When your debts begin to control your life, you realize something must be done to turn the problem around. Many people contemplate bankruptcy, but that may not be the solution for you.
Wisconsin offers an alternative in the form of Chapter 128. This is a debt consolidation plan that you may find suits your needs and your circumstances better than bankruptcy.
Highlighting the main differences
Bankruptcy is a federal plan for debt relief, the most common choices being Chapter 7 or Chapter 13. On the other hand, Chapter 128 is a Wisconsin option exclusively, and it is a counseling plan, not a bankruptcy.
Understanding key features
Unlike bankruptcy, Chapter 128 does not require you to list any of your assets or properties that are not in jeopardy. You do not even have to list all the debts you owe, but you will pledge to repay the debts you do list. If you are afraid of being subjected to garnishments, Chapter 128 will put a stop to that possibility. Furthermore, you do not have to make a court appearance.
Filing for debt relief
You will have to file a list of your creditors and their addresses—and you will do this under oath—with the clerk of the circuit court. The court will send a notice to your creditors that an application for Chapter 128 is pending, and give them three months to file verifiable claims. A notice will also be sent to advise the department of revenue.
Chapter 128 is easy to file and a more inexpensive approach than Chapter 7 or 13 to resolving your debts and getting your life back in order. However, an attorney experienced with both bankruptcy and alternative solutions can help you understand your options so you can choose which is best suited to your particular circumstances.