What is Chapter 128?
Chapter 128 is a Wisconsin state law that allows residents to consolidate their unsecured debts into a single monthly payment plan. This plan is for three years. Chapter 128 is not a form of bankruptcy, but it does offer some of the same protections, such as stopping wage garnishments and preventing creditors from taking certain actions.
How does Chapter 128 work?
To qualify for Chapter 128, you must be a Wisconsin resident with a steady source of income. You will need to file a petition with the court and propose a repayment plan. The court will then review your plan and approve it if it is feasible. Once your plan is approved, you will start making your monthly payments to a court-appointed trustee. The trustee will then distribute the money to your creditors.
What are the benefits of Chapter 128?
- Lower monthly payments: Chapter 128 can help you lower your monthly payments by consolidating your debts into a single payment.
- Protection from creditors: Once you file for Chapter 128, creditors are prohibited from taking certain actions, such as garnishing your wages.
- Peace of mind: Chapter 128 can help you get your finances back on track and give you peace of mind knowing that your debts are being managed.
What are the drawbacks of Chapter 128?
- It can be a lengthy process: It can take several months for your Chapter 128 plan to be approved.
- You will still owe your debts: Chapter 128 is not a form of bankruptcy, so you will still owe your debts. However, you will have a more manageable payment plan.
- It can affect your credit score: Filing for Chapter 128 can have a negative impact on your credit score.
Is Chapter 128 right for you?
Chapter 128 can be a good option for Wisconsin residents who are struggling to manage their debt. However, it is important to weigh the pros and cons before deciding if it is the right choice for you. You should also talk to a financial advisor or attorney to get more information.
Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.
