Legal Question in Bankruptcy in Wisconsin

Generally speaking, once a WI bank forecloses on a property here, they will place their own insurance any time that the homeowners� insurance is canceled. This policy, however, only insures the bank and not you, the homeowner. You could therefore incur both fire and hazard claims as well as liability claims in relation to the home which could lead to personal lawsuits against you by the injured party. The foreclosing banks almost never pursue the homeowner directly for balances owed on the mortgage following foreclosures in WI. That is, they nearly always opt to settle for the property only, because the law allows them to get possession more quickly if they select that option. However, if they or any persons injured on the property did pursue you personally for money, you would generally be able to discharge such a claim in bankruptcy, as long as you are otherwise eligible for a bankruptcy. Things which could make you ineligible for a bankruptcy might include already have filed on less than eight years in the past. If you are interested in saving your home, a chapter 13 bankruptcy can stop a foreclosure and allow you to resume payments, eventually reinstating your loan if you follow through. You should therefore at least consult with an experienced bankruptcy lawyer. My comments in this public web forum are intended only for public educational purposes and not as legal advice for you. You therefore should retain your own attorney as soon as possible. However, you are also welcome to contact me at my office in Racine if you wish to discuss this matter further.