If you struggling to manage your bills, filing for bankruptcy provides an opportunity to start fresh. However, though it is the right option in many cases, bankruptcy can have long-term implications for your financial future.
If you are a Wisconsin resident and considering other options to reduce your debt, here is what you need to know about Chapter 128.
What is Chapter 128?
Chapter 128 is an alternative to bankruptcy in Wisconsin that helps people control their debt. Under this option, you choose which debts you would like to reorganize and set up a three-year, interest-free repayment plan.
Only unsecured debts, such as credit card charges, medical expenses and utility bills, are eligible. Chapter 128 does not reduce the amount you owe. Instead, it makes the payments more manageable.
How can Chapter 128 help me?
Chapter 128 can stop wage garnishment and help get a handle on your bills without many of the restrictions of filing for bankruptcy. Unlike with Chapter 7 and Chapter 13, you do not need to go to court, provide tax statements, declare all of your debts or list your petition in the newspaper. Additionally, this alternative is less likely to impact your credit history, and you can file more than once.
Not everyone will find this is the right option for them. Chapter 128 does not cover secured debts like mortgages or car payments. It also does not reduce or eliminate what you owe. Your legal counsel can help you determine whether Chapter 128 or another debt-reduction alternative is right for you.