If you are in the Milwaukee-Waukesha-Germantown-Kenosha area and would like to learn how to get a fresh start, call Miller and Miller today!

These citizens have critical questions about the bankruptcy process:

“Can I keep my car?”

“Do my husband and I both need to file?”

“Will my child support arrearage be discharged?”

Many turn to bankruptcy petition preparers for those answers and pay $100 to $250 to get them. But most do not realize that petition preparers are simply typists. They are not trained in the law and do not know the answers to the questions that debtors need to ask.

Some preparers answer the questions anyway, often giving the wrong information.

Some take the debtors’ money but do not complete the papers or do not file the papers or do not file the correct papers.

Milwaukee’s bankruptcy judges have grown weary of being forced to dismiss cases because the debtor paid money he or she did not have to a petition preparer who gave the debtor the wrong information, did not file all of the required documents or filled out the documents incorrectly.

People who consider filing for bankruptcy already are hurting, without losing precious dollars to someone who cannot give them the advice they need.

To make it clear that the law does not allow petition preparers to give legal advice, and that they are not qualified to do so, the Milwaukee judges have established a new policy: Beginning Jan. 1, a petition preparer may charge only $75 for completing bankruptcy papers.

If the preparer is following the law, simply filling out the papers without giving legal advice, $75 is a reasonable price for that service. If a debtor needs more than typing services – and most debtors do – the bankruptcy court has a Help Desk, where from 9 a.m. to 10:30 a.m. every Thursday morning, bankruptcy lawyers will answer questions and help debtors with their paperwork.

And it’s free of charge.

Pamela Pepper is chief judge of the U.S. Bankruptcy Court for the Eastern District of Wisconsin, sitting in Milwaukee.

Four Wisconsin cities – including Wausau at No. 1 – are among the 10 communities in the nation with the highest average credit scores, a new survey shows.

Wausau residents posted an average credit score of 789 in the survey conducted by the credit-rating agency Experian. Madison was third, at 785; Green Bay sixth, at 780; and La Crosse 10th, at 777.

Milwaukee, with a score of 765, was 33rd of 143 cities included in the survey.

“Wisconsin residents remain among the nation’s most fiscally responsible,” Experian stated Tuesday in announcing the survey results.

Higher credit scores generally give consumers the ability to borrow money at lower interest rates.

Credit scores are based on a consumer’s payment history, debt balances and several other factors. Among those factors are how much of a person’s available credit is used, how long a person has had credit and whether late payments have occurred recently.

Wausau unseated Minneapolis, with the Minnesota city slipping to second in the annual survey with a 787 average credit score.

Rose Oswald Poels, chief executive of the Wisconsin Bankers Association, wasn’t surprised by the survey’s findings.

“The consumers in this state are generally very conservative with their money and smart about credit decisions, and that’s true of the financial institutions that serve those citizens,” Oswald Poels said. “I think it’s just the combination of the types of values and people we have in this state, coupled with the type of financial institutions that we have. We both share similar values in being fiscally conservative, hardworking and smart about credit.”

An executive with Wausau-based Peoples State Bank said he’s noticed before that many of the bank’s customers bring credit scores higher than 700.

“I think people here were raised in a conservative fashion, and they live the way their parents do,” said John Proulx, senior vice president for Peoples State Bank. “I think that probably is a big reason as to why we have the good scores.”

Overall, the survey found that Midwesterners have the highest credit scores while Southerners have more financial struggles.

Experian said that while no one factor determines a consumer’s credit score, the weak economy continues to cause major setbacks, such as foreclosures and unemployment. Those troubles were drivers in the rankings and trends for different regions of the country, the firm said.

Of the cities with top 10 credit scores, only San Francisco had a jobless rate higher than the national rate. Texas had four cities in the bottom 10.

The credit scores in the report were based on the VantageScore scoring system, which has a range from 501 to 990, in designated market areas from January through June of 2011, Experian said. The analysis was based on a statistically relevant sampling of Experian’s consumer credit database, the firm said.

“We have our issues just like any other city does. We have some foreclosures and things like that, but probably not as much as some of the other areas do,” Proulx said. “So some of that doom and gloom has hit Wausau, but it’s maybe not as prevalent in this area.”

Wausau Mayor James Tipple was proud of the ranking for his city, which has a population of 41,800.

“I think the quality of life and the people we attract to the region, and not only the region but the city of Wausau, speaks volumes for the score,” Tipple said.

This issue can sometimes be very confusing.  For that reason we always suggest you set up a free consultation with one of our lawyers a Miller & Miller.   There is never a charge for an initial consultation and we are happy to meet with you to discuss all of your options.

James Miller

jmiller@millermillerlaw.com

414-277-7742

This brings to mind the client who comes to my office and tells me that even though they are hopelessly in debt, they are worried about filing a bankruptcy because their credit score is still high.  I always remind these clients that your credit score is supposed to be one of many barometers of your financial health, not an absolute indication of financial health.  Unfortunately, many people are encouraged to misuse credit based upon the erroneous assumption that all is well because their credit score is still above 700, and they slowly fall into financial hardship. 

The definition of financial health includes living within a budget, controlling debt, using credit responsibly, working towards short and long-term financial goals, and saving.  It is challenging to manage any of these things when you are struggling to make minimum payments on your monthly obligations. 

The federal bankruptcy laws provide a solution for those who are overwhelmed with debt.  Bankruptcy can restructure or eliminate certain debts while protecting assets like your car, your home, and your 401(k).  If you have more debt than you can handle, and feel like you aren’t getting ahead, don’t be fooled by a high credit score.  It might be time to consult with one of the experienced attorneys at Miller and Miller, who can advise you of your options on how to get back on the road to financial health.

A Chapter 13 bankruptcy is most often an
income-based repayment plan. Your creditors are split up
into categories, so that secured creditors, like mortgage
holders and car note holders, get close to or exactly what
they are owed. But your unsecured creditors, like credit
cards, medical bills and late utility amounts, get a
percentage of what you owe them based on your income and
what you can afford.

A Chapter 13 is not strictly debt consolidation. It is a bankruptcy, which lets you pay for the things you want to keep, such as your home or car, while often paying much less to other creditors. In this way, you can afford to be in the bankruptcy, save your home or car,
and get a discharge of your other debts after completing the
plan. This should be balanced against continuing to pay
minimums on credit cards, with interest, for five years, to
see how a Chapter 13 bankruptcy can benefit even higher
income debtors or debtors who have previously filed a
Chapter 7 bankruptcy within the past eight years.