Chapter 128 Debt Consolidation

debt-consolidation

Wisconsin Debt Consolidation Attorney
Chapter 128 Milwaukee

Many people struggle with credit cards that carry 20-30% interest rates. They make minimum payments month after month only to find their balances never seem to go down. Many turn to “not for profit” consumer credit counseling agencies only to find out later that they are still paying most of their debt and interest. There is a solution for people who want to pay their unsecured debts (credit cards, utility bills, medical bills, payday loans, etc.) but still need some help.

Wisconsin Chapter 128 is a program under Wisconsin state statutes that allows an individual residing in Wisconsin to consolidate their unsecured debts (i.e. credit cards, medical bill, utility bills, payday loans) into one monthly payment over a period of 36 months.  The filing of a Wisconsin Chapter 128 consolidation protects the wages and property of the individual filing by preventing the garnishment of wages and levy of property for the collection of debts included in the Chapter 128 consolidation.

How do I get a case filed?

The case is started by working with your debt consolidation attorney, who will draft and file a Petition, Affidavit of Debts and Order Enjoining Creditors and Appointing Trustee.  These documents will then be filed in circuit court of the county (i.e. Milwaukee, Waukesha) where the debtor resides.

Who Qualifies?

All Wisconsin residents can qualify to file for a Wisconsin Chapter 128 debt consolidation, if they can demonstrate that they can afford to repay their debt over a 36 month period.  Our experienced debt consolidation lawyers will take a close look at your income and living expenses to insure that the 128.21 payment is affordable and the best alternative for you.

What debts can be included?

The Wisconsin Chapter 128 consolidation requires that the entire balance of the debt included in the consolidation be paid off within the 36 months. Unsecured debts, those without pledged collateral, work best. Some examples common debts included in a Wisconsin Chapter 128 debt consolidation are listed below:

  • Credit Cards
  • Payday Loans
  • Medical Debts
  • Debts placed at Collection Agencies
  • Deficiency Balances (after repossession)
  • Some Past Due Utility

Some debts secured with collateral can be included, but with great caution. The Statute allows creditors to go after their collateral even if they are included in the restructured payment plan. Federal debts can’t be included.  At Lombardo Law Office, an experienced debt consolidation attorney will take the time to individually analyze your debt situation to make certain that a Chapter 128 is best for you.

What is the filing fee?

The filing fee is $35 in Milwaukee County, $31.50 in all other counties. (i.e. Waukesha Washington, Dodge, Racine, Kenosha)

What happens after the papers are filed?

The assigned court signs an Initial Order Enjoining Creditors and Appointing Trustee. The trustee then holds a noticed meeting to consider the plan for confirmation. You do not have to attend this meeting. After the meeting the trustee submits a recommendation to the court for the plan to be either confirmed or dismissed.

How are plans funded?

Plans are funded by payroll deduction, unless the debtor’s income is from some other source. Payments must commence with the first paycheck the employer processes after receiving notice of the case.

May creditors object to a plan?

Yes, creditors may object to a plan and request a hearing. However, objections are rare.  If an objection would occur, the trustee will make every effort to resolve the matter in dispute. In rare instances, a hearing is necessary.

Does the debtor have to appear in court?

No, except in the rare instance when a creditor objects to the plan and the court requires testimony from the debtor. This does not happen often.

Does a debtor need an attorney?

A debt consolidation attorney is recommended, but not required. The fees for a debt consolidation attorney usually are quite modest and can be paid through the plan.

Do creditors need to file a claim?

The initial papers filed by the debtor include an Affidavit of Debts. This paper lists the name and address of each creditor to be paid, the account number and the balance due as of the date of filing. Creditors are encouraged to file a claim if the amount scheduled on the Affidavit is not correct. Claims may be filed at or prior to the meeting. If a creditor does not file a claim, the balance shown on the Affidavit of Debts is presumed to be correct.

When do payments to creditors begin?

Payments to creditors begin after the Court confirms the Wisconsin Chapter 128 plan. Confirmation usually occurs within three months after the case starts. Disbursements are made every three months, unless the debtor has good cause to request monthly disbursements.

Speak to a Wisconsin Debt Consolidation Attorney Now!

Lombardo Law Office can help you eliminate your unsecured debt interest free while preventing garnishments and utility shut offs without having to file for bankruptcy. One of our experienced and skilled debt consolidation attorneys will be happy to sit down with you and take the time to properly analyze your situation to determine if a Wisconsin Chapter 128 debt consolidation is right for you.

If you would like to learn more about Wisconsin Chapter 128 debt consolidation, or would like to schedule a FREE CONSULTATION with us, please Contact Us or call our help line at 414-543-3328.

Listing of circuit court websites
Wisconsin Lawyer Article describing Chapter 128