Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

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.


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
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
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

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Law Office Map

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

Phone: 920-280-3838
Map & Directions