Q: Will I lose my land or car in WI Chapter 7 bankruptcy filing?

A: Although a Chapter 7 is technically referred to as a liquidation bankruptcy, consultation with a seasoned bankruptcy attorney typically results in there being no liquidation at all. In Wisconsin we get to choose between using the State of Wisconsin or the Federal Bankruptcy Law exemptions to protect your assets. There are many factors to consider when making the choice on which set of exemptions to use. While I can't give you legal advice on this platform, I can say that once you consult with a bankruptcy attorney, you will most likely experience a positive outcome in protecting your land and your vehicle.

A: You should be able to protect both the land and the car. The discharge you receive in Chapter 7 should eliminate your unsecured debt. The student loan debt might be dischargeable, but that will depend upon the facts and you have not provided enough for me to make that assessment.

By coincidence, one of the chapters in my book, Bankruptcy Asked and Answered, is entitled “Will I get to keep my house and car?” The answer in your case should be “yes”

A: Your land and vehicle are likely protected under Wisconsin's exemption system. Wisconsin allows bankruptcy filers to choose between state and federal exemptions, which is a significant advantage when protecting your assets. This choice enables you to select the system that best preserves your property.

Regarding your two acres of land valued at $10,000, you have strong protection options. Wisconsin's homestead exemption covers "a dwelling and as much of the surrounding land as is reasonably necessary to use it as a home, up to 40 acres." While your land might not qualify as a homestead if you don't reside on it, you have alternatives. If using federal exemptions, there is a federal wildcard exemption that can be applied to anything you own up to $1,475, plus an additional $13,950 if you don't use the homestead exemption - more than enough to protect your $10,000 land.

Your $4,000 vehicle is fully protected under Wisconsin law. Wisconsin provides a $4,000 motor vehicle exemption, meaning if the equity in your vehicle is less than or equal to $4,000, you can keep your vehicle in Chapter 7 bankruptcy. Additionally, you may apply unused portions of other exemptions to protect additional vehicle equity if needed.

Regarding your student loans, these typically cannot be discharged in bankruptcy except in rare cases of extreme hardship. However, this debt would not affect your ability to keep your land or vehicle.

The majority of Chapter 7 bankruptcies in Wisconsin are "no-asset" cases, where filers retain all their property. Given your relatively modest property values and the generous exemptions available, you have a strong position to keep your assets through bankruptcy. However, consulting with a bankruptcy attorney familiar with Wisconsin law would be prudent to ensure your specific situation is properly evaluated and all assets are appropriately exempted.