Chapter 128 Debt Amortization Plan

Is your current financial situation overwhelming? Does it feel like you are never going to get out of debt? Are you looking for a solution that does not involve declaring bankruptcy? If you live in Wisconsin and answered yes to any of these questions, you may be interested in a Chapter 128 Debt Amortization Plan.

Wynn at Law, LLC focuses on helping clients identify solutions when they are struggling with debt. Filing for bankruptcy is not the only option. Wynn at Law, LLC will work with you to find the best solution for your situation. Our approach makes sure that you understand your options and that all of your questions are answered during this difficult economic time. Schedule a free consultation with our experienced attorneys to discuss your options.

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What is a Chapter 128 Debt Amortization Plan?

A Wisconsin Chapter 128 Debt Amortization Plan is a low-cost alternative to bankruptcy using debt consolidation. This alternative will pause accruing interest and late fees, stop wage garnishment and does not require a court appearance in the majority of cases. A Chapter 128 is a faster and easier path to debt relief than filing for federal bankruptcy. Individuals who file for a Chapter 128 pay off their debt in three years or less.  

The best way to fully understand your options is to meet with an experienced attorney at Wynn at Law, LLC.

Requirements for a Chapter 128 Debt Amortization Plan

There are complicated differences between a Chapter 128 and filing for bankruptcy. However, filing for a Chapter 128 is often considered a simpler and easier process. To file a Chapter 128 Debt Amortization Plan, the individual must be a Wisconsin resident and must be able to prove he/she has a consistent source of income. 

When filing for a Chapter 128, an Affidavit of Indebtedness must be submitted along with a Petition to Amortize Debts and an Order. A neutral third-party trustee will then be appointed to oversee the collection of money and payments to creditors. Finally, all debts included in the Chapter 128 plan must be paid in full according to the schedule outlined in the payment (amortization) plan.

Types of Debt 

Individuals are not required to include all debt in a Chapter 128 plan. This enables you to structure your personalized debt plan to include only specific debts that make sense for your situation. A Chapter 128 can cover the unsecured debt such as credit cards, payday loans and medical debt. Secured debt, such as vehicle loans or home mortgages, cannot be included in a Chapter 128. 

The following types of debt are commonly included in a Chapter 128 Plan:

  • Credit Cards
  • Civil Judgments
  • Payday Loans
  • Medical Bills
  • Collection Accounts
  • Personal Loans

There are special circumstances for each of the items listed above and additional types of debt may also be included in a Chapter 128. By working with an experienced debt relief attorney, you will be able to identify the best debt restructuring for your Chapter 128 Debt Amortization Plan.

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Advantages Over Bankruptcy

A Chapter 128 Debt Amortization Plan can be a great alternative to bankruptcy. Below is a list of the reasons why an individual may choose a Chapter 128 over bankruptcy:

  • It is less expensive.
  • It is faster at resolving debt burdens.
  • It is less damaging to credit scores and credit reports.
  • An individual’s assets, property, and possessions are not put in jeopardy or required to be liquidated. 
  • There are fewer restrictions on the timing for filing a Chapter 128 plan: 
    • An individual can file more than once and can file more often (you can only receive a discharge from a Chapter 7 Bankruptcy once every 8 years).
    • A “Means Test” is not required.
    •  Credit counseling is not mandatory.
    • The individual does not need to attend a physical meeting of the creditors.

Do I need an attorney?

An experienced Wisconsin debt relief attorney can help you identify the best option for your situation. She can also help you evaluate what debt can and should be included in your Chapter 128 Affidavit of Indebtedness. While you are not required to have an attorney to file a Chapter 128, it will increase the likelihood of success and will make the process easier to manage.

Wynn at Law, LLC’s multiple office locations in Lake Geneva, WI, Delavan, WI, and Salem Lakes, WI allow its attorneys to conveniently serve all of Southeastern Wisconsin. If you are in need of an attorney for debt relief, please call 262-725-0175 or send us a quick online contact form.




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