Legal Question in Credit and Debt Law in Wisconsin

Yes, unless you protect yourself by retaining an experienced bankruptcy attorney, the car lender from Arkansas will no doubt take a judgment against you if the debt is in default. Once a judgment is entered, it is nearly impossible to reopen, regardless of how weak the original contract may have been (such as not being properly signed). In other words, a creditor with judgment for a bad claim can do just as much to you as a creditor with a good claim, including garnishment of 25% of net wages, a lien upon any real estate you own in counties where the judgment is docketed, and the ability to seize assets to satisfy the debt. Although you may have technical defenses to the contract claim against you which may be worth pursuing, the cheapest way by far to defend against creditor claims in usually a bankruptcy. In WI, even after filing a bankruptcy, a married couple is entitled to keep up to $150,000 in equity in their home, personal property and furnishings worth up to $10,000, up to $15,000 in business property, $10,000 in bank accounts, and the list goes on. Federal exemptions allow up to $180000 in cash in addition to a list otherwise fairly similar to WI. These exemptions only help you, however, if they are properly claimed and defended by your lawyer. Otherwise, you are presumed by the law to waive them and the creditors who have judgments can go ahead and take away your property or wages. Since the cost of a consumer chapter 7 is something relative to only around $1500, it is generally well worth the expense for anyone whose debts have gotten out of control. The impact of bankruptcy upon credit is also greatly exaggerated. In fact, most of my bankruptcy client's credit was already ruined before they filed bankruptcy, making the impact of the bankruptcy insignificant. It is also a chance to start over with a new credit record of payments, as soon as two years after conclusion of the bankruptcy for many clients. My comments here are not legal advice, nor do they create an attorney client relationship between us. However, you always more than welcome to contact my office to discuss additional questions which you may have or to set up a free consultation at my office in Racine for further information.