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Chapter 128 Bankruptcy in Wisconsin: A Path to Financial Recovery

Posted by Nathan DeLadurantey | Feb 16, 2024

In times of financial hardship, individuals and businesses in Wisconsin may find themselves overwhelmed by debt and struggling to make ends meet. Chapter 128 bankruptcy offers a unique avenue for debtors to restructure their obligations and regain control of their finances. In this blog post, we'll explore the key aspects of Chapter 128 bankruptcy in Wisconsin and how it can help individuals pay off bills and achieve financial stability.

Understanding Chapter 128 Bankruptcy: Chapter 128 bankruptcy, also known as Wisconsin's "wage earner plan," is a state-specific alternative to traditional bankruptcy under federal law. It provides individuals with a structured repayment plan to settle their debts while avoiding the stigma and long-term consequences associated with federal bankruptcy.

One of the primary advantages of Chapter 128 bankruptcy is that it allows debtors to consolidate their debts into a single monthly payment based on their ability to pay. This can provide much-needed relief for individuals struggling with multiple creditors and high-interest rates.

Initiating the Chapter 128 Process: To file for Chapter 128 bankruptcy in Wisconsin, an individual must petition the circuit court in their county of residence. The debtor submits a petition along with a proposed repayment plan detailing how they intend to repay their debts over a specified period, typically three years.

Unlike federal bankruptcy, Chapter 128 does not require debtors to pass a means test or liquidate assets. Instead, it focuses on creating a feasible repayment plan based on the debtor's income and expenses.

Upon filing the petition, the court appoints a trustee to oversee the Chapter 128 process and work with creditors to negotiate a repayment plan. Creditors have the opportunity to object to the proposed plan, but ultimately, the court has the authority to approve or modify the plan based on the debtor's financial circumstances.

Benefits of Chapter 128 Bankruptcy: Chapter 128 bankruptcy offers several benefits for debtors seeking to pay off bills and regain control of their finances:

  1. Protection from creditors: Once the Chapter 128 petition is filed, creditors are prohibited from taking certin legal action or pursuing collection efforts against the debtor, providing a temporary reprieve from harassment and lawsuits.

  2. Structured repayment plan: Chapter 128 allows debtors to consolidate their debts into a manageable monthly payment, making it easier to budget and plan for the future.

  3. Preservation of assets: Unlike federal bankruptcy, Chapter 128 does not require debtors to liquidate their assets, allowing them to retain ownership of their property and assets.

  4. Avoidance of bankruptcy stigma: Chapter 128 is not considered a traditional bankruptcy filing and does not carry the same stigma or long-term impact on credit as federal bankruptcy.

Conclusion: Chapter 128 bankruptcy offers a viable solution for individuals in Wisconsin struggling to pay off bills and manage their debts. By providing a structured repayment plan and protection from creditors, Chapter 128 empowers debtors to regain control of their finances and work towards a brighter financial future. If you're facing overwhelming debt in Wisconsin, Chapter 128 bankruptcy may be the lifeline you need to achieve financial stability and peace of mind.

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

About the Author

Nathan DeLadurantey

Nathan DeLadurantey ATTORNEY [email protected] Nathan is a skilled consumer lawyer who handles cases and trials all over Wisconsin. Phone consultations are always free and welcomed. Nathan has helped clients receive large jury verdicts and settlements stemming from consumer law violations, and is ready and able to assist.


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