Wisconsin Bankruptcy Law (WI)
Using Wisconsin law for maximum homestead exemption allowances
The State of Wisconsin is one of 14 states that permits state residents to elect exemptions established under Section 522 of the federal Code. This opportunity opens alternatives that are simply not available in other states, and easily results in above average retention of property value. In addition, the homestead exemption provided under the state version allows up to $40,000 in equity value to be retained when filing. This level of exemption value is extraordinary compared to states on the lower end of the spectrum, that permit debtors to retain as little as $3,750 for home equity.
Although Wisconsin bankruptcy law is considered progressive among states, be careful. Many new laws restrict qualification for Chapter 7, extend Chapter 13 plans, and limit the ability of judges to use a sense of fairness and discretion. These laws preempt past jurisprudence, and force all debtors nationwide to adhere to a standard drafted primarily by large credit card companies. These laws have been described as draconian by bankruptcy trustees and judges alike, and create new challenges for attorneys representing debtors. Nevertheless, because of hasty manner in which these laws were enacted, many loop holes exist for astute students of the law.