Using Chapter 128 As A Bankruptcy Alternative

Wisconsin has a unique law for debt relief that has been on the books since 1937 which we refer to as a Chapter 128. This is a non-bankruptcy alternative that lets you pick which debts (like high interest payday loans and credit cards, utility bills, medical bills and other unsecured debt) you want to pay off (with one monthly payment) in full over 36 months (three years) at 0 percent interest.

Any person whose principal source of income consists of wages or salary may file a Chapter 128. Secured creditors (mortgage and car loans) can go to State Court to have their debts kicked out of your Chapter 128 Plan.

You can stop collection, utility disconnections (WE Energies has exceptions), garnishments, and creditor harassment once your case is filed (there is a filing fee paid to the clerk of courts) and a judge signs a protective order.

How It Works

A trustee is appointed to your case and notifies and pays (monthly or quarterly) your creditors. The trustee gets a fee (7 percent if the payment is deducted from your check or 10 percent if you pay directly) that is included in your monthly payment. You pay some attorney fees up front and the rest can be paid off in the plan (included in your monthly payment), but your case will be dismissed if you don't make your payments.

How It Differs From Bankruptcy

The Bankruptcy Code requires that you: list all your debts; provide detailed information about your finances and assets; go to court and testify under oath; complete two courses (credit counseling and financial management) and other burdensome requirements. Then you can get a discharge of some or all of your debts.

You can wipe out your debts in a Chapter 7 ("fresh start") Bankruptcy once every eight years and there are other requirements in a Chapter 13. You may not be able to refile right away if your case is dismissed.

Helping You Make The Right Choice

Attorney Patrick Rupich will help you decide which type of debt relief is right for you.

Our law firm serves the Milwaukee Metropolitan area and Southeast Wisconsin, and offers no-charge consultations with weekend and weeknight appointments available!

Call Rupich Law Offices today at 414-482-5319 for your no-charge consultation. Or browse our website for more information. Please contact us if you have any other questions or comments.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.