If you are thinking about filing for bankruptcy in Wisconsin, then you should know about Homestead Exemption and how it can apply to where you live. When anyone applies for bankruptcy protection, the first thing that they think about is their home. The Homestead Exemption can protect your property from being included in a bankruptcy sale. The equity in your home will be protected and a certain amount will be given to pay off the debts.
Benefits of Homestead Exemption
Under Wisconsin law, families can protect their residence during bankruptcy through a homestead exemption of 75,000 dollars for a single person. Moreover, a married couple will receive a 150,000 exemption if they apply for bankruptcy together. This applies to the property attached to the home.
Homestead Exemption is Applicable To?
You may opt to offer a discount on the total amount due. This is when the debtor says they don’t have the resources to pay. And, if this debtor wants to come back to your business this can be beneficial. You get to decide on the discounts you offer.
Another strategy is to split up payments on a plan . An experienced attorney can institute a payment plan with default mechanisms to protect your business if a payment is missed.
Keep in mind that you are not obliged to give the debtor a discount. Many collection cases result in a judgment and then full payment thereof.
STATUTE OF LIMITATION FOR DEBT COLLECTION
Homestead Exemption can only be applied to a primary residence including the following in Wisconsin:
- Mobile home
However, you will be required to seek the advice of an attorney to determine whether or not homestead exemption is applicable to your property.
Additional Declaration for Homestead Exemption
In many states, it is required for the debtors to file an additional declaration for Homestead Exemption, but that is not the case in Wisconsin. So, if you are residing in Wisconsin and want to discharge your debts through a Homestead Exemption a declaration is not needed.
Requirement of Domicile for Homestead Exemption
Under the Federal law, there is a domicile requirement that the debtors must meet if they want to receive homestead exemption. Moreover, in order to benefit from full amount of the exemption, the debtors will be required to have a residence in the area for at least forty months before they file for bankruptcy.
Contact Our Experienced Bankruptcy Attorneys
Determining whether to file for bankruptcy protection is an important decision and while it has consequences even in a Chapter 7 there is usually a way to protect the homestead. If you want to protect your assets when filing for bankruptcy, you will need the legal assistance and guidance from a bankruptcy attorney.
To discuss your debt collection case, please reach out to us at (920)-921-2300, through our live chat feature, or with our contact us form below.
To discuss your debt collection case, please reach out to us at (920)-921-2300, through our live chat feature, or with our contact us form below.[/column]