Practice Areas and Legal Definitions

Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws. Although some bankruptcy claimants are deemed as credit abusers and/or considered financially irresponsible, many hardworking individuals and businesses can succumb to financial difficulty, and face irreparable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt. To discuss your bankruptcy options, or other areas of recourse that might be available to you, contact a qualified bankruptcy attorney who can advise you of your legal rights as stated under Bankruptcy Law and federal Bankruptcy courts.

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a debtor files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a debtor files a plan with the bankruptcy court proposing how to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now required to seek budget and credit counseling within six months of filing, financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 may now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

If you or someone you know needs the assistance of an experienced Madison, Wisconsin Bankruptcy lawyer, call Victoria Hewelt Cazel today at 866-435-2703, or complete the contact form provided on this site to schedule a free consultation.

If you or someone you know needs the assistance of an experienced Madison, Wisconsin Bankruptcy lawyer, call Victoria Hewelt Cazel today at 866-435-2703, or complete the contact form provided on this site to schedule a free consultation.

ADDRESS OF THE FIRM:
Cazel Law Offices
4710 East Broadway,
Suite 180
Madison, WI 53716
Phone: 866-435-2703
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

• Attorney Victoria Hewelt Cazel

Victoria Hewelt Cazel graduated from the University of Wisconsin at Madison in 1974 with a degree in German. Following two years working in the "real world," she went back to school at the Chicago-Kent College of Law.

While in law school, Victoria became a legal intern in the Legal Service at the law school where she practiced, under supervision, for her last two years of law school. Victoria graduated from law school in 1979 and received the Bar and Gavel Award for service to the law school community. During her last two years in school and for five years after graduation, she taught at and later, headed up the Pro Se Legal Project which taught lay people to do their own, simple divorces.

Later, she and her law partner, Michael Benedetto, started the Self-Help Legal Services of Oak Park and spent two years teaching people to do their own wills, simple divorces and Chapter 7 bankruptcies. Victoria was the Students' Attorney at the University of Illinois at Chicago's Legal Services Center where she had a client load in excess of 22,000. When she came to the Legal Services Center, there was only one attorney (Victoria), one paralegal and one secretary. During the four years that she served in the position, she expanded the service to three attorneys, two secretaries and several paralegals who provided not only legal advice but also in-court representation.

For most of the more than 26 years she has practiced law, she has been in private practice which has emphasized the areas of family law, wills, real estate closings and both Chapter 7 and 13 bankruptcies. For the last fourteen years, the majority of her practice has been in the area of bankruptcy and divorce.

Victoria was admitted to practice law in Wisconsin in 1985 and is also licensed in Illinois, Minnesota and Montana.

• Tracy Coyle

Tracy has spent the last ten years helping businesses start new divisions and departments. Experienced in administrative and operational implementations, she serves as Victoria's right hand. Her experience with computers and software allows Victoria to concentrate on the clients rather than administrative tasks.

• CJ Cazel

CJ Cazel supports Victoria's commitment to family services. As a 10 year old, she spends most of her time at school. But when she is in the office, she welcomes clients and visitors and helps the children of clients (while Mom helps their parents) with computer learning programs, kid videos, reading and art work. Additionally, CJ helps the law office be a less stressful place by bringing a sense of perspective to everyone in the office. If you ask nice, she might be willing to give you a karate demonstration (she earned her first degree black belt in November 2004).