WISCONSIN BANKRUPTCY LAW:

Wisconsin Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Wisconsin Bankruptcy Statistics: In 2009, over 55,000 bankruptcies were filed in Wisconsin. Business bankruptcies accounted for 4,567 and personal bankruptcies accounted for 50,868 or more than 91% of Wisconsin’ bankruptcies.

Wisconsin State Bankruptcy Exemptions:

Homestead

The home where the debtor lives or plans to live is exempt from bankruptcy up to a value of $75,000. Proceeds from the sale of the debtors home is exempt for up to 2 years after the sale. Married couples are able to double the exemptions. The home within the meaning of this exemption includes real estate, mobile homes and manufactured homes. Land necessary for the enjoyment of the home is included – not exceeding 40 acres. Rental interest in property or shares in a co-op are also included within this exemption.

If the property is destroyed, insurance payments on the homestead are exempt for up to two years, governed by the same rules as the homestead exemption.

Personal Property

Insurance proceeds on exempt property are exempt for two years after the payment is received.

The following personal property is entirely exempt when filing bankruptcy in Wisconsin:

1. Burial plots
2. College savings accounts or tuition trust funds
3. Wages used to purchase savings bonds

The following damage payouts are exempt:

1. Damages recovered for lost future earnings are exempt to the extent that the funds are necessary for support.
2. Damages recovered for wrongful death claims are entirely exempt
3. Damages recovered for personal injuries are exempt up to $50,000
4. Crime victims compensation is exempt to the extent that the funds are necessary for support

Tangible property is exempt for up to $12,000 for a single personal and $24,000 for a married couple. Example of tangible property: Household goods and furnishings, clothing, keepsakes, jewelry, appliances, books, musical instruments, firearms, sporting goods and animals.

A motor vehicle is exempt for up to $4000 for a single person and $8000 for a couple. Any unused amount from the household goods exemption can be transferred to the motor vehicle exemption.

Bank account deposits up to $5,000 are exempt when filing for bankruptcy in Wisconsin.

Insurance

In a Wisconsin bankruptcy, the following types of insurance benefits are exempt:

1. Federal disability insurance benefits
2. Fraternal benefit society benefits
3. Life insurance or annuity
   • Un-matured or unvested life insurance contract, accrued dividends and loan value may be exempt if the debtor owns the contract; and insured is the debtor, the dependent of the debtor or someone the debtor is financially dependent on
     • The exemption is limited to $150,000, unless the policy was issued less than 24 months before filing bankruptcy, then the limit sharply drops to $4000.
     • The value of the un-matured insurance is limited to what it was before any payments made within 24 months before filing
     • The difference between the contract before payments for the last 24 months and after such payments or $4000, whichever is less, may be added to the exempt amount
   • Life insurance proceeds are exempt when the beneficiary is someone the debtor relies on for financial support

Pensions

Privately and publicly funded pension accounts including IRAs and Keoghs and 401(k)s are exempt subject to a variety of conditions governing retirement accounts, including IRS prerequisites. In many cases, particularly, when the debtor is also the owner of the business which provided the account, or has extensive control in funding and using the account, only funds necessary for support may be exempt.

The following individuals’ pensions are exempt:

1. Certain municipal employees
2. Firefighters and police officers who work in a city with a population over 100,000.
3. Military pensions.

Public benefits

The following public benefits are exempt when filing bankruptcy in Wisconsin:

1. Social services payments
2. Unemployment compensation
3. Workers’ compensation
4. Assistance for needy veterans and tuition assistance for veterans

Miscellaneous

Alimony and child support are exempt up to whatever is needed for support of the debtor and debtor’s dependents.

If the debtor is a partner in a business, the property of the business is exempt when filing bankruptcy in Wisconsin.

Tools of the Trade

Equipment, inventory, books, farm products and other tools of the trade are exempt for a total value of $15,000.

Wages

Wages are exempt at a rate of 75% of the weekly net income. The exemption is limited to what is necessary for the support of the debtor and the debtor’s dependents, but no less than 30 times the state or federal minimum wage. A judge has discretion to allow a greater percentage for a low income debtor.

The wages earned by county jail prisoners, county work camp prisoners and inmates under work-release are entirely exempt.

Wild card: No

Federal Bankruptcy Exemptions: Yes

Wisconsin Bankruptcy Courts:

United States Bankruptcy Court for the Eastern District Court of Wisconsin has jurisdiction in the following counties: Brown, Calumet, Dodge, Door, Florence, Fond du Lac, Forest, Green Lake, Kenosha, Kewaunee, Langlade, Manitowoc, Marinette, Marquette, Menominee, Milwaukee, Oconto, Outagamie, Ozaukee, Racine, Shawano, Sheboygan, Walworth, Washington, Waukesha, Waupaca, Waushara, Winnebago.

United States Bankruptcy Court for the Western District Court of Wisconsin has jurisdiction in the following counties: Adams, Ashland, Barron, Bayfield, Buffalo, Burnett, Chippewa, Clark, Columbia, Crawford, Dane, Douglas, Dunn, Eau Claire, Grant, Green, Iowa, Iron, Jackson, Jefferson, Juneau, La Crosse, Lafayette, Lincoln, Marathon, Monroe, Oneida, Pepin, Pierce, Polk, Portage, Price, Richland, Rock, Rusk, Saint Croix, Sauk, Sawyer, Taylor, Trempe-aleau, Vernon, Vilas, Washburn, Wood.