Chapter 128

 

Alicia B. Navarrete, Chapter 128 Trustee
As the trustee assigned to your Chapter 128 filing, I will ensure that your payments are made on time each month to your creditors so you start rebuilding your credit immediately and continuously with each payment.

What is Chapter 128?
Chapter 128 is a program that is only available to Wisconsin State residents, and allows those who are struggling to pay unsecured debt to catch up on bills that may or may not be past due. What this program does for you, is helps to consolidate your debt over a three year period. In addition, the interest rate on your debt is dropped to 0% as of the date you filed for Chapter 128. As trustee, appointed to your case, I will make regular payments to your creditors on a regular basis so your credit improves with each payment.

Who qualifies for Chapter 128?
Anyone who is a Wisconsin resident and employed with a steady income is eligible to file for this special program. Bankruptcy is not always the answer for everyone, and in some instances it is even harder to qualify. Chapter 128 is an option that could appeal to many consumers if guided in the right direction. We hope to help the members of our communities establish a better future for themselves, as well as for their families.

Benefits of filing Chapter 128

  • You won’t be hassled by creditors or collection agencies.
  • It stops garnishments from your paycheck.
  • You do not have to make any court appearances.
  • Filing doesn’t negatively affect your credit score.
  • You have the ability to file more than once.
  • Interest rates from debt are dropped to 0 %.
  • Your not at risk of losing any property or other assets.

What’s the difference between Chapter 128 and Bankruptcy?
Chapter 128 allows you to pay off your debt in a three year period at a 0% interest, without affecting your credit report, whereas bankruptcy is reported to the credit bureau affecting your credit report for up to 7 years. Chapter 128 will not affect your credit report, in turn, making it easier for you to file for loans in the future.

Debt that CAN and CANNOT be included under Chapter 128
Secured debt is NOT eligible to be filed under Chapter 128, such as:

  • vehicle and mortgage loans
  • child support
  • co-signed loans
  • student loans

Debt that is unsecured qualifies under this state program, which include:
  • medical bills
  • credit card debt
  • personal loans that do not have co-signers

At Wisconsin Financial Services, we are happy to sit down and talk to you about the financial options that are available to you. If you decide you would like to file Chapter 128 via an attorney, we have a list of attorneys that you can contact.

Estimated Payment Table

Accumulated debt Approximate monthly payments
$5,000 $145 - $250
$10,000 $300 - $400
$15,000 $470 - $525
$20,000 $620 - $750
$25,000 $775 - $825
$30,000 $920 - $960

These are rough estimates of monthly payments that you could be making under Chapter 128. Your exact payments will be discussed with you at your initial meeting with the trustee.

Disclaimer: I am not an attorney, nor do I give legal advice. You should be aware that you may have other options and have the right to and are encouraged to consult an attorney if you have questions.