• Wisconsin law gives creditors the option to approve or reject a Chapter 13 bankruptcy plan.money, money, money image by easaab from Fotolia.com
  
  Chapter 13 bankruptcy is often the last resort of homeowners and small business entrepreneurs who are drowning in increasing mortgage payments or business debts. Bankruptcy law in Wisconsin allows these individuals to file for restructuring of debt so that payments can still be made to creditors, and assets retained, while repayment is taking place.
  
  

Requirements to File

• Only individuals and unincorporated businesses may file for Chapter 13 bankruptcy in Wisconsin. You will also need a stable income that exceeds your basic necessities such as food, shelter and clothing. Total debts cannot exceed $1,010,650 in secured debts, such as property loans, and $336,900 in unsecured debts like credit cards. You must also have legal representation to assist with the documents required for Chapter 13 bankruptcy. Any error in these documents could result in your filing being denied.
  
  

Proposed Payment Plan

• Your Chapter 13 bankruptcy approval hinges on presenting a payment plan to the court that will successfully pay down your debt over a period of three to five years. According to the website for Wisconsin bankruptcy attorney Gordon S. Johnson Jr., your payment plan must provide for priority claims such as taxes and carefully delineate how every penny that's available to you will be allocated toward debt payment and living expenses, along with how your income will be generated.
  
  

The Bankruptcy Trustee

• Once a bankruptcy proposal has been approved, a bankruptcy trustee is put in charge of managing your accounts and payments. All payments to your creditors are made to the trustee, who then makes the payments to your creditors. Since you get to keep your assets, like your home, in Chapter 13 bankruptcy, it is essential that the monthly payments are made on time to the trustee so your creditors are kept happy and you stay away from default. Once you complete the repayment period, as approved by the court, your remaining debts are discharged.