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The Wisconsin bankruptcy Court now enforces new laws contained ion
the Abuse Prevention Act. These new Wisconsin bankruptcy laws
incorporate several new tests as a condition of satisfying legal
qualification for a discharge under Chapter 7. Collectively, the means
testing requirement steers most debtors into Chapter 13, by testing multiple
restrictions on income, debts owed, and formulaic exclusions applied to
Chapter 7.
If qualified, Chapter 7 allows debtors to declare up to $40,000
homestead equity under the state exemption law, or up to $18,500 home
equity under the federal section. Similarly, the list of amounts and
categories of personal property exemptions are different. The assistance
of a Wisconsin bankruptcy lawyer is highly recommended when considering
Chapter 7, both for qualification and efficient utilization of exemption
laws. Overall, the desire of credit card companies and large financial
institutions to eliminate Chapter 7 in all but the most severe
situations is now federal law.
See also: Wisconsin Homestead Exemption.
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