Wisconsin Chapter 128
Exclusive to our state, the Wisconsin Chapter 128 offers a unique debt relief plan that is neither bankruptcy nor debt settlement.
Wisconsin Chapter 128
NON-BANKRUPTCY DEBT REPAYMENT!
CHAPTER 128 of the Wisconsin Statutes affords Wisconsin citizens the only non-bankruptcy, circuit court-ordered debt repayment proceeding in the nation. Featuring a 36-month debt repayment plan, a Wisconsin Chapter 128 can help:
- Stop Collections
- Stop Wage Garnishment
- Stop Interest and Late Payments
- Avoid Bankruptcy
The Fields Group Law Firm has extensive experience utilizing the Chapter 128 proceeding as a useful tool for our client’s benefit. The certain and somewhat abbreviated nature of the three-year Ch. 128 repayment plan is becoming an increasingly popular option for our clients who don't want to file for bankruptcy in Wisconsin.
The Chapter 128 Process
Our attorneys review the client’s debt portfolio for eligibility and applicability to the 128, and if they find the 128 is appropriate, the 128 documents are then prepared, executed and filed with the presiding circuit court in the client’s county of residence. The documents will outline a “128 Plan” which lists the creditors, the amount each are owed, and the monthly payment to be paid into the “plan.” The court appoints a third-party trustee to administer the plan and who receives the client’s payments and distributes them to the creditors. The client makes 36 equal monthly payments into the plan until the debt is paid off. Your creditors must accept your payments under the 128 plan.
Chapter 128 Advantages (NOT BANKRUPTCY!)
First, the 128 is not bankruptcy and it is not treated as such by your creditors nor is it treated as such by the various credit reporting agencies. It is reported on your credit score as a “repayment plan” or language to that effect. While the 128 cannot stop your creditors from suing you, it does STOP all post-judgment collection efforts such as garnishment. Upon the filing of a 128, your creditors must stop the accrual of interest on your accounts. This feature of the 128 is particularly useful with high interest credit cards and payday loans.
With a few exceptions, just about all unsecured debts are eligible to be enrolled in a Chapter 128. All Wisconsin adults are potentially eligible to pay off their debts using the 128.
If you wish to learn more about the Chapter 128 Proceeding, please call us at (414) 763-3200 to have a no charge and obligation-free consultation with one of our consultants.