Drowning in debt? Wisconsin residents facing financial hardship have a unique lifeline: Chapter 128. Often referred to as the "Wage Earner's Plan," Chapter 128 offers a path to debt repayment outside the traditional bankruptcy system.
But is Chapter 128 right for you? Let's explore the key benefits for Wisconsin consumers:
Breathing Room from Creditors
One of the biggest advantages is the automatic stay that comes with filing. This court order halts certain creditor collection activities like wage garnishments. This provides much-needed breathing room to develop a manageable repayment plan.
Consolidation and Control
Chapter 128 allows you to consolidate unsecured debts (think credit cards, medical bills) into a single, court-approved repayment plan typically lasting 36 months. Unlike bankruptcy, you retain control of your assets like your car and house.
Avoiding Bankruptcy Stigma
Chapter 128 doesn't carry the same stigma as bankruptcy. This can be crucial for securing future loans like mortgages or car loans.
A Wisconsin-Specific Solution
Unlike federal bankruptcy laws, Chapter 128 is tailored to Wisconsin residents. This can provide a more personalized approach to your debt repayment journey.
However, Chapter 128 isn't a magic bullet:
- It only applies to unsecured debts, not mortgages or car loans.
- There are filing fees and potentially attorney costs.
- You must commit to making your monthly payments on time.
Considering Chapter 128? Here's what to do next:
- Research: This blog post is a starting point, but delve deeper to fully understand Chapter 128's pros and cons.
- Consult an Attorney: An experienced Wisconsin bankruptcy attorney can advise you on whether Chapter 128 is the right option for your specific situation and help you navigate the filing process.
Remember: Chapter 128 is a powerful tool for Wisconsinites struggling with debt. By understanding the benefits and limitations, you can make an informed decision about your financial future.
Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.
