Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

Is debt settlement a wise choice for Wisconsin consumers?

Wisconsin residents have higher than average credit scores compared to residents of other states, which is indicative of their ability to manage to live within their means. Also, on average, a Wisconsin resident's credit card debt is $4327, almost $100 less than the national average.

But even with those encouraging statistics, it is inevitable that some consumers are going to wind up struggling to pay down their debts. One method of taming the debt monster is debt settlement. Creditors agree to accept a greatly reduced sum that is far less than the original debt. They agree to these terms in order to get some recovery on the outstanding debt.

Wisconsin consumers who could benefit most from these arrangements are those with medical debts who are in poor health, those who are no longer earning as much income and those who are hopelessly mired in debt.

But there is a caveat, however. These credit card companies may still be pursuing debtors for debts that are no longer recoverable once the statute of limitations has elapsed.

Wisconsin creditors are governed by the Fair Debt Collection Practices Act. One of the protections the Act offers consumers includes not contacting anyone who doesn't live or is present in the original debtors home about the alleged debt, unless:

-- The creditor is attempting to ascertain the debtor's location if it is reasonable that he or she changed jobs or moved.

-- The debtor gave consent.

-- The creditor is trying to seize property owned by the debtor to pay off the debt.

In those cases, creditors are limited to only mailing a single notice each month if debtors request that the creditor stop contacting them. However, if the creditor obtains a judgment regarding the debt, this no longer applies.

Collection agencies in the state can only charge a maximum interest rate of 5 percent, and residents have wage protection of 80 percent of their disposable weekly earnings, or 30 times the federal minimum wage per hour.

As there are many different ways to resolve unpaid debts, including through filing for consumer bankruptcy, Wisconsin residents should seek financial and legal advice to explore all options.

Source: nationaldebtrelief.com, "Wisconsin," accessed Nov. 27, 2015

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

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

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.