For debtors in Wisconsin, the options for debt relief are many. You could choose a commercial debt relief company or debt consolidator. These programs often appear with slick advertising, making it seem like they can perform some special “magic” that will make your debt go away. You should be very cautious when considering such services, as they often cost you up front and fail to deliver on their promises.

There is federal bankruptcy relief. Bankruptcy is a powerful tool that can “discharge” many types of debt, eliminating creditor’s ability to collect on those debts. But depending on which chapter you file, Chapter 7 or Chapter 13, it may take a few years to complete the process and it some debts, like student loans or child support cannot be discharged. A bankruptcy attorney can help you determine if this is your best option.

But Wisconsin residents have an additional means of obtaining debt relief. For some, Wisconsin statutes Chapter 128 may provide a viable solution to their debt problems. Chapter 128 is somewhat like a Chapter 13 in federal bankruptcy law, for instance, it too has an automatic stay that prevents included creditors from attempting to collect their debts.

One element that is unique is that it prevents the growth of interest on unsecured debts during the repayment period. Another difference is that it demands the repayment of all of your debts. The plans are limited to a 36-month repayment period. The debtor must be able to repay all of the debt during that period. A successful Chapter 128 filing would help you avoid a bankruptcy on your credit record.

Depending on the type of debt you are carrying, a Federal bankruptcy Chapter 7 or Chapter 13, or a Wisconsin Chapter 128 filing may work best. These laws are complex and making the necessary calculations are intricate, so it may be necessary to speak with an attorney who can explain the relevant differences and how they apply to your debts.