Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

Looking at bankruptcy alternatives, P.2

Last time, we began looking at several alternatives to bankruptcy, including debt consolidation loans, debt settlement and credit/debt counseling. Another bankruptcy alternative for Wisconsin debtors is commonly known as a Chapter 128 proceeding. In such an action, a debtor establishes a personal receivership in which he or she may gradually reduce burdensome debts through a repayment plan.

Under the statute establishing the process, a trustee may be appointed to administer the debtor's estate and a protective order may be issued to require creditors to accept payments under a monthly repayment plan over a period of time up to three years, regardless of the terms of the contract. In addition, the law prevents interest from accruing, which is no small thing for those struggling with debts having high interest rates. 

A Chapter 128 proceeding puts into place an automatic stay against creditors under Wisconsin jurisdiction. This means creditors must cease attempting to collect debtors, placing liens against property, and garnishing wages. Creditors may still file a lawsuit against the debtor and obtain a judgement, but they may not attempt to collect it during a Chapter 128 action. In addition, statutes of limitation continue to toll during proceedings, giving a debtor additional relief.

Not all types of debt may be included in a Chapter 128 action, and there are certain prerequisites for filing. Debtors must also be cautious to follow the rules of the process and to avoid abuse and associated penalties. Working with experienced legal counsel helps ensure a debtor has clear guidance and strong advocacy through the process.

Sources:

Wisconsin Statutes: Section 128.21

Wisconsin Lawyer, "Chapter 128: Wisconsin's Bankruptcy Alternative," Jeffrey L. Murrell, May 2008, Volume 81, Number 5.

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
735 West Wisconsin Avenue
Suite 600
Milwaukee, WI 53233

Phone: 414-326-9231
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map