The Wisconsin Legislature passed and the Governor recently signed a new bill that changes the exemption limits on key items of personal and real property for Wisconsin consumers making it easier to protect your property from creditors.
Key provisions of the new law include:
- Increase the homestead exemption from $40,000 to $75,000;
- Increase the business/farm property exemption from $7,500 to $15,000 and add a provision to exempt debtor’s interest in a closely held business entity;
- Increase the consumer goods exemption from an aggregate of $5,000 to an aggregate of $12,000;
- Increase the motor vehicle exemption from $1,200 to $4,000;
- Increase the depository exemption from $1,000 to $5,000; and
- Increase the personal injury award exemption from $25,000 to $50,000 and clarify that it is per claim.
The new law becomes effective December 16, 2009 and could change how someone in financial distress looks at their options – both bankruptcy and non-bankruptcy.
The most dramatic change in the bill is the increase for the equity in a homestead that can be protected. Under previous law, the most equity that could be protected was $40,000.00. Under the new law, that limit goes up to $75,000.00 – but it now applies to each debtor – so that a husband and wife can now protect $150,000.00. In today’s economy of depressed home values, bankruptcy may now be an option to many couples that previously thought they would loose their homestead due to the equity in the property.
Choosing state over federal exemptions is not without some risk and you should consult an experienced bankruptcy attorney for all your options. If you would like to meet with one of our bankruptcy attorneys, please call 414-727-0123 for a no obligation consultation.
