In Wisconsin, there is an excellent option if you can’t file bankruptcy or don’t want to file bankruptcy.
Using Chapter 128 As A Bankruptcy Alternative
Wisconsin has a unique law for debt relief that has been on the books since 1937 which is known as a Chapter 128 filing. This is a non-bankruptcy alternative that lets you pick which debts (like high interest payday loans and credit cards, utility bills, medical bills and other unsecured debt) you want to pay off with a single monthly payment.
The debt is paid in full over 36 months (three years) at 0 percent interest. Any person whose principal source of income consists of wages or salary may file a Chapter 128. Secured creditors (mortgage and car loans) can go to State Court to have their debts kicked out of your Chapter 128 Plan.
You can stop collection, utility disconnections (WE Energies has exceptions), garnishments, and creditor harassment once your case is filed and a judge signs a protective order. (There is a filing fee paid to the clerk of courts.)
A trustee is appointed to your case and notifies and pays your creditors, either monthly or quarterly. The trustee gets a fee (7 percent if the payment is deducted from your check or 10 percent if you pay directly) that is included in your monthly payment. You pay some attorney fees up front and the rest can be paid off in the plan (included in your monthly payment), but your case will be dismissed if you don’t make your payments.
The Bankruptcy Code requires that you: list all your debts; provide detailed information about your finances and assets; go to court and testify under oath; complete two courses (credit counseling and financial management) and other burdensome requirements. Then you can get a discharge of some or all of your debts. You can wipe out your debts in a Chapter 7 (“fresh start”) Bankruptcy once every eight years and there are other requirements in a Chapter 13. You may not be able to refile right away if your case is dismissed.
Is Chapter 128 Right for You?
Attorney Patrick Rupich will help you decide which type of debt relief is right for you.
Rupich Law Offices serves the Milwaukee Metropolitan area, Southeast Wisconsin, and the Fox River Valley, and offers no-charge consultations with weekend and weeknight appointments available.
Call Rupich Law Offices today at 414-302-7042 for your free consultation. Please contact Rupich Law Offices if you have any other questions or concerns.
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