Sometimes, because of sickness, job loss or other reasons, people become overwhelmed by bills. This is not the time to ignore the problem and hope it goes away. First, contact creditors in writing and advise them of your situation. While they are not obligated to give you extra time to pay your bills, they may be willing to consider alternative payment plans. They are often available at low cost.
Contact DFI to see if the organization is properly licensed in Wisconsin.
Chapter 13 allows a debtor to pay off creditors over 3-5 years. In this case debtors won't lose any property or possessions. Chapter 7 involves the liquidation of all your assets, except those exempt by law, to pay your debts. Although bankruptcy will clear most of your debts, it may not eliminate spousal and child support payments, some student loans, taxes or fines. The best way to start is to establish a checking and savings account with your local financial institution.