When a family’s economic conditions are bad, many people have questions about how to deal with their financial problems. Which solution is simplest? Which will cause the least long-term harm? Which will be the least expensive in the long run? How can you get the answers to these dilemmas? In Wisconsin, a Milwaukee bankruptcy attorney has the answers you need. A skilled Milwaukee bankruptcy lawyer can lead you through the process to your best solution. As an extra added bonus, you will emerge from the process equipped with the knowledge needed to handle your future finances with skill. What are your options when you decide to seek help with your financial problems? A good bankruptcy lawyer can present you with the viable options and help you to select the one that will work best for you. This lawyer will suggest three options, debt settlement, Chapter 7, and Chapter 13.

Debt settlement can be the easiest, least drastic solution. When you choose debt settlement, your attorney can work with you and your creditors to work out a plan for your entire debt total to be paid off. The creditors would prefer payment to bankruptcy. This gives the lawyer some leverage on your behalf. As the lawyer works with the creditors to negotiate a plan, he or she can present the prepared schedules for bankruptcy as a means of working out the most advantageous plan for you. On some occasions, a large payment may be required. If this is something you are capable of doing, the lawyer can work out the details with you.

If debt settlement is not your best option, the next decision is which type of bankruptcy is best for you. In many ways and in many situations, Chapter 13 is the option for you. The initial prerequisites are a small fee and some classes. The first class is the same one taken by people pursuing debt settlement. After the first class comes the 341 creditor meeting. During this meeting, the meeting normally consists of the attorney, the debtor, and the bankruptcy trustee. (Creditors normally are not there.) During this meeting, the bankruptcy plans are laid out so that everyone has all the facts. These facts usually consist of the reason for the bankruptcy filing and the list of all monies owed. Third is a a class on financial management. The value of these meetings should be obvious if your goal is to get a new start and handle your money responsibly in the future. The goal of Chapter 13 is for you to repay an agreed-upon portion of all debts.

If the financial problems are more complicated then filing for Chapter 13 may not be the best choice for you. In such cases, Chapter 7 will be the answer. For this option, the same meetings and classes are also required. The outstanding characteristic of Chapter 7 is that the debts are not paid back—they are eliminated. Under this plan, you can keep assets such as your home, car and personal property as long as their value does not exceed the bankruptcy exemptions that you are allowed to take. Conversely, you cannot escape certain debts, some of which include taxes owed to the IRS or state, student loans, alimony, and maintenance or support payments.