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Halting the Interest Avalanche: How Chapter 128 Can Halt Credit Card Debt Interest in Wisconsin

Posted by Nathan DeLadurantey | Nov 24, 2023

Credit card and installment loan debt can quickly spiral out of control, especially when high-interest rates accumulate over time. For individuals facing financial challenges in Wisconsin, Chapter 128 provides a potential lifeline. In this blog post, we'll explore how utilizing Chapter 128 can effectively put the brakes on interest accrual and provide a structured path toward regaining financial stability.

Understanding Chapter 128:

Chapter 128, also known as the Wisconsin Wage Earners' Chapter, is a state-specific provision designed to help residents manage their debts without resorting to bankruptcy. One notable advantage is its ability to freeze interest on credit card and other debt, providing a temporary reprieve for individuals struggling to keep up with mounting interest charges.

How Chapter 128 Works:

  1. Initiating the Process: To take advantage of Chapter 128, an individual must file a petition in their county's circuit court. This petition outlines the debts they wish to include in the plan.

  2. Court Approval: Once filed, the court reviews the petition and, if approved, issues an order that prevents creditors from pursuing collection activities, including charging additional interest on the included debts.

  3. Debt Repayment Plan: The court allows the debtor to establish a reasonable and manageable debt repayment plan within the guidelines and rules found in Wis. Stat. 128. This plan spans three years, during which the debtor makes regular payments to a court-appointed trustee.

  4. Freezing Interest: One of the key benefits of Chapter 128 is that it effectively freezes interest on included debts. This provides a breathing space for individuals to pay down the principal amount without the added burden of compounding interest.

  5. Protection from Legal Actions: During the repayment period, creditors are legally prohibited from pursuing wage garnishments or other collection efforts. This protection provides stability and allows debtors to focus on meeting their repayment obligations.

Advantages of Chapter 128:

  1. Interest Freeze: The ability to halt interest accrual on credit card debt is a significant advantage. This ensures that payments made during the Chapter 128 plan directly contribute to reducing the principal balance.

  2. Avoiding Bankruptcy: Chapter 128 provides a viable alternative to bankruptcy for individuals who may not qualify or wish to avoid the long-term impact on their credit score.

  3. Court Oversight: The court's involvement adds a layer of protection for debtors. The court ensures that the repayment plan is fair and manageable, preventing creditors from taking advantage of the situation.

  4. Structured Repayment: The three-year repayment plan provides a structured framework for individuals to gradually pay off their debts without the constant pressure of escalating interest.


Chapter 128 in Wisconsin serves as a valuable tool for individuals seeking relief from credit card debt. By freezing interest and providing a structured repayment plan, it offers a balanced and manageable path to financial recovery. If you find yourself drowning in credit card debt and struggling with accruing interest, exploring Chapter 128 may be a crucial step toward regaining control of your financial future. However, it's essential to consult with a qualified legal professional to assess your specific situation and explore the best course of action for your needs.

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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