Chapter 7 Bankruptcy in Milwaukee | Daylight Bankruptcy Law

Typical length: About 4 months from filing to discharge in many cases
Flat fee: From $1,250 plus the court filing fee
Who qualifies: The means test based on income and household size

What it is, in plain words

Chapter 7 is the most common kind of personal bankruptcy. It can clear many unsecured debts, like credit cards, medical bills and personal loans. A court-appointed trustee reviews your paperwork and your property.

Most people who file keep their household things, their car and their retirement savings, because the law protects (exempts) them. We check what is protected in your case before you file, not after.

Often a good fit if

Most of your debt is credit cards, medical bills or personal loans
Your household income is near or below the Wisconsin median for your household size
You are current on your house and car, or you are ready to let one go
You have not received a Chapter 7 discharge in the last 8 years

Maybe not the right tool if

You are behind on your mortgage and want to keep the house (Chapter 13 can spread out the missed payments)
You own property worth more than the exemptions protect
Most of what you owe is recent taxes, support or student loans, which usually remain

Step by step

How it usually goes with us

01

Free consultation

45 minutes. We look at your debts, income and property and tell you plainly whether Chapter 7 fits.
02

Credit counseling course

A short online course from an approved provider, required before filing. Most people finish it in an evening.
03

We prepare and file

You send pay stubs, tax returns and bills. We prepare every form and file. The automatic stay starts that day.
04

Meeting of creditors

About a month later, a short meeting with the trustee, often by video. We prepare you and attend with you.
05

Discharge

After a second short course, the court usually enters the discharge about two months after the meeting.

What usually goes, and what usually stays

Usually cleared

Credit card balances
Medical and dental bills
Personal, payday and signature loans
Past-due utility bills
Most collection lawsuits and judgments for these debts
What is still owed after a repossession

Usually stays

Child support and alimony
Most student loans (a separate case that is hard to win)
Recent income taxes
Court fines and restitution
Debts from injuries caused by drunk driving

A general guide only. Whether a specific debt can be discharged depends on the facts, and a creditor can sometimes object.

Chapter 7

Questions people ask us

Will I lose everything I own?

Usually not. Exemptions protect a set amount of home equity, a vehicle, household goods, tools for work and most retirement accounts. In most cases we see, people keep everything they own. If something is not protected, we tell you before filing so you can decide.

Do I have to go to court?

Usually just one short meeting with the trustee, called the meeting of creditors. It is often held by video and takes a few minutes. Creditors rarely attend. A judge is seldom involved in a simple Chapter 7.

Can I keep paying my car loan and keep the car?

Often, yes. If you are current and the car is protected by an exemption, you can usually keep paying and keep it. Some lenders ask for a reaffirmation agreement, which we review with you line by line.

Ready to talk it through? It's free, and there's no judgement here.

A 45-minute consultation in our office, by phone or by video. You'll leave knowing your options, the likely cost and the next step, even if that step is not bankruptcy.

Book a free consultation Call (414) 555-0162