclusion, bankruptcy does not always discharge the entire amount of debt owed. Depending on the type of debt and the individual’s financial situation, some debts may be discharged while others must be repaid. Individuals must pass a means test in order to file for bankruptcy in Wisconsin.

Related FAQs

Are there any assets that I will not be able to keep in bankruptcy?
Can I file for bankruptcy to stop creditor harassment?
Are there any exceptions to the automatic stay issued when filing for bankruptcy?
What are the requirements for filing for bankruptcy under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
Can I discharge student loan debt through bankruptcy?
Can I still obtain a loan after filing for bankruptcy?
What type of information will I need to provide to my attorney before filing for bankruptcy?
Can I get a loan after filing for bankruptcy?
What is the difference between a voluntary and involuntary bankruptcy filing?
How long does it take to file for bankruptcy?

Will bankruptcy discharge the entire amount of debt owed?

Related FAQs

Related Blog Posts