Madison is the capital of the state of Wisconsin. The population of Madison is estimated to be over 200,000 people. Madison bankruptcy attorneys have seen, over the past three years, a rising trend or pattern the popularity of chapter 7 filings. Most Madison bankruptcy attorneys watch these growing trends and use them to predict their potential caseload in the future. Knowing that chapter 7 filings are completely dominant over chapter 13 can be very indicative and telling of a number of things to Madison bankruptcy attorneys.
In 2007, there were a little more than 15,000 total bankruptcy filings in the state of Wisconsin. Of those 15,000 cases, an overwhelming 75% were chapter 7s while only 25% were chapter 13s. In 2008, that number grew to a total of over 21,000 filings. 78% of those people elected to file a chapter 7 while the other 22% went with a chapter 13. In 2009, a little less than 30,000 people filed for bankruptcy. This is nearly double the amount of filings just two years prior. An astounding 81% of those individuals filed for a chapter 7 while the other 13% went with a chapter 13.
In order to truly understand the significance of the disparity between these numbers, you will have to know the difference between the two chapters and what makes one more attractive than another to a particular group of people situation in a specific location.
Chapter 7 generally provides the opportunity to have your debts discharged relatively quickly, usually within a couple of months. Chapter 7 is reserved for people who do not have a lot of assets. These cases are usually simple and less complicated than a chapter 13. While chapter 7 filers do not have to repay their debt, chapter 13 filers are offered flexible payment terms over three to five years and protection of their assets. More chapter 7 filings indicate that filers do not have many assets that require protection or that they are simply unable to repay their accumulated debt.