Drowning in debt in Wisconsin? Chapter 128 debt repayment might be a solution you haven't considered. Often referred to as "debt adjustment," Chapter 128 is a state-specific program designed to help Wisconsin residents regain control of their finances through a court-supervised repayment plan. Here's a breakdown of what Chapter 128 offers:
How Chapter 128 Works:
- Consolidation: Chapter 128 allows you to consolidate unsecured debts like credit cards, medical bills, or payday loans into a single monthly payment for 36 months. This simplifies managing your debt and potentially reduces your interest rates.
- Court-Ordered Plan: A petition is filed with the Wisconsin Circuit Court. The court appoints a trustee to oversee the repayment plan, ensuring fair treatment for both you and your creditors.
- Focus on Unsecured Debts: Unlike bankruptcy, Chapter 128 doesn't eliminate debt. It focuses on creating a manageable repayment plan for unsecured debts. Secured debts like mortgages and car loans typically aren't included.
Benefits of Chapter 128:
- Avoid Bankruptcy: If bankruptcy seems daunting, Chapter 128 offers an alternative to achieve debt resolution.
- Reduced Interest Rates: The court-approved plan may allow for lower interest rates on your debts, making repayment more manageable.
- Creditor Communication: The trustee handles communication with creditors, eliminating collection calls and harassment.
- Automatic Stay: While your plan is in effect, creditors cannot garnish your wages or take legal action to collect debts included in the plan.
Things to Consider:
- Eligibility: Chapter 128 isn't for everyone. You must be a Wisconsin resident with sufficient income to meet the repayment plan. Consulting with an attorney can help determine your eligibility.
- Cost: Filing fees and trustee fees are associated with Chapter 128.
- Credit Score Impact: While not as severe as bankruptcy, Chapter 128 can still negatively impact your credit score for several years.
Exploring Your Options:
- Free or Low-Cost Credit Counseling: Non-profit credit counseling agencies offer debt management plans and financial education resources. They can also advise you on whether Chapter 128 is the right option for you.
- Chapter 128 Attorney: A qualified attorney can guide you through the Chapter 128 process, ensuring you understand your rights and navigate the legalities effectively.
Remember: Chapter 128 is a powerful tool for Wisconsin consumers struggling with debt. Carefully weigh the pros and cons, explore free credit counseling resources, and consult with an attorney to determine if Chapter 128 is the right path towards financial freedom.
Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.
