How to File for Bankruptcy in Wisconsin: Chapter 7, 13, and Exemptions

To file for bankruptcy in Wisconsin, you choose between Chapter 7 (liquidation) or Chapter 13 (a three-to-five-year repayment plan), complete a pre-filing credit counseling course from an approved provider, assemble your financial records, decide whether to use Wisconsin’s exemptions or the federal set, and submit your petition to the bankruptcy court for your district. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. The moment your petition is filed, an automatic stay stops most collection activity against you. Chapter 7 cases typically wrap up in four to six months; Chapter 13 runs three to five years.

Step 1: Choose Between Chapter 7 and Chapter 13

Wisconsin residents filing personal bankruptcy almost always use one of these two chapters, and they work very differently.1Wisconsin Department of Financial Institutions. Bankruptcy

In Chapter 7, a court-appointed trustee reviews your assets, sells anything that isn’t protected by an exemption, and uses the proceeds to pay creditors. Qualifying debt left over is discharged. Most Chapter 7 filers don’t actually lose property because exemptions cover what they own, but the risk is real if you have significant equity in a home, vehicle, or other assets beyond the exemption limits.

Chapter 13 lets you keep all your property. In exchange, you commit to a court-approved repayment plan lasting three to five years, making monthly payments to a trustee who distributes the money to your creditors.2United States Courts. Chapter 13 – Bankruptcy Basics Remaining eligible debts are discharged at the end of the plan. Chapter 13 is particularly useful if you’re behind on a mortgage and want to catch up without losing the house, or if you have non-exempt assets a Chapter 7 trustee could sell.

Chapter 13 has eligibility caps: noncontingent, liquidated unsecured debts must be under $526,700, and secured debts must be under $1,580,125.2United States Courts. Chapter 13 – Bankruptcy Basics Above those figures, Chapter 11 becomes the alternative.

Step 2: Pass the Means Test

Chapter 7 isn’t open to everyone. Before you can file, you have to pass the means test, which compares your household income to Wisconsin’s median for a family of your size. If you’re below the median, you qualify. If you’re above, a further calculation of income minus allowed expenses decides whether you have enough disposable income to fund a Chapter 13 plan instead.

For cases filed between November 1, 2025, and March 31, 2026, the Wisconsin thresholds are:3U.S. Trustee Program. Census Bureau Median Family Income By Family Size

  • 1 person: $69,343
  • 2 people: $87,938
  • 3 people: $105,734
  • 4 people: $129,964
  • Each additional person: add $11,100

These figures update every six months, so check the Department of Justice website if you’re filing after March 2026. Passing the means test doesn’t guarantee Chapter 7 approval — the court can still dismiss a case it finds abusive — but coming in under the threshold clears the first hurdle.

Step 3: Decide Between Wisconsin and Federal Exemptions

Exemptions decide which property is safe from the trustee. Wisconsin lets you choose between the state exemption system and the federal one, but you can’t pull items from both lists. The right choice depends on what you own.

Wisconsin State Exemptions

The state system’s main protections:

  • Homestead equity up to $75,000 in your primary residence, or $75,000 per spouse if you file jointly.4Wisconsin State Legislature. Wisconsin Code 815.20 – Homestead Exemption Definition
  • Motor vehicles up to $4,000 in aggregate value, with unused consumer goods exemption available to increase this.5Wisconsin State Legislature. Wisconsin Code 815.18 – Exempt Property
  • Consumer goods up to $12,000 total (household goods, clothing, appliances, books, and similar personal property).
  • Bank deposits up to $5,000.
  • Personal injury awards up to $50,000.
  • Retirement accounts, fully exempt for public employees, private pension plans, and other qualified accounts.

Wisconsin’s state system has no general wildcard exemption, so there’s no catch-all amount for property that doesn’t fit a specific category.

Federal Exemptions

As adjusted effective April 1, 2025:6Office of the Law Revision Counsel. 11 USC 522 – Exemptions

  • Homestead equity up to $31,575.
  • One motor vehicle up to $5,025.
  • Wildcard of $1,675 in any property, plus up to $15,800 of any unused portion of the homestead exemption.

The wildcard is what separates the two systems. If you don’t own a home, you can stack the unused homestead amount onto the wildcard for up to $17,475 to protect any type of property — cash, investments, a tax refund, whatever the state categories don’t cover.

Which One to Pick

Homeowners with meaningful equity almost always benefit from the state system, since $75,000 in homestead protection dwarfs the federal $31,575. Renters and people with little home equity often do better with the federal set because of the wildcard. If your car is worth more than $4,000, the federal $5,025 vehicle exemption edges past the state limit. Run both sets against your actual property list before you file. The choice locks in when you submit your petition.

Step 4: Take Credit Counseling and Gather Your Records

Both Wisconsin bankruptcy courts require you to complete a credit counseling course within 180 days before filing, from a provider approved by the U.S. Trustee Program.7United States Bankruptcy Court Western District of Wisconsin. Credit Counseling Joint filers each complete it separately. The course runs about an hour, is available online or by phone, and produces a certificate you file with your petition.8United States Bankruptcy Court Eastern District of Wisconsin. Eligibility

Pull together these records before you start the forms:

  • Pay stubs from the last six months
  • Federal tax returns for the most recent two years
  • Bank and investment account statements
  • A list of all creditors with account numbers, balances, and addresses
  • Property deeds, vehicle titles, and loan agreements
  • Statements for retirement accounts, life insurance policies, and college savings plans
  • A current household budget showing monthly income and expenses

Self-employed filers also need profit and loss statements. All of this feeds into the official bankruptcy schedules, which list your assets, liabilities, income, expenses, and recent financial transactions. The forms are on the U.S. Courts website. Incomplete or inaccurate disclosures can delay your case, get it dismissed, or produce fraud allegations, so accuracy is worth the extra hour.

Step 5: File in the Right District

Wisconsin has two federal bankruptcy courts, and where you live decides which one hears your case:

Filing fees run $338 for Chapter 7 and $313 for Chapter 13. If you can’t pay upfront, you can ask the court to let you pay in installments. Chapter 7 filers with household income below 150% of the federal poverty guidelines can apply for a full fee waiver. Attorneys typically file electronically; without one, you can file in person or by mail.

Other costs to plan for: the two required courses (credit counseling before filing, debtor education after) generally run $15 to $50 each. Attorney fees for a standard Wisconsin Chapter 7 case usually range from $1,000 to $2,500 depending on complexity and location. Chapter 13 attorney fees run higher and are often built into the repayment plan.

What Happens Right After You File

The Automatic Stay

Filing triggers an automatic stay, a federal court order that immediately halts most collection activity against you — creditor calls, wage garnishments, lawsuits, and pending foreclosure proceedings all stop.11Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay For many filers this is the most immediate relief bankruptcy provides.

The stay has limits. It doesn’t stop criminal proceedings, and it doesn’t block child support or alimony collection from income outside the bankruptcy estate. Family law matters involving paternity, custody, visitation, and domestic violence continue unaffected. Creditors can also ask the court to lift the stay for specific debts. A mortgage lender, for example, may seek permission to resume foreclosure if you’re not making payments and the property has no equity.

If you had a prior case dismissed within the last year, the stay in the new case lasts only 30 days unless you convince the court to extend it. A third filing within a year gets no automatic stay at all unless you petition for one.

The 341 Meeting

About three to six weeks after you file, the court schedules a Meeting of Creditors, known as the 341 meeting. Creditors rarely show up. It’s a short session with your assigned trustee, who verifies your identity (bring a government-issued photo ID and your Social Security card), confirms the information in your petition, and asks questions about your assets, income, and debts. In the Eastern District of Wisconsin, all Chapter 7 and Chapter 13 341 meetings are held by Zoom video conference.12U.S. Trustee Program. Region 11 – Local Section 341 Meeting Information

Debtor Education

Before your discharge can be issued, you also have to complete a debtor education course (sometimes called a personal financial management course), separate from the pre-filing counseling. It covers budgeting and credit management, comes from an approved provider, and can usually be done online. Skipping it blocks your discharge, so don’t leave it until the end.

Reaffirmation Agreements

If you have a car loan, mortgage, or other secured debt and want to keep the property, you may be asked to sign a reaffirmation agreement. That’s a voluntary contract keeping you personally liable on that specific debt despite the bankruptcy, effectively carving it out of your discharge. You keep the collateral; the trade-off is that if you later fall behind, the creditor can repossess and pursue any deficiency with no bankruptcy shield.

Reaffirmation isn’t required for every secured item. In some situations you can keep making payments without reaffirming, though it depends on the creditor and the type of debt. If you sign one and change your mind, you can rescind any time before the discharge is entered or within 60 days after the agreement is filed, whichever is later. Filers without an attorney get a court hearing to make sure the agreement doesn’t create undue hardship.

Debts That Won’t Be Wiped Out

Bankruptcy eliminates many debts, but federal law carves out categories that survive a discharge.13Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge The main ones:

  • Child support and alimony (all domestic support obligations)
  • Most recent income taxes, plus taxes tied to late or fraudulent returns or attempted evasion
  • Government-backed and qualified private student loans, unless you can prove undue hardship (a standard that’s notoriously hard to meet)
  • Debts obtained through fraud or misrepresentation
  • Liability for death or personal injury caused by driving while intoxicated
  • Criminal fines, restitution, and most government penalties
  • Debts you didn’t list on your petition, if the creditor didn’t learn of the case in time to participate

Recent large purchases raise flags too. Consumer debts for luxury goods over $500 incurred within 90 days before filing, and cash advances over $750 taken within 70 days, are presumed non-dischargeable. The court can overcome that presumption, but running up cards right before filing creates problems.

Credit, Future Filings, and What Comes Next

A bankruptcy case can stay on your credit report for up to 10 years from the filing date.14Office of the Law Revision Counsel. 15 USC 1681c – Requirements Relating to Information Contained in Consumer Reports The major credit bureaus typically remove a completed Chapter 13 after seven years, while Chapter 7 usually runs the full ten. Expect higher interest rates on any new credit and possible denials in the first year or two after discharge. Many filers still see scores start recovering within 12 to 18 months, since the discharge itself clears out the delinquencies and debt-to-income ratios that had been pulling them down.

Federal law bars government employers from firing you or refusing to hire you because of a bankruptcy filing. Private employers can’t fire you for it either, though private-sector hiring protections are weaker. Landlords can and do check credit history.

If you’ve already received a bankruptcy discharge, federal law sets waiting periods before you can file again and get another one. The clock runs from the prior case’s filing date, not the discharge date:15Office of the Law Revision Counsel. 11 USC 727 – Discharge

  • Chapter 7 after Chapter 7: eight years
  • Chapter 7 after Chapter 13: six years, unless the prior Chapter 13 paid 100% of unsecured claims, or at least 70% and was proposed in good faith as your best effort
  • Chapter 13 after Chapter 7: four years
  • Chapter 13 after Chapter 13: two years

Filing before those windows close doesn’t just risk a rejected discharge. A second filing within one year of a dismissed case cuts the automatic stay to 30 days, and a third within a year eliminates it. If a repeat filing is on the table, timing matters as much as the chapter you pick.