Chapter 128 in Wisconsin, also known as the Debt Adjustment Act, provides a mechanism for individuals or businesses to consolidate and manage their debts outside of bankruptcy. Here's an overview of how Chapter 128 debt consolidation typically works:
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Filing a Petition: The process begins by filing a petition with the county circuit court where the debtor resides. The petitioner must provide information about their financial situation, including details of their debts that they are seeking to repay. Attorney DeLadurantey will walk you through the type of debts you can include, and what your estimated monthly payment will be.
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Creating a Repayment Plan: After the petition is filed, the court appoints a trustee to oversee the case. The trustee reviews the petitioner's financial situation and works with them to create a proposed repayment plan. The plan outlines how the debts will be consolidated and repaid over a fixed period, usually three years. Attorney DeLadurantey will be your "attorney of record" in your case, guiding you through the process. You will not need to attend any court hearings!
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Court Approval: The proposed repayment plan must be submitted to the court for approval. The court examines the plan to ensure it is feasible and fair to both the debtor and the creditors. If the court approves the plan, it becomes binding on all parties involved.
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Monthly Payments: Once the repayment plan is approved, the debtor makes monthly payments to the trustee. The trustee then distributes the funds to creditors according to the terms of the plan. The debtor is typically responsible for making these payments for the duration of the plan.
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Creditor Participation: Creditors are given an opportunity to file claims and participate in the repayment plan.
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Debt Discharge: As long as the debtor makes all required payments under the approved plan, the debts included are deemed to be paid in full.
It's important to note that Chapter 128 is specific to Wisconsin, and other states may have different laws and procedures for debt consolidation or adjustment. Additionally, it is advisable to consult with an attorney or financial advisor who is knowledgeable about Chapter 128 and can provide guidance tailored to your specific situation.
Our initial consultations are always free. During the free initial consultation we'll walk you through how a Chapter 128 works. Most cases only require a small deposit to get the Chapter 128 filed! We offer free online scheduling for appointments.
We provide representation in Chapter 128 filings in Wisconsin, including Racine, Kenosha, Green Bay, Appleton, the Fox Valley, Milwaukee, West Allis, Waukesha, Walworth County, Dane County, Madison, La Crosse, Eau Claire, Superior, Ashland, and anywhere in-between.