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Frequently
Asked Questions
WHO NEEDS CHAPTER
128?:
If you are burdened with debt and for whatever reason
cannot, or do not, wish to file bankruptcy, you may qualify
for a Chapter 128 voluntary debt consolidation plan.
It is open to any resident of the State of Wisconsin.
WHAT DOES IT COST?:
The filing fee is $22.00
in most counties (slightly higher in Milwaukee County).
There will also be attorney’s fees which are set
by the attorney, not the trustee. The trustee’s
fees are a percentage of your total debts and are not
an upfront cost but rather are paid out over the term
of your plan.
Your
attorney will determine your payments to the trustee.
Because this is a wage earner plan, you must be employed
and payments to the trustee must be done by wage withholding.
There may be exceptions if you are on a fixed income (such
as SSI).
PURPOSE OF A CHAPTER 128:
The purpose of filing a Chapter
128 is to pay off debt. The trustee does not repair credit
reports and does not provide credit counseling . However,
when you successfully complete your plan, you will receive
an Order from the Court which you will use to clean up
any problems remaining on your credit report.
HOW LONG IS
THE PLAN?
Chapter 128 plans are 36 months by statute.
However, you may be able to file an accelerated plan
with larger payments.
WHAT DEBTS CAN I INCLUDE?:
Generally, medical bills, credit
cards, check cashing stores, personal loans (without
co-signers) and most other miscellaneous bills may be included.
WHAT DEBTS CANNOT BE INCLUDED?:
Debts with collateral cannot
be included, which includes car/motorcycle loans, and
mortgages. Co-signed loans, taxes, child support, and student
loans may not be included.
WHO CAN FILE?:
Any employed Wisconsin resident. If married, it must be
filed by both husband and wife.
HOW DO I FILE A CHAPTER
128?:
Chapter 128 plans are filed through an attorney,
as these are legal proceedings. The attorney will review
your situation to determine if you qualify for the plan.
He or she will examine your debt situation, explain the
plan, prepare and submit the required documents with the
Court and communicate with the trustee.
Click here for a list of Wisconsin attorneys
who handle Chapter 128 plans.
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