What happens to my aircraft after bankruptcy in Wisconsin?
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Most people use the 11 U.S.C. § 522(d)(2) exemption to cover their aircraft in Wisconsin Chapter 7 bankruptcy cases.
Wisconsin allows the use of federal exemptions. You will have to check whether the state of federal exemption scheme is better for your assets and case. Many people in Wisconsin who don’t own real estate choose the federal exemptions.
Under that scheme, most people use 11 U.S.C. § 522(d)(2) to exempt aircraft in Wisconsin bankruptcy cases.
11 U.S.C. § 522(d)(2) is typically used to cover motor vehicle (one). For single debtors filing, it has a coverage limit of $4,000. If your assets go over this limit, they may be able to be seized by a trustee. This exemption has a limit on the number of assets it can cover.
Here is a list of some statutes available in Wisconsin that are available for filers.
It is worth taking your time on these exemptions. If you do not cover an asset with an exemption in a Wisconsin bankruptcy case, it may be seized by a trustee. If you do not feel comfortable with these decisions and want assistance, read more about exemptions or consider using our free bankruptcy help.
What are federal exemptions?
Every state has its own set of property exemptions. And some states also allow you choose between their exemptions and a set of federal bankruptcy exemptions. Although some states allow you to use the federal bankruptcy exemptions, others do not.
When filing Chapter 7 or Chapter 13 bankruptcy you must report your assets. Exemptions are the laws that allow you to protect those assets from being taken by a Trustee. Take your time with this so you avoid losing property.
Special Considerations for Vehicles
How a car is handled in a bankruptcy can be quite different depending on whether you lease, share ownership, or wholly own a car. We recommend you browse further reading about vehicles in our learning center.