Drowning in debt can feel overwhelming, leaving you unsure of the best path forward. While bankruptcy is a well-known option, it's not the only one. If you're a resident of Wisconsin struggling with manageable debt, Chapter 128 might be the solution you've been looking for.
What is Chapter 128?
Chapter 128 is a Wisconsin-specific program designed to help consumers consolidate and repay their debts through a court-ordered plan. Unlike bankruptcy, Chapter 128 doesn't involve discharging debt. Instead, it creates a structured repayment schedule, lasting three years, to help you become debt-free.
Benefits of Chapter 128
- Maintain Control: Unlike bankruptcy, Chapter 128 allows you to keep your assets (like your car or house) while you repay your debts.
- Stop the Bleeding: Filing for Chapter 128 triggers a court order, often referred to as a "stay," that prevents creditors from taking further collection actions like wage garnishments.
- Consolidated Payments: Chapter 128 streamlines your debt repayments into one monthly payment, simplifying your budget and potentially reducing interest charges.
- Structured Approach: The court-approved plan provides a clear roadmap for becoming debt-free, offering peace of mind and motivation.
What Debts are Included?
Chapter 128 typically covers unsecured debts such as credit cards, medical bills, and personal loans.
Things to Consider
- Cost: Filing for Chapter 128 involves court fees and potentially attorney fees.
- Eligibility: There are no income limitations for Chapter 128.
- Credit Impact: While Chapter 128 isn't technically bankruptcy, it can still negatively impact your credit score.
Chapter 128 vs. Bankruptcy
Choosing between Chapter 128 and bankruptcy depends on your specific circumstances. Here's a quick comparison:
| Feature | Chapter 128 | Bankruptcy |
|---|---|---|
|
Goal |
Repay debt in a structured plan |
Eliminate some or all of your debt |
|
Asset Retention |
Allows you to keep most of your assets |
May require selling assets to repay creditors |
|
Impact on Credit Score |
Negative impact, but potentially less severe than bankruptcy |
Significant negative impact |
Getting Started with Chapter 128
If Chapter 128 sounds like a good fit for your situation, consult with an attorney experienced in Wisconsin debt consolidation. They can guide you through the process, assess your eligibility, and ensure a smooth journey towards financial freedom.
Remember, Chapter 128 is a powerful tool, but it's not a magic solution. Be sure to understand the program's limitations and consult with a professional before making any decisions.
Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.
