Dan Freund, Eau Claire bankruptcy attorney

More bankruptcy questions? Check our our FAQ page.

dangerThis page contains general information. Contact a WBG attorney for specific advice.

Your buddy at the bar, who knows all about bankruptcy, says you can’t file bankruptcy on certain debts. Is he right?

Credit Cards

You can discharge ordinary credit card debt in bankruptcy.  Why do we say “ordinary”? Because you can’t run up your balances just before a bankruptcy and then expect the judge to wipe out your debt.

Oh, and by the way, you can get a credit card after a bankruptcy. At first you may only qualify for a secured card. But if you use that card wisely you’ll soon be able to get a regular card.

Medical  Bills

You can also discharge medical bills in bankruptcy. You may hear the phrase “medical bankruptcy,” but there is no such thing. If you file a bankruptcy you’ll need to list all of your debts – not just the medical bills.

Payday Loans

Bankruptcy covers cash advance loans. Some payday lenders – particularly those who operate in foreign countries – will tell you otherwise. Some may even threaten to send you to jail if you don’t pay. That will not happen. So don’t you believe them!

That said, if you have a title loan on you vehicle, the lender can take your car away if you don’t pay. However, you may be able to save your vehicle – and pay a much lower interest rate – with a Chapter 13 bankruptcy.

Judgments

Bankruptcy also wipes out claims that have gone to judgment – if, that is, the underlying debt would qualify for discharge.

But things can get a little complicated if the judgment becomes a lien on real estate. Because of the bankruptcy you don’t have to pay the debt but, if you don’t pay, federal law allows the judgment holder to sell you property out from under you and apply the proceeds toward the judgment.

But don’t panic. A special Wisconsin state law may wipe out the judgment after a bankruptcy.

Taxes

What, you can get rid of taxes in bankruptcy? Yes! Well, you can get rid of some taxes. Including, for example, income taxes more than three years old for which you filed returns on time. Like judgments (see above), things can get complicated if the taxing authority has filed a lien. Unlike judgments, you can’t use that special Wisconsin statute to make a tax lien go away.

Don’t see your debt on this list? Call a WBG attorney for more information.

More bankruptcy questions? Check our our FAQ page.

This page contains general information. Contact a WBG attorney for specific advice.
Wisconsin Bankruptcy Guide is provided by law firms designated as Debt Relief Agencies by the federal government because we help people file for relief under the Bankruptcy Code. We also provide other types of debt relief options.

Image credit: Quinn Dombrowski

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