Sometimes All We Need is a Fresh Start.

Financial hardship can happen to anyone — a medical emergency, a job loss, a divorce, or simply debt that spiraled out of control over time. If you are being hounded by creditors, facing foreclosure, or drowning in bills you cannot pay, federal bankruptcy law offers you a legitimate, court-protected path to relief. Carson Law Office has helped individuals and families in the greater Milwaukee area find that fresh start for over 22 years. We will assess your full financial situation and guide you to the option that fits your circumstances.

Chapter 7 vs. Chapter 13: Which Is Right for You?

Chapter 7 (Liquidation Bankruptcy) is the most common form of personal bankruptcy. It discharges most unsecured debts — credit cards, medical bills, personal loans — typically within four to six months. To qualify, you must pass the means test, which compares your income to Wisconsin’s median income. If you pass, most or all of your dischargeable debts are wiped away, giving you a genuine financial clean slate. Wisconsin’s generous exemptions mean that most people who file Chapter 7 keep all of their property.

Chapter 13 (Reorganization Bankruptcy) allows you to keep assets while repaying debts through a court-approved three-to-five year repayment plan. Chapter 13 is ideal if you have regular income and want to save your home from foreclosure, catch up on car payments, or pay down non-dischargeable debts like certain taxes and student loans over time. At the end of the plan, remaining eligible debts are discharged.

The Automatic Stay: Immediate Protection from Creditors

The moment your bankruptcy petition is filed, the automatic stay goes into effect — immediately halting all collection actions. Phone calls stop. Wage garnishments stop. Foreclosure proceedings halt. Lawsuits are frozen. This powerful legal protection gives you breathing room to work through the process without creditor pressure. For many clients, the relief they feel the day we file their petition is immediate and profound.

Wisconsin Bankruptcy Exemptions

Wisconsin law allows bankruptcy filers to protect significant assets from liquidation, including:

• Homestead Exemption: Up to $75,000 in home equity (the property you occupy as your primary residence)
• Vehicle Exemption: Up to $4,000 in equity in one motor vehicle
• Retirement Accounts: 100% of qualified retirement accounts (401(k), IRA, pension) are fully protected — these are not at risk in bankruptcy
• Household Goods and Furnishings: Up to $12,000 in personal property
• Tools of the Trade: Up to $3,000 in tools and equipment used in your occupation
• Life Insurance and Annuities: Protected under Wisconsin statute

For most people who file, these exemptions mean they keep their home, their car, and all of their retirement savings. Bankruptcy gives you relief from debt without stripping you of everything you own.

How Bankruptcy Affects Your Credit — and Your Future

A Chapter 7 bankruptcy remains on your credit report for 10 years; Chapter 13 for 7 years. However, many clients begin rebuilding their credit within 12 to 18 months of filing. A bankruptcy discharge actually improves your debt-to-income ratio immediately, and many clients qualify for new credit, car loans, and even mortgages within two to four years of their discharge. The temporary credit impact is far outweighed by the relief from crushing debt obligations.

With over 22 years of experience guiding Wisconsin families through bankruptcy, Attorney Christopher Carson provides practical, judgment-free counsel about your options. Call (262) 860-8932 today for a free consultation. You will leave the meeting with a clear understanding of your choices — and a path forward.