Wisconsin residents who are reluctant to file for bankruptcy may want to consider obtaining debt relief by petitioning for Chapter 128 protection. This is a debt relief option that is provided under Wisconsin law and it gets its name from the state statute it falls under, 128.21. Chapter 128 is a voluntary debt consolidation plan through the Wisconsin Circuit Court system.
In order to file a Chapter 128, we will assist you with completing a petition to reorganize your debts accompanied by an affidavit listing the debts you want to include in your filing. The affidavit must also declare your commitment to make regular payments over a term of up to three years. You can include unsecured debts such as credit cards, medical bills and rent payments. In contrast to bankruptcy, however, you cannot include your secured debts such as your mortgage loan or vehicle loans.
Similar to a bankruptcy case, there is a trustee that supervises the repayment plan. You will send your monthly payment to the trustee. Also, once you have filed your repayment plan, the court issues a protective order that stops collection activity on the debts included in the plan and prevents interest from accruing on your debts. If you fail to complete your repayment plan, you become liable for all of the interest that accrued while your plan was in effect and creditors are permitted to begin collection actions again.
One of the significant differences between a Chapter 13 bankruptcy and a Chapter 128 filing is that you are still required to pay the full amount owed under Chapter 128. You cannot reduce or eliminate debt like you can in a bankruptcy case. However, the Chapter 128 is a simpler process and you are not required to include all of your debts in the Chapter 128 case. Also, there are no limitations on how long you must wait to file another Chapter 128, so you can file repeatedly if necessary. A Chapter 128 typically does not impact your credit report like a bankruptcy filing does.
If you need relief from your debt, let us help you determine if a Chapter 128 or bankruptcy filing would benefit you. We will explain all of your options so you can make an informed decision and take the first step in getting your finances back under control.
At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in student loan law and defending a foreclosure action. Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you. Like us on Facebook.