Legal Question in Credit and Debt Law in Wisconsin

Both Wisconsin law and federal law allow debtors to claim certain assets which are deemed necessities of life as "exemptions," meaning that if a creditor seizes it for collection of a debt, they can get it back. They can also stop the seizure in advance if they claim the exemption early enough. The best forum in which to claim exemptions is usually bankruptcy, but they can also sometimes be claimed outside of bankruptcy. Wisconsin, for example allows a $2,000 exemption on equity (above any loan security claim) in a vehicle, as well as $5,000 for home furnishings and other personal possessions. Any unused portion of the $5,000 can also be claimed against a vehicle. The upshot of all this is that the creditor cannot resell the vehicle or other seized asset unless he can get enough to cover all liens, security interests and sale expenses, plus 100% of any claimed exemption. You should therefore proceed cautiously when attempting to collect from persons oof modest means in WI, since your efforts may be in vain, or, at worst, illegal if they violate valid exemption claims. I would instead recommend that you retain an experienced collection attorney who will be familiar with all of these restrictions. He or she may tell you that it is not worth the attempt in many cases. My comments here are not legal advice, nor do they create an attorney client relationship between us. However, you are welcome to contact my office to discuss retaining me or to set up a free initial consultation at my office in Racine.