When Should You File Chapter 13 Bankruptcy in Kenosha, WI

Chapter 13 bankruptcy in Kenosha, WI allows you to keep your home and car while repaying debts through a court-approved plan spanning three to five years.

You propose a payment plan based on your disposable income after covering necessary living expenses, and the court approves it if creditors receive at least what they would under Chapter 7.

Monthly payments go to a trustee who distributes funds to creditors according to priority. Secured debts like mortgages and car loans receive payment first, then priority debts such as recent taxes, and finally unsecured creditors like credit card companies. The plan typically lasts 36 months if your income is below the state median or 60 months if above.

You catch up on mortgage arrears over the life of the plan. This structure prevents foreclosure and lets you keep your home as long as you maintain current mortgage payments plus the trustee payment each month.

Yes, filing Chapter 13 triggers an automatic stay that stops wage garnishment, repossession, foreclosure proceedings, and all other collection actions the same day your petition is filed.

The stay remains in effect throughout your repayment plan. Creditors cannot resume collection without court permission, giving you uninterrupted time to fulfill your obligations. Your paycheck returns to normal, minus the trustee payment.

If a creditor violated the automatic stay, you may have grounds for damages. The Michelson Law Offices has over 20 years of experience enforcing debtor protections in Wisconsin bankruptcy courts.

Secured debts like home and car loans, priority debts including recent taxes and child support, and then general unsecured debts are paid in that order through your plan.

You must pay secured and priority debts in full over the plan term. Unsecured creditors receive whatever remains from your disposable income, which may be a fraction of the balance owed. At the end of the plan, any remaining unsecured debt is discharged.

Kenosha's mix of single-family homes and lakefront properties creates varying equity situations, and higher equity affects the minimum you must pay unsecured creditors in a Chapter 13 plan.

If your non-exempt equity exceeds Wisconsin exemption limits, your plan must pay unsecured creditors at least that amount over the repayment period. A local attorney evaluates your property to structure the most favorable plan. Kenosha's stable housing market often allows homeowners to retain equity while managing debt.

The Michelson Law Offices is a family-owned firm that stays with you through every phase of your case. Connect with us at 262-638-8400 to start building a repayment plan tailored to your Kenosha household.