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Using Chapter 128 for Debt Consolidation: A Comprehensive Guide

Posted by Nathan DeLadurantey | Nov 10, 2023

Debt can be a heavy burden, making it difficult to meet your financial goals and maintain a comfortable lifestyle. Fortunately, there are various debt consolidation options available to help individuals regain control of their financial situation. One such option, specific to the state of Wisconsin, is Chapter 128, also known as the wage earner's plan. In this blog post, we'll explore how to use Chapter 128 for debt consolidation and get your financial life back on track.

Understanding Chapter 128

Chapter 128 is a legal mechanism unique to Wisconsin that allows individuals to create a structured debt consolidation plan. It offers relief from aggressive debt collection tactics, such as wage garnishment, and provides a framework for repaying your debts in an organized manner. Here's how you can use Chapter 128 for effective debt consolidation:

1. Assess Your Financial Situation

Before proceeding with Chapter 128, it's crucial to assess your financial situation. Gather all the necessary information about your debts, including their amounts, interest rates, and creditors. This assessment will help you understand the scope of your financial challenges and determine whether Chapter 128 is the right solution for your debt consolidation needs.

2. Consult with a Legal Professional

Seek advice from an attorney experienced in Chapter 128. A legal professional will evaluate your financial situation, answer any questions you may have, and guide you through the process. They will help determine whether Chapter 128 is the best course of action for your specific circumstances. Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online. 

3. File a Petition

To initiate the Chapter 128 process, you will need to file a petition with the circuit court in your county. This petition should include details about your income, expenses, and debts, as well as a proposed repayment plan. Once filed, an automatic stay provision is activated, temporarily halting all debt collection activities, including wage garnishment, and offering immediate relief.

4. Develop a Repayment Plan

Working with a court-appointed trustee, you'll create a structured repayment plan. This plan will outline how you intend to pay off your debts over a three-year period. The trustee will ensure that your plan is both feasible and fair to creditors. This is a critical step in your debt consolidation journey, as it provides you with a clear roadmap for managing your financial obligations.

5. Commit to Your Plan

Once your repayment plan is approved by the court, it's essential to commit to it. Make regular, on-time payments to the trustee, who will distribute the funds to your creditors according to the plan's terms. Staying dedicated to your plan will lead to a successful debt consolidation process and, ultimately, financial relief.

Benefits of Using Chapter 128 for Debt Consolidation

  • Protection from Creditors: Chapter 128 grants you protection from creditors, preventing them from taking legal action to collect debts during the repayment period.

  • Asset Retention: Unlike bankruptcy, Chapter 128 doesn't involve asset liquidation, allowing you to retain control over your property and assets.

  • Structured Repayment: The repayment plan offers a systematic approach to managing your debts, making it easier to budget and plan for your financial future.

  • Credit Score Impact: While Chapter 128 may have some impact on your credit score, it's often less severe and of shorter duration compared to bankruptcy.

In conclusion, Chapter 128 can be a valuable tool for debt consolidation in Wisconsin. By taking these steps and working closely with a legal professional, you can create a structured plan to regain control of your financial situation and work towards a debt-free future. This process offers protection from creditors, the ability to retain your assets, and the peace of mind that comes with having a clear path to 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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