Legal Question in Bankruptcy in Wisconsin

Bankruptcy of One Spouse Only Can Stop Foreclodure: True or False?

Although I cannot advise you in this matter unless I represent you, as a general matter, a bankruptcy filing stays any litigation against property of the debtor, even if the debtor has only a 1/2 interest. Unless you have a plan to catch up the loan and continue payments, however, any relief will be short lived, since the bank will ask the bankruptcy court for permission to proceed with the foreclosure, which request will generally be granted within 30-60 days. If your repayment plan is realistic, however, and assuming that you make all required payments, it is possible to reinstate the loan and retain the home. You need to retain your own attorney as soon as possible. The answer to your question could therefore potentially be "True," you can potentially still benefit from a single spouse bankruptcy in WI. However, there can also be significant drawbacks to a "single spouse filing," including an inability of a nonfiling spouse to claim exemptions (which may or may not be much of a problem, depending upon the net value of your marital assets). Responding to your question about credit, bankruptcy is the worst possible entry to have in your credit file. However, foreclosures and collection activity in general is almost as bad, so the net harm of bankruptcy to your credit may be less than you think. My clients often report nearly normal credit within a year or two of a bankruptcy discharge, provided that they don't get into new financial problems and have a steady income which is great enough to sustain new debt.