Josephine Norton
Chapter 128 is a bankruptcy alternative available to residents of Wisconsin. It is a debt consolidation repayment plan that allows debtors to pay off items that are not considered collateral debts, such as credit cards, medical bills, personal loans, and miscellaneous bills. Unlike bankruptcy, Chapter 128 does not require the declaration of all debts, assets, and income, nor does it involve producing tax records or filing income tax returns. While Chapter 128 can provide a simpler process for debt reorganization, it does not offer all the benefits of bankruptcy, such as reducing or eliminating debt. As for title loans, individuals typically face two common forms of bankruptcy: Chapter 7 and Chapter 13. While Chapter 7 involves the sale of non-exempt assets to repay unsecured debts, Chapter 13 allows for more affordable repayment terms and the potential to keep one's car and title loan.
| Characteristics | Values |
|---|---|
| Chapter 128 | A bankruptcy alternative available in Wisconsin |
| Filing process | Simple petition to reorganise debts and an affidavit listing debts |
| Debts covered | Unsecured debts such as credit cards, payday loans, speeding tickets, medical bills, late utility bills and rent payments |
| Debts not covered | Secured debts such as mortgages and car loans |
| Court filing fee | $31.50 in most Wisconsin counties, $35 in Milwaukee County |
| Additional electronic filing fee | $20 |
| Benefits | Protection from interest accrual, wage garnishment, asset attachments, and utility shut-offs |
| --- | |
| Chapter 13 | A form of bankruptcy that allows individuals to reorganise and repay debts over a longer period |
| Title loans | A type of loan where individuals use their vehicle as collateral for immediate cash |
| Impact of Chapter 13 on title loans | May allow individuals to keep their car and title loan, depending on the attorney's evaluation |
| Title loan options during Chapter 13 | Reduced interest rates, restructured loan, or surrender of the car and stoppage of payments |
What You'll Learn
Chapter 128 is a bankruptcy alternative in Wisconsin
Chapter 128 is a bankruptcy alternative available to residents of Wisconsin. It is a debt consolidation repayment plan that allows debtors to pay off items that are not considered collateral debts, such as credit cards, medical bills, personal loans, and miscellaneous bills. Unlike traditional bankruptcy, Chapter 128 does not require debtors to declare all debts, assets, and income. Additionally, debtors going through Chapter 128 do not need to produce tax records, file income tax returns, undergo mandatory credit counseling, or attend court proceedings.
To initiate the Chapter 128 process, debtors fill out a petition to reorganise their debts and an affidavit listing the specific debts they wish to include. Notably, Chapter 128 covers unsecured debts, including credit cards, payday loans, speeding tickets, medical bills, late utility bills, and rent payments. However, it excludes secured debts, such as mortgages and car loans.
The debtor must also commit to making regular payments over a period of up to three years. With the assistance of a trustee, they formulate a repayment plan by totalling the debts plus the trustee's fees and dividing the sum by 36 to determine the monthly repayment amount. The debtor then submits the petition, affidavit, and repayment plan to the court in their county of residence.
The court issues a protective order, preventing interest from accruing on the debts, halting wage garnishment or asset attachments by creditors, and averting utility shut-offs. The cost of filing Chapter 128 is generally under $50, and it is recommended that payments to the trustee be made through a wage withholding plan.
While Chapter 128 simplifies the process of debt reorganisation and does not impact the credit report like bankruptcy, it is important to note that it does not offer all the benefits of bankruptcy. Chapter 128 plans may not be able to reduce or eliminate debt to the same extent as a debt discharge under bankruptcy.
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Chapter 128 does not require declaring all debts, assets and income
Chapter 128 is a bankruptcy alternative available to residents of Wisconsin. It is a debt consolidation repayment plan that allows debtors to pay off items that are not considered collateral debts, such as credit cards, medical bills, personal loans, and miscellaneous bills. Unlike bankruptcy, Chapter 128 does not require declaring all debts, assets, and income.
When filing for Chapter 128, debtors only need to list the unsecured debts they wish to include in the repayment plan. These can include credit cards, payday loans, speeding tickets, medical bills, late utility bills, and rent payments. Secured debts, such as mortgages and car loans, cannot be included in a Chapter 128 plan.
The process of filing for Chapter 128 is much simpler than bankruptcy. Debtors fill out a petition to reorganise their debts and an affidavit listing the specific debts they want to include. They also need to assert their commitment to making regular payments over a period of up to three years. With the help of a trustee, debtors can create a repayment plan by totalling the debts plus the trustee's fees and dividing that amount by 36 to get a monthly repayment amount.
While Chapter 128 offers a simpler and less invasive process than bankruptcy, it is important to note that it does not provide the same benefits. Chapter 128 plans cannot reduce or eliminate debt in the same way that bankruptcy can. Additionally, Chapter 128 may still appear on an individual's credit history, which could impact their ability to obtain loans in the future.
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Chapter 128 does not require tax records, tax returns, credit counselling or court
Chapter 128 is a bankruptcy alternative available to Wisconsin residents. It is a debt consolidation repayment plan that allows debtors to pay off items that are not considered collateral debts, such as credit cards, medical bills, personal loans, and miscellaneous bills. Unlike traditional bankruptcy, Chapter 128 does not require debtors to declare all debts, assets, and income. This means that certain types of loans, such as mortgages, car loans, and other secured loans, cannot be included in a Chapter 128 plan.
One of the key advantages of Chapter 128 is that it does not require the production of tax records or the filing of income tax returns. This simplifies the process for debtors and removes the burden of having to gather and submit extensive financial documentation. The absence of mandatory tax reporting requirements under Chapter 128 provides a degree of convenience and privacy for individuals seeking debt relief.
Additionally, Chapter 128 does not mandate credit counselling. While bankruptcy often involves mandatory credit counselling sessions, Chapter 128 offers a more streamlined approach. Debtors seeking relief under Chapter 128 can avoid the time and expense associated with mandatory credit counselling, making it a more accessible option for those facing financial challenges.
Furthermore, Chapter 128 does not require court involvement. Unlike traditional bankruptcy, which typically involves court proceedings, Chapter 128 is administered through the court system without the need for court appearances. This aspect of Chapter 128 helps to reduce the legal complexities and potential costs associated with debt reorganization, making it a more efficient and cost-effective option for debtors.
While Chapter 128 offers a simplified process compared to bankruptcy, it is important to note that it may not provide the same comprehensive debt relief. Chapter 128 plans cannot reduce or eliminate debt to the same extent as bankruptcy. Additionally, while Chapter 128 is designed to help prevent negative impacts on credit reports, there have been reports of it appearing on some individuals' credit histories due to the unique nature of the law. As such, it is advisable to consult with a lawyer to determine the most suitable course of action based on one's specific circumstances.
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Chapter 128 can be filed repeatedly
Chapter 128 is an alternative to bankruptcy for Wisconsin residents. It is a debt consolidation repayment plan that allows debtors to pay off their unsecured debts through the court system. Unlike bankruptcy, Chapter 128 does not require debtors to declare all their debts, assets, and income, nor do they need to produce tax records or go through credit counselling.
One of the benefits of Chapter 128 is that it can be filed repeatedly. There are no limitations on the number of times a person can file for Chapter 128, unlike bankruptcy law, which imposes restrictions on how soon a person can file again. This makes Chapter 128 a more flexible option for those seeking debt relief.
When filing for Chapter 128, debtors fill out a petition to reorganise their debts and an affidavit listing the specific debts they want to include. These typically include unsecured debts such as credit cards, payday loans, medical bills, and rent payments. Secured debts like mortgages and car loans are excluded. The debtor also commits to making regular payments over a period of up to three years.
With the assistance of a trustee, debtors can create a repayment plan by totalling their debts, including the trustee's fees, and dividing this amount by 36 to determine a monthly repayment amount. The court then issues a protective order, preventing interest from accruing on the debts, halting wage garnishment, and protecting against asset attachments by creditors.
While Chapter 128 offers a viable alternative to bankruptcy, it's important to note that it doesn't provide the same level of debt reduction or elimination as bankruptcy. It's always advisable to consult with a lawyer to determine the best course of action for your specific financial situation.
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Chapter 128 does not affect credit reports
Chapter 128 is a bankruptcy alternative available to residents of Wisconsin. It is a debt consolidation repayment plan that allows debtors to pay off items that are not considered collateral debts, such as credit cards, medical bills, personal loans, and miscellaneous bills. Unlike filing for bankruptcy, Chapter 128 does not require debtors to declare all debts, assets, and income. It also does not require the production of tax records, the filing of income tax returns, mandatory credit counseling, or court appearances.
While Chapter 128 does not affect credit reports like bankruptcy does, some individuals have reported that Chapter 128 appeared on their credit histories due to the unique nature of the law. It is important to note that Chapter 128 plans cannot reduce or eliminate debt in the same way that a debt discharge under bankruptcy can. Therefore, while Chapter 128 may not directly impact an individual's credit report, it also may not provide the same level of debt relief as bankruptcy.
When filing for Chapter 128, debtors fill out a simple petition to reorganize their debts and an affidavit listing the unsecured debts they wish to include. Debtors also need to assert that they will make regular payments over the course of up to three years. With the help of a trustee, a repayment plan is created by totaling the debts plus the trustee's fees and dividing by 36 to get a monthly repayment amount. The debtor then submits the petition, affidavit, and repayment plan to the court, which issues a protective order preventing interest from accruing on the debts, wage garnishment, or asset attachments by creditors.
While Chapter 128 can provide a way to reorganize and repay debts without the same level of negative impact on credit reports as bankruptcy, it is important to note that it may not be suitable for everyone. It is always recommended to consult with a lawyer or financial advisor to determine the best course of action for an individual's specific situation.
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Frequently asked questions
Chapter 128 is a bankruptcy alternative for Wisconsin residents. It is a debt consolidation repayment plan through the court system. It covers unsecured debts such as credit cards, payday loans, speeding tickets, medical bills, late utility bills and rent payments.
Chapter 128 does not directly help with title loans. However, it can help individuals facing urgent financial needs and limited access to traditional forms of credit. Title loans are a specific type of loan in which individuals use their vehicle as collateral to secure immediate cash.
Chapter 128 is a simpler process than filing for bankruptcy and is less expensive. It also does not need to be declared on all debts, assets and income, and does not require tax records or court appearances.
