Debt Relief with Wisconsin Section 128

Mar 24, 2021


Many people in Wisconsin are struggling with debt, however, people do not like to talk about their financial problems. Maybe that is why many people are not aware of a Wisconsin Section 128. Let’s discuss what a Wisconsin Section 128 is and how it can help get you out of debt.

What is a Section 128?

A Section 128 is a debt consolidation program through the State of Wisconsin Circuit Court system, legally called a Section 128.21. It allows you to choose what creditors you want in the repayment plan and forces them to accept smaller payments over a longer period. An appointed Trustee receives and distributes payments to your creditors. Your creditors get paid back 100% over the 36-month program at ZERO percent interest. Any creditors included in the repayment program cannot garnish your wages or must stop garnishing your wages once the Section 128 is filed with the court.

Debts Allowed in Section 128

A Section 128 can help you take care of your unsecured debt, such as medical bills, credit cards, pay day loans and money judgments. A Section 128 cannot prevent utility shut off, but it can help repay the debt. Debts with collateral attached, known as secured debts, can not be included, such as vehicle or home loans.

Help Avoid Bankruptcy

A Wisconsin Section 128 is not a bankruptcy, it is an alternative to bankruptcy. If you can take care of your debt before it becomes too much to repay, you can avoid filing bankruptcy. For every $10,000 of debt put into the Section 128 your payment is approximately $300 a month. Once your debt becomes more than you can repay, a Chapter 7 Bankruptcy can help eliminate your unsecured debt. If you are behind on your secured debt such as a car loan or home mortgage, a Chapter 13 Bankruptcy can help you get current and take care of your unsecured debt.

Free Consults

At Pedersen Law Office, LLC we understand how stressful being in debt can be; that is why we offer free consults. We will meet with you personally to discuss your circumstances and help you figure out the best way for you to move forward. Our law office serves the communities of Appleton, Neenah, Menasha, Oshkosh, Green Bay and their surrounding areas.

Category: Bankruptcy

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