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Decoding Chapter 128 and Wage Amortization: A Practical Guide and Help

Posted by Nathan DeLadurantey | Jan 31, 2025

Chapter 128 of the Wisconsin Statutes and the concept of wage amortization often appear together, particularly in discussions surrounding debt collection and wage garnishment. Understanding the interplay between these two is crucial. This post aims to break down the key aspects of Chapter 128 and how it relates to wage amortization and protection of your wages. 

What is Chapter 128?

Chapter 128 generally outlines the procedures for wage earners to propose a debt amortization plan. This plan allows individuals facing significant debt to repay their creditors over time through regular installments deducted directly from their wages. It's a structured approach designed to avoid bankruptcy while ensuring creditors receive some repayment. Think of it as a court-ordered repayment plan.

Wage Amortization: The Mechanics

Wage amortization, in the context of Chapter 128, refers to the process of systematically paying down debt through regular deductions from an individual's wages. The court approves a plan that outlines the total debt, the repayment schedule, and the amount to be deducted from each paycheck. This amount is generally then directly taken from the employee's wages and distributed to the creditors according to the plan.

How Chapter 128 and Wage Amortization Work Together:

Chapter 128 provides the legal framework for wage amortization. It sets the rules and guidelines for:

  • Eligibility: Who can file for a Chapter 128 plan? Usually, there are requirements regarding Wisconsin residency and wage income. 
  • Plan Proposal: How is the amortization plan created and submitted to the court? What information must be included? These are all questions that a lawyer can assist you in calculating and following. 
  • Creditor Approval: While not always required for all debts, sometimes creditor objections can cause issues. 
  • Court Approval: The court reviews the proposed plan to ensure it complies with the statute. 
  • Wages: Once the plan is approved, the court orders the employer to take the specified amount from the employee's wages.
  • Distribution of Funds: The garnished wages are then distributed to the creditors according to the terms of the plan.
  • Completion and Discharge: Upon successful completion of the plan, the remaining debts are deemed paid in full. 

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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