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Understanding Chapter 128: How Payments are Calculated

Posted by Nathan DeLadurantey | Dec 04, 2023

Chapter 128 of the United States Bankruptcy Code provides individuals with a structured repayment plan for their debts without resorting to full bankruptcy. This chapter, often referred to as "Chapter 128 wage earner's plan" or "Chapter 128 filing," allows debtors to create a manageable repayment schedule while retaining control of their assets. In this blog post, we'll delve into how payments are calculated in a Chapter 128 plan.

  1. Determining Disposable Income:

The first step in calculating payments under Chapter 128 involves determining the debtor's income, and if it is sufficient to pay the monthly amount required under Chapter 128.

  1. Budgeting for Necessary Living Expenses:

Chapter 128 emphasizes the importance of maintaining a reasonable standard of living for the debtor and their dependents.

  1. Income Analysis:

 The goal is to arrive at a realistic and sustainable repayment amount that aligns with the debtor's financial situation.

  1. Creditors' Claims:

Chapter 128 allows debtors to consolidate unsecured debts into a single monthly payment. Creditors submit their claims to the court, and the payment plan is designed to fairly distribute available funds among them. 

  1. Duration of the Plan:

Chapter 128 repayment plans last 3 years. 

  1. Trustee's Role:

A trustee is appointed to oversee the Chapter 128 repayment plan. The trustee plays a crucial role in collecting payments from the debtor and distributing them to creditors according to the approved plan. The trustee ensures compliance with the terms of the plan and may make adjustments if necessary.

  1. Changes in Circumstances:

Life is unpredictable, and financial situations may change. If a debtor experiences a significant change in income or expenses during the repayment period, they should discuss these issues with a lawyer to arrive at the best solution. 


Chapter 128 offers a structured and manageable approach for individuals struggling with debt. It's a process that aims to balance the interests of both debtors and creditors while providing a path toward financial stability.

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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