Facing unpaid debt can be stressful, but there are solutions! In Wisconsin, you have several options for settling outstanding debts and moving towards financial peace of mind. Here's a breakdown of some common approaches:

Communicate with Your Creditor

The first step is often the simplest: talk to the creditor you owe money to. Here's why:

• Negotiate a Payment Plan: Many creditors are willing to work with you to create a manageable payment plan that allows you to catch up on your debt over time.
• Explore Settlement Options: Some creditors might consider a debt settlement, where you pay a lump sum amount that's less than what you owe in full satisfaction of the debt.
• Avoid Default: Open communication can help prevent late fees, penalties, and potential lawsuits.

Consider Debt Consolidation

Debt consolidation involves taking out a new loan to pay off your existing debts. This can simplify your repayment process by merging everything into a single monthly payment. Here are some consolidation options:

• Balance Transfer Credit Card: If you have good credit, a balance transfer credit card with a 0% introductory APR period can allow you to consolidate your debt at a lower interest rate for a limited time.
• Personal Loan: A personal loan can be used to consolidate debt, but interest rates may be higher than those offered on balance transfer cards.

Explore Chapter 128

Chapter 128, also known as Wisconsin's Debt Adjustment Act, is a form of bankruptcy specifically designed for manageable unsecured debts (credit cards, medical bills, etc.). The court approves a repayment plan, and you make monthly payments to a court-appointed trustee who distributes them to your creditors. This option should be a last resort, as it can have a negative impact on your credit score.

Important Considerations:

• Impact on Credit Score: Settling debts, debt consolidation loans, and bankruptcy filings can all negatively impact your credit score.
• Seek Professional Guidance: Consulting with a credit counselor or bankruptcy attorney can help you assess your options and choose the best course of action for your situation.

Remember: Don't ignore your debt! By taking proactive steps and exploring your options, you can find ways to resolve unpaid debts and work towards financial wellness in Wisconsin.

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