Find Bankruptcy Lawyers Near You in Madison, WI

The typical cost of hiring a bankruptcy lawyer in Madison, Wisconsin, includes both the court filing fee and the attorney fee. For a Chapter 7 case, the court filing fee is $338, and attorney fees generally range from $1,200 to $2,500. For a Chapter 13 case, the filing fee is $313, and attorney fees are higher, typically between $3,000 and $5,000, due to the complexity of preparing a repayment plan and attending multiple hearings over several years. Many law firms offer payment plans, allowing debtors to pay attorney fees in installments before filing, and the court may approve installment payments for the filing fee.

This information is general and does not constitute legal advice. Bankruptcy laws and fee structures can change, and individual circumstances vary. You should consult with a qualified bankruptcy attorney in Madison to discuss your specific situation and obtain accurate cost estimates.

Bankruptcy practice in Madison, Wisconsin, serves individuals and businesses facing overwhelming debt. The three primary chapters under the U.S. Bankruptcy Code are Chapter 7, Chapter 13, and Chapter 11. Chapter 7, known as liquidation, discharges most unsecured debts like credit cards and medical bills in exchange for non-exempt assets being sold by a trustee. This chapter is typically appropriate for individuals with limited income and few assets. Chapter 13, or reorganization, allows debtors with regular income to propose a three-to-five-year repayment plan to catch up on secured debts like mortgages or car loans while keeping all property. It is often chosen by those who earn too much to qualify for Chapter 7 or who want to protect non-exempt assets. Chapter 11 is primarily for businesses, including sole proprietorships, seeking to restructure debts and continue operations, though it is less common for individuals in Madison.

Wisconsin law requires debtors filing for bankruptcy to use state-specific exemptions rather than the federal exemption system. The Wisconsin homestead exemption protects up to $75,000 of equity in a primary residence, or $150,000 for married couples filing jointly, provided the property is at least 40 acres or located within a recorded subdivision. For vehicles, Wisconsin allows a $4,000 exemption per person, plus any additional amount under the wildcard exemption if the vehicle is not fully covered. The Wisconsin wildcard exemption is $10,000 of any property, including cash or household goods, under Wisconsin Statute Section 815.18. Other notable state exemptions include $5,000 for household goods and furnishings, $3,000 for tools of the trade, and unlimited exemptions for retirement accounts like 401(k)s and IRAs, as long as they are tax-qualified. These exemptions are crucial for Madison residents to understand, as they determine what property a trustee can seize and sell to pay creditors.

The means test is a critical calculation that determines eligibility for Chapter 7 bankruptcy. For cases filed in Wisconsin, the debtor must compare their current monthly income over the six months before filing to the state median income for their household size. As of 2025, the median annual income for a single-person household in Wisconsin is approximately $65,000, for a two-person household $82,000, for a three-person household $98,000, and for a four-person household $115,000. If the debtor’s income is below the median, they automatically pass the means test and qualify for Chapter 7. If income exceeds the median, a more detailed calculation of disposable income is required, subtracting allowed living expenses under IRS standards. If the resulting disposable income over five years is less than $8,175, the debtor still qualifies for Chapter 7; if it exceeds $13,650, they are presumed to abuse the system and must file Chapter 13 instead. Madison residents with high medical bills or other special circumstances may still qualify for Chapter 7 through a showing of “special circumstances.”

Filing for bankruptcy in the Western District of Wisconsin, which covers Madison, triggers an automatic stay that immediately stops all creditor collection actions, including phone calls, wage garnishments, foreclosure sales, and lawsuits. The automatic stay remains in effect until the case is closed or dismissed, or until the court grants relief to a creditor. From the filing date, a typical Chapter 7 case takes about four to six months to receive a discharge, which is the court order eliminating most debts. Chapter 13 cases last three to five years, with the discharge issued after the debtor completes all plan payments. Before filing, every debtor must complete a mandatory credit counseling course from an approved agency within 180 days before filing. After filing, but before receiving a discharge, the debtor must complete a debtor education course on financial management. Both courses are available online or by phone, and costs range from $10 to $50 per course. Failure to complete either course can result in case dismissal.

The costs of bankruptcy in Madison include court filing fees and attorney fees. The federal filing fee for Chapter 7 is $338, and for Chapter 13 it is $313, as set by the U.S. Bankruptcy Court. These fees are non-refundable and can be paid in installments with court approval, though the full amount must be paid before the discharge. Attorney fees in Madison for a straightforward Chapter 7 case typically range from $1,200 to $2,500, depending on the complexity of the debtor’s assets and income. Chapter 13 attorney fees are higher, often between $3,000 and $5,000, because the attorney must prepare a repayment plan and attend multiple court hearings over several years. Many law firms in Madison offer payment plans for their fees, allowing debtors to pay in installments before filing. For those with very low income, pro bono resources are available through Legal Action of Wisconsin, which provides free bankruptcy assistance to qualifying individuals, and the Western District of Wisconsin Bankruptcy Court maintains a list of approved pro bono attorneys.

Life after bankruptcy requires patience and strategic planning. A Chapter 7 discharge stays on a credit report for ten years from the filing date, while a Chapter 13 discharge remains for seven years. During this time, rebuilding credit is possible through secured credit cards, credit-builder loans, and making all payments on time. Most debtors see their credit scores improve within one to two years after discharge as old negative accounts are removed. However, not all debts are dischargeable. Student loans generally survive bankruptcy unless the debtor can prove undue hardship through a separate adversary proceeding, which is rarely granted. Recent tax debts may be dischargeable if they are more than three years old, the tax return was filed at least two years before filing, and the tax was assessed at least 240 days before filing. Child support, alimony, and most fines and penalties for breaking the law are never dischargeable. Madison residents should also note that debts incurred through fraud or willful injury are not dischargeable. Understanding these limitations is essential for making an informed decision about whether bankruptcy is the right path.