Living in Wisconsin and struggling with unsecured debt? You're not alone. Medical bills, credit cards, and other debts can quickly spiral out of control, leaving you feeling overwhelmed. But there is a glimmer of hope: Chapter 128.

What is Chapter 128?

Chapter 128 is a Wisconsin statute designed to help residents consolidate and repay unsecured debts over a manageable 36-month period. Unlike bankruptcy, Chapter 128 doesn't involve complete debt discharge. Instead, it acts as a debt consolidation plan overseen by the court.

Here's how it works:

• You file a petition with the court, listing your unsecured debts (think credit cards, medical bills, etc.). Secured debts like mortgages and car loans aren't included.
• The court appoints a trustee to manage the plan.
• You make fixed monthly payments to the trustee, who then distributes the funds to your creditors.
• During the repayment period, creditors are prohibited from taking certain collection actions like wage garnishment or bank account levies.

Benefits of Chapter 128:

• Reduced stress: Chapter 128 offers a structured approach to managing debt, providing much-needed peace of mind.
• Lower monthly payments: By consolidating your debts, you can simplify your finances and potentially free up some cash flow.
• Creditor protection: The court-ordered stay on collection actions gives you breathing room to focus on repayment.
• Avoids bankruptcy: Chapter 128 can be a good alternative to filing for bankruptcy, which can have long-term negative impacts on your credit score.

Qualifying for Chapter 128:

There are specific requirements to qualify for Chapter 128. In general, you must be a Wisconsin resident with a steady income that demonstrates your ability to make the monthly payments. Consulting with a qualified debt consolidation attorney is advisable to determine your eligibility and navigate the process.

Is Chapter 128 Right for You?

If you're a Wisconsin resident struggling with unsecured debt, Chapter 128 could be a valuable tool to get back on your feet financially. Remember, this blog post isn't a substitute for professional legal advice. Consulting with a Wisconsin debt consolidation attorney can help you determine if Chapter 128 is the right option for your unique situation.

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