Consumer advocates of Wisconsin

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Voluntary Amortization of Debts

More commonly known as a "Chapter 128"

Wisconsin residents are eligible to file a petition under Wisconsin Statutes Section 128.21.  Often known as filing a "Chapter 128," this proceeding allows Wisconsin consumers the ability to repay debts.  Here are some important things to know when deciding whether a Chapter 128 is right for you:

• Compared to debt consolidation plans, Chapter 128 have strong benefits including:
  
  • A Court order prohibiting included creditors from garnishing wages;
    
  • Upon completion of the plan, a Court order confirming completion of the plan and satisfaction of paid debts.
    
  • Oversight by a Judge, with the ability to get relief from creditors who violate active protections.
    
  • The assistance and availability of an attorney to help navigate problems with payments.
    
• A Chapter 128 repayment plan can last no longer than three years.  Any debt that is included in a Chapter 128 plan must be paid in full within three years.  This usually prohibits consumers from including mortgages, car notes, and most student loans.
  
• When debt is included in a Chapter 128 repayment plan, those creditors cannot garnish, execute, or attach your assets.  This is known as a "stay." It is important to understand that the stay available under a Chapter 128 is a lot more narrow than the stay available to those who file bankruptcy.
  
• Filing a Chapter 128 gives you the ability to pick and choose which debts are included in your repayment plan.  
• Chapter 128 plans can be paid monthly or by automatic payroll deduction.
• Wisconsin Statutes Chapter 128 does not prohibit creditors from contacting you or obtaining a judgment against you.  Although there may be remedies under other sections of Wisconsin law to help avoid such activity by creditors, there are no such provisions in Chapter 128.

For more information on how a Chapter 128 can help you, contact us today.  We offer free consultations and affordable fees!

More useful information about Chapter 128:

Chapter 128: Wisconsin's Bankruptcy Alternative

Milwaukee Justice Center on Chapter 128s