Chapter 7


(Straight or Liquidation Bankruptcy)
In chapter 7 you file a petition asking the court to discharge your debts. The basic idea is to wipe out (discharge) your debts in exchange for your giving up your non-exempt property. In most cases, however, all of your property will be exempt.

Step One: Appointment with attorney Peter J. Zwiefelhofer of the Milwaukee Bankruptcy Center. Pete will prepare your bankruptcy petition. The petition will list everything you owe (i.e., your debts), everything you own (i.e., your property), your monthly income and your monthly living expenses.

Step Two: Your bankruptcy petition is filed with the Court. Once your petition is filed, you are under protection of the Court. Creditors may not call you, mail you bills, sue you, garnish your wages or cut-off your utility service.

Step Three: A Meeting of Creditors is held about a month after filing. You must appear. Pete will be there with you. The meeting is conducted by a bankruptcy trustee (not a judge). Most of the time, this meeting will last only five or ten minutes. The trustee will ask you questions about your bankruptcy forms and your financial situation. Creditors rarely attend this meeting.

Step Four: About 10 weeks after your meeting of creditors you will get your discharge order in the mail. The discharge order wipes out all your dischargeable debt. Your bankruptcy is now over.