Blogs
First, let us explain what the definition of Wisconsin worker’s compensation is. In 1911, Wisconsin adopted a Workmen’s Compensation Act. According to the Wisconsin Department of Workforce Development, “Worker’s Compensation is a system of no fault insurance that provides wage replacement and medical benefits to employees for accidental injuries or diseases related to the employee’s work. The intent of the law is to require an employer to promptly and accurately compensate a worker for any injury suffered on the job, regardless of the existence of any fault or whose it might be… In return, the Act limits the amount that a worker can recover. Workers are only entitled to (1) certain wage loss benefits, (2) the cost of medical treatment, and (3) certain disability payments.”
If you have been injured at work and your Wisconsin worker’s compensation benefits are currently your only form of income, you are probably wondering what would happen to your benefits if you filed a Chapter 7 Bankruptcy. Bankruptcy is top of mind when a person has been injured, income has been slashed, and bills are piling up. You’re not alone in this line of thinking. Below are a few facts regarding Wisconsin worker’s compensation and Chapter 7 Bankruptcy.
1. You must choose whether to use state or federal exemptions in your bankruptcy. In Wisconsin, you may use either the Wisconsin state exemptions or the federal bankruptcy exemptions. You cannot mix and match federal and state exemptions. However, if you use Wisconsin’s state exemptions, there are a few federal ‘non-bankruptcy’ exemptions that you can use in addition to your Wisconsin exemptions. Consult with your experienced Chapter 7 Bankruptcy Attorney for assistance.
2. In Wisconsin, worker’s compensation benefits are considered income on the “means test” that determines whether you qualify for a Chapter 7 Bankruptcy.
3. Wisconsin worker’s compensation benefits are not considered an asset when filing a Chapter 7 Bankruptcy.
4. Wisconsin workers’ compensation is 100% exempt from confiscation during a Chapter 7 Bankruptcy. Wis. Stat. Ann. § 102.27, which reads:
“102.27 Claims and awards protected; exceptions.
(1) Except as provided in sub. (2), no claim for compensation shall be assignable, but this provision shall not affect the survival thereof; nor shall any claim for compensation, or compensation awarded, or paid, be taken for the debts of the party entitled thereto.
(2)
(a) A benefit under this chapter is assignable under s. 46.10 (14) (e), 49.345 (14) (e), 301.12 (14) (e), 767.225 (1) (L), 767.513 (3), or 767.75 (1) or (2m).
(b) If a governmental unit provides public assistance under ch. 49 to pay medical costs or living expenses related to a claim under this chapter and if the governmental unit has given the parties to the claim written notice stating that the governmental unit provided the assistance and the cost of that assistance, the department or the division shall order the employer or insurance carrier owing compensation to reimburse that governmental unit for the amount of assistance the governmental unit provided or two-thirds of the amount of the award or payment remaining after deduction of attorney fees and any other fees or costs chargeable under ch. 102, whichever is less. The department shall comply with this paragraph when making payments under s. 102.81.
NOTE: Par. (b) is shown as amended eff. 1-1-16 by 2015 Wis. Act 55. Prior to 1-1-16 it reads:
(b) If a governmental unit provides public assistance under ch. 49 to pay medical costs or living expenses related to a claim under this chapter, the employer or insurance carrier owing compensation shall reimburse that governmental unit any compensation awarded or paid if the governmental unit has given the parties to the claim written notice stating that it provided the assistance and the cost of the assistance provided. Reimbursement shall equal the lesser of either the amount of assistance the governmental unit provided or two-thirds of the amount of the award or payment remaining after deduction of attorney fees and any other fees or costs chargeable under ch. 102. The department shall comply with this paragraph when making payments under s. 102.81.
History: 1981 c. 20, 391; 1983 a. 27, 192; 1985 a. 83; 1989 a. 64; 1993 a. 481; 1997 a. 191, 237; 1999 a. 9; 2005 a. 443 s. 265; 2007 a. 20; 2015 a. 55.”
Contact An Experienced Wisconsin Worker’s Compensation Attorney
If you are in the middle of a worker’s compensation claim or are already receiving Wisconsin worker’s compensation benefits, contact Wynn at Law, LLC when considering a bankruptcy filing. Wisconsin bankruptcy laws are very complex and there are always exemptions to the rules. Our knowledgeable Chapter 7 bankruptcy attorney offers a free initial consultation. Set your mind at ease, by receiving answers to all of your important questions concerning Wisconsin worker’s compensation benefits and Chapter 7 Bankruptcy. Contact Wynn at Law, LLC to schedule your free consultation. You can reach us by phone at 262.725.0175 or by eMail via our website’s contact page. Wynn at Law, LLC has bankruptcy offices located in Salem, Muskego, Delavan, and Lake Geneva, Wisconsin.
Find out if you qualify for bankruptcy.
Click Here to Get a Free Bankruptcy Assessment
from Wynn at Law, LLC
.
It’s Free. It’s Easy.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
On January 18, 2015, Fox Rothschild's Delaware Bankruptcy Litigation blog published a post "Caesars Bankruptcy: Illinois Bankruptcy Proceeding Stayed by Delaware Bankruptcy Court".
The article reviews a situation where creditors filed a petition for an involuntary chapter 11 bankruptcy on January 12, 2015 against Caesars Entertainment in the Bankruptcy Court in Delaware and then three days later Caesars Entertainment filed a voluntary chapter 11 case in the Bankruptcy Court of the Northern District of Illinois.
The Delaware Bankruptcy Court referred to this as a situation of "parallel proceedings." In its January 15, 2015 order, the Delaware Bankruptcy Court ordered that the proceedings in the Illinois Bankruptcy case be stayed, except for certain first day motions, pending "issuance of an order determining, if necessary, the venue in which the Debtor's chapter 11 case shall proceed."
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
On January 18, 2015, Fox Rothschild's Delaware Bankruptcy Litigation blog published a post "Caesars Bankruptcy: Illinois Bankruptcy Proceeding Stayed by Delaware Bankruptcy Court".
The article reviews a situation where creditors filed a petition for an involuntary chapter 11 bankruptcy on January 12, 2015 against Caesars Entertainment in the Bankruptcy Court in Delaware and then three days later Caesars Entertainment filed a voluntary chapter 11 case in the Bankruptcy Court of the Northern District of Illinois.
The Delaware Bankruptcy Court referred to this as a situation of "parallel proceedings." In its January 15, 2015 order, the Delaware Bankruptcy Court ordered that the proceedings in the Illinois Bankruptcy case be stayed, except for certain first day motions, pending "issuance of an order determining, if necessary, the venue in which the Debtor's chapter 11 case shall proceed."
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
On January 18, 2015, Fox Rothschild's Delaware Bankruptcy Litigation blog published a post "Caesars Bankruptcy: Illinois Bankruptcy Proceeding Stayed by Delaware Bankruptcy Court".
The article reviews a situation where creditors filed a petition for an involuntary chapter 11 bankruptcy on January 12, 2015 against Caesars Entertainment in the Bankruptcy Court in Delaware and then three days later Caesars Entertainment filed a voluntary chapter 11 case in the Bankruptcy Court of the Northern District of Illinois.
The Delaware Bankruptcy Court referred to this as a situation of "parallel proceedings." In its January 15, 2015 order, the Delaware Bankruptcy Court ordered that the proceedings in the Illinois Bankruptcy case be stayed, except for certain first day motions, pending "issuance of an order determining, if necessary, the venue in which the Debtor's chapter 11 case shall proceed."
Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com
On January 18, 2015, Fox Rothschild's Delaware Bankruptcy Litigation blog published a post "Caesars Bankruptcy: Illinois Bankruptcy Proceeding Stayed by Delaware Bankruptcy Court".
The article reviews a situation where creditors filed a petition for an involuntary chapter 11 bankruptcy on January 12, 2015 against Caesars Entertainment in the Bankruptcy Court in Delaware and then three days later Caesars Entertainment filed a voluntary chapter 11 case in the Bankruptcy Court of the Northern District of Illinois.
The Delaware Bankruptcy Court referred to this as a situation of "parallel proceedings." In its January 15, 2015 order, the Delaware Bankruptcy Court ordered that the proceedings in the Illinois Bankruptcy case be stayed, except for certain first day motions, pending "issuance of an order determining, if necessary, the venue in which the Debtor's chapter 11 case shall proceed."
Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com
According to an article in the Wall Street Journal, Money Beat, a new FICO credit score designed by Fair Isaac Corp.FICO +1.65% (FICO XD) is intended for those who have not been able to access financing due to their traditional credit score. This could those new to the credit system, like new graduates. The score will use data from: timely payment of cable, cellphone and utility bills. A full roll-out of this new credit scoring system is expected early in 2016.
New data not yet published by FICO show that the new score, called FICO XD, could help more consumers get approved for credit cards than the company previously thought. FICO found that 55% to 60% of credit-card applicants it reviewed now have the new XD score even though they were previously unscorable. FICO had estimated earlier that only about one-third of the credit-card applicants would get the new score.
Why this new credit scoring system? Because the lenders want to encourage as many people as possible to use credit, even if it extends that person beyond their means.
There are a few reasons for this new scoring system. This will allow those who have had a foreclosure or bankruptcy the ability to build credit. It will also open the door for new entrants to the credit system – students and those moving into the job market.
Between 35% to 50% of credit-card applicants who are now scorable have an XD score higher than 620, a minimum threshold that some credit-card issuers require for approval. The XD score runs from 300 to 850, the same range as traditional FICO scores, and a 620 on the XD scale equals a traditional FICO score of 620, says Jim Wehmann, executive vice president of scores at FICO.
Borrowers with an XD score who receive a credit card and pay their bills on time for at least six months will then receive regular FICO scores, making it easier to get other types of loans including mortgages.
Credit is like a medication. It is beneficial if used properly, but it is disastrous if used improperly. High schools and families rarely teach the young how to use credit. Instead, most of us leave the young to swim without a life preserver. They do their best, but do not realize that the lenders are like sharks, waiting 
in the shallows to pray on the innocent and naive. TV teaches our young that success equals fancy possessions, like overpriced cars and houses. No one teaches the goal of financial security.
Enough of my soap box. I challenge each of you to learn how “to use credit rather than credit using you”. Go forth and learn. Trust your common sense and not someone who is poised to make money from your innocent mistakes (over draft bank fees, late fees for loans, excessive interest on credit cards).
The post New FICO Score Opens Door for Many Could Not Qualify in the Past appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
According to an article in the Wall Street Journal, Money Beat, a new FICO credit score designed by Fair Isaac Corp.FICO +1.65% (FICO XD) is intended for those who have not been able to access financing due to their traditional credit score. This could those new to the credit system, like new graduates. The score will use data from: timely payment of cable, cellphone and utility bills. A full roll-out of this new credit scoring system is expected early in 2016.
New data not yet published by FICO show that the new score, called FICO XD, could help more consumers get approved for credit cards than the company previously thought. FICO found that 55% to 60% of credit-card applicants it reviewed now have the new XD score even though they were previously unscorable. FICO had estimated earlier that only about one-third of the credit-card applicants would get the new score.
Why this new credit scoring system? Because the lenders want to encourage as many people as possible to use credit, even if it extends that person beyond their means.
There are a few reasons for this new scoring system. This will allow those who have had a foreclosure or bankruptcy the ability to build credit. It will also open the door for new entrants to the credit system – students and those moving into the job market.
Between 35% to 50% of credit-card applicants who are now scorable have an XD score higher than 620, a minimum threshold that some credit-card issuers require for approval. The XD score runs from 300 to 850, the same range as traditional FICO scores, and a 620 on the XD scale equals a traditional FICO score of 620, says Jim Wehmann, executive vice president of scores at FICO.
Borrowers with an XD score who receive a credit card and pay their bills on time for at least six months will then receive regular FICO scores, making it easier to get other types of loans including mortgages.
Credit is like a medication. It is beneficial if used properly, but it is disastrous if used improperly. High schools and families rarely teach the young how to use credit. Instead, most of us leave the young to swim without a life preserver. They do their best, but do not realize that the lenders are like sharks, waiting 
in the shallows to pray on the innocent and naive. TV teaches our young that success equals fancy possessions, like overpriced cars and houses. No one teaches the goal of financial security.
Enough of my soap box. I challenge each of you to learn how “to use credit rather than credit using you”. Go forth and learn. Trust your common sense and not someone who is poised to make money from your innocent mistakes (over draft bank fees, late fees for loans, excessive interest on credit cards).
The post New FICO Score Opens Door for Many Could Not Qualify in the Past appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
The Ninth Circuit has now held that a debtor who sues for damages with respect to a violation of the automatic stay may recover the reasonable fees it incurs prosecuting the action, even after the stay violation is cured.
The Section 362 of the Bankruptcy Code’s includes a fee recovery clause: “An individual injured by any willful violation of a stay provided by this section shall recmover actual damages, including costs and attorneys’ fees.” Up until now, the 9th Circuit, in contrast to every other court held that section 362(k) allowed a debtor to recover only those fees incurred to end the stay violation itself, not the fees incurred to prosecute an action for damages. Of course this rule was of little help in combatting stay violations because most attorney fees for stay violations are incurred after the stay violation has ended. Debtors who wished to hold creditors accountable were forced to foot the bill. Now, at long last, debtors who previously lacked any real financial incentive to pursue damages for stay violations may now be more willing to bring those actions.
Please contact our office immediately, if you feel that your protections under the automatic stay provision has been violated.
The original post is titled Practical Improvement to Automatic Stay for Oregon and Washington Debtors , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
So what is a Zombie home? Have you seen homes sitting empty and abandoned for months or years? You have probably seen a Zombie home. The owner made a very difficult decision to abandon the home. The mortgages on the property far exceed its fair market value; meaning there is no equity in the home. In many situations the owner cannot afford to keep the mortgages current or maintain the property to keep it in good condition. The owner may abandon the home and move to another property or to live in the property until the lender forecloses. Even if the lender will agree to take less than the debt it is still impossible to sell the property because of the condition. End result – Zombie home.
Even though the owner abandons the home this does not relieve them of personal liability. The owner may have personal liability to someone who is injured on their property. The owner can be cited by the local municipality for failure to maintain the property. If there is a homeowner’s association the owner is most likely personally liable for homeowner’s dues and assessments.
Lenders may not start a timely foreclosure for many reasons. They may have too many properties in foreclosure in that area and are reluctant to put another property into foreclosure. The lender may be concerned about taking on the ownership responsibility of an abandoned home in poor condition. Detroit and other cities are faced with entire neighborhoods that are abandoned. These properties become areas of increased crime which add to the burden of the city’s public resources.
Recently there has been a move to use the bankruptcy process to take a run at this problem. A few creative bankruptcy attorneys are using the chapter 13 process to transfer ownership of the property to the secured lender with the confirmation of the chapter 13 plan. See In Re Stewart, 2015 Bankr. LEXIS 2948; 536 B.R. 273. Minnesota); In Re Zair, 235 B.R. 15 (E.D. N.Y. 2015), In re Rosa, 495 B.R. 522.)
This is a creative idea, but as of this writing has not been dealt with at the 9th Circuit. These cases profile courts’ frustration with lender’s failure to take reasonable and timely action to either foreclose on the property or forgive the secured debts.
Excerpts from Nebraska Debt and Bankruptcy Blog, By Sam Turco on October 6, 2015 Posted in Chapter 13 Foreclosure
The post Zombie Homes – Abandoned, Pre-Foreclosure Properties appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
You’ve heard about certain jobs that allow you to qualify for student loan forgiveness after a period of repayment. But how about just having the federal government pay your federal student loans for you?
No joke. Under a little known program called the Federal Student Loan Repayment Program, some agencies will actually pay your loans for you as a way to get you to take a job or remain in a particular position.
In fact, in 2014 there were 33 Federal agencies that provided 8,469 employees with a total of more than $58.7 million in student loan repayment benefits. That’s an average of $6,931 paid per employee.
Eligibility for the Program
Under federal law, agencies are allowed to set up their own student loan repayment programs to attract or retain highly qualified employees.
Any employee is eligible to participate in the Federal Student Loan Repayment Program, except those occupying a position excepted from the competitive civil service because of their confidential, policy-determining, policy-making, or policy-advocating nature.
Though the law says that the program is for, “highly qualified employees,” each agency gets to decide what that means. There’s no specific type of academic degree necessary, and every agency tailor their plans accordingly.
Therefore, an agency may specify the types of degrees and levels necessary to attain this goal.
How the Program Works
Each agency establishes its own plan authorizes a department or person to review and approve offers of student loan repayment benefits.
Though you may be eligible to participate, you aren’t automatically entitled to a student loan repayment just because they’re in a particular job. Each agency has discretionary authority to repay certain types of federally insured student loans as a recruitment or retention incentive.
If your agency allows you to participate then you’ll be required to sign a service agreement that spells out the terms of repayment as well as the length of time you’ll need to remain in the job. If you leave the job before completing the period of service required then you’ll have to reimburse the paying agency for the full amount of the loan repayment benefits provided.
The amount paid by the agency on your behalf is considered additional taxable income.
As a practical matter, this would be something you’d discuss with your employer before you take a particular job. As with any fringe benefit it’s something you can negotiate.
Which Loans Are Eligible?
The program allows for the payment of federally made, insured or guaranteed student loans only. You won’t be able to get your private loans repaid by virtue of the program, but getting those federal loans paid will leave you with more money available to use towards the private loans.
Loans eligible for payment are those made, insured, or guaranteed under parts B, D, or E of title IV of the Higher Education Act of 1965 or a health education assistance loan made or insured under part A of title VII or part E of title VIII of the Public Health Service Act.
Loans made or insured under the Higher Education Act of 1965 include the following:
Federal Family Education Loans (FFEL)
- Subsidized Federal Stafford Loans
- Unsubsidized Federal Stafford Loans
- Federal PLUS Loans
- Federal Consolidation Loans
William D. Ford Direct Loan Program (Direct Loans)
- Direct Subsidized Stafford Loans
- Direct Unsubsidized Stafford Loans
- Direct PLUS Loans
- Direct Subsidized Consolidation Loans
- Direct Unsubsidized Consolidation Loans
Federal Perkins Loan Program
- National Defense Student Loans (made before July 1, 1972)
- National Direct Student Loans (made between July 1, 1972, and July 1, 1987)
- Perkins Loans (made after July 1, 1987)
Loans made or insured under the Public Health Service Act include the following:
- Loans for Disadvantaged Students (LDS)
- Primary Care Loans (PCL)
- Nursing Student Loans (NSL)
- Health Professions Student Loans (HPSL)
- Health Education Assistance Loans (HEAL)
How Much of Your Loans Will the Agency Pay?
Remember, we’re not talking about Public Service Loan Forgiveness. This is an actual payment of your federal student loan made by a Federal agency that employs you. Therefore, there’s a limit of how much the agency will pay.
Each agency sets its own rules for repayment of loans through theFederal Student Loan Repayment Program, so it will differ from agency to agency. By law, each agency may made payments of up to a maximum of $10,000 for an employee in a calendar year and a total of not more than $60,000 for any one employee.
An agency may agree to make payments on those student loans taken out prior to the student loan repayment agreement, so any loans you take out once the agreement is signed aren’t going to be paid.
Given the fact that the federal student loan limit is currently set at $57,500 for undergraduates and $138,500 for those who have graduate or professional studies, those repayment limits can come in handy.
How Long You Need to Work
You need to work at the agency for as long as the agreement says – once again, each agency has its own program requirements.
Periods of leave without pay, or other periods during which the employee is not in a pay status, do not count toward completion of the required service period. The service completion date must be extended by the total amount of time spent in non-pay status.
However, federal regulations allows absence because of uniformed service or compensable injury to be considered creditable toward the required service period upon reemployment.
Agencies Offering Student Loan Repayment
According to government reports, here are some of the 33 federal agencies that offer student loan repayment programs:
- Department of Defense (DOD)
- Department of Justice (DOJ)
- Department of State (DOS)
- Securities and Exchange Commission (SEC)
- Department of Veterans Affairs (VA)
- Department of Health and Human Services (HHS)
- Government Accountability Office (GAO)
- Department of the Interior (DOI)
- Department of Housing and Urban Development (HUD)
- Department of Commerce
- Department of Energy
- Department of Transportation
- Department of Treasury
- Federal Energy Regulatory Commission
A Good Argument for Government Employment
Federal government benefits are the best there are, and retirement plans are terrific.
Federal student loans come with Public Service Loan Forgiveness after 10 years of timely payments made while employed full time with the government (among other employers). But if you’ve got $60,000 or less in federal student loans outstanding and can get into this program, your payments effectively go away immediately.
You’ve got to work anyway, so why not consider Uncle Sam as your employer of choice?
The post How to Get the Federal Government to Pay Your Student Loans appeared first on Shaev & Fleischman LLP.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.