Struggling with Unmanageable Debt?

If you're a Wisconsin resident overwhelmed by unsecured debt, Chapter 128 might be a viable solution. This state law offers a streamlined process to consolidate and repay your debts over a fixed period of 36 months.

How Does Chapter 128 Work?

1. Filing the Petition:

   • A Chapter 128 petition is filed with the Wisconsin circuit court.
   • This petition outlines your financial situation, including income, expenses, and a proposed repayment plan.

2. Automatic Stay:

   • Upon filing, an automatic stay goes into effect. This prevents creditors from collection activities like:
     • Wage garnishment
     • Bank account levies

3. Debt Consolidation:

   • Your eligible unsecured debts are consolidated into a single monthly payment.
   • This payment is typically lower than the total of your monthly debt payments before filing.

4. Repayment Plan:

   • You'll make regular payments to a court-appointed trustee.
   • The trustee distributes these payments to your creditors.

Who Qualifies for Chapter 128?

To be eligible for Chapter 128, you must:

• Be a Wisconsin resident.
• Have primarily unsecured debts (credit cards, medical bills, etc.).
• Have a regular income.
• Be able to repay your debts within the 36-month period.

Advantages of Chapter 128:

• Debt Consolidation: Simplifies your finances with a single monthly payment.
• Automatic Stay: Provides immediate relief from certain creditor harassment.
• Potential Interest Reduction: May lead to lower overall debt due to reduced interest accrual.
• Faster Relief: Typically, a shorter repayment period than bankruptcy.
• No Court Appearances: Usually, no need for court hearings.

Disadvantages of Chapter 128:

• Limited Debt Types: Primarily for unsecured debts.
• Income Requirements: Must have a steady income to qualify.
• Credit Impact: May negatively impact your credit score.

Consulting with an Attorney

Before considering Chapter 128, it's crucial to consult with a qualified bankruptcy attorney. They can assess your financial situation, explain the process, and help you determine if Chapter 128 is the right choice for you.

Remember:

• Chapter 128 is a serious legal process.
• It's essential to understand your rights and obligations.
• Seeking professional advice can help you make informed decisions.

By carefully considering your options and consulting with an attorney, you can take control of your financial future and achieve debt relief through Chapter 128.

Disclaimer: This information is intended for general knowledge and informational purposes only, and does not constitute legal advice. It is essential to consult with an attorney for advice tailored to your specific situation.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.