About Chapter 128
WHAT IS CHAPTER 128?
Chapter 128 is a voluntary debt consolidation plan through the Wisconsin Circuit Court system. It is not a consumer credit counseling plan and it is not bankruptcy.
CHAPTER 128 vs. BANKRUPTCY
There are two major differences: Bankruptcy is Federal. Chapter 128 is strictly a State of Wisconsin plan. Also, Chapter 128 is the opposite of bankruptcy: you are repaying the debts.
ABOUT THE NEW BANKRUPTCY LAWS:
The Federal Government overhauled the bankruptcy laws, which went into effect October 17, 2005, making it much more difficult to file bankruptcy. This does not effect Chapter 128 proceedings and in fact may make it a much more attractive option to debtors: if you do not qualify for bankruptcy, you may be able to file a Chapter 128 instead.
The following is a partial list of the advantages of a Chapter 128:
- Is unique to the State of Wisconsin and is open to all Wisconsin residents.
- Unlike bankruptcy, you are not required to list assets and property not in jeopardy.
- You do not need to list all the debts you owe, unlike bankruptcy.
- A very attractive alternative if you do not qualify under the new bankruptcy laws.
- Stops garnishments.
- Debt gets repaid.
- Not listed in newspapers.
- Interest on debts is uncollectible upon successful completion of the Chapter 128.
- Easy and inexpensive to file.
- May file more than once.
- No Court appearances.