Has anyone from Wisconsin filed Chapter 128(an alternative to bankruptcy, in which you consolidate debt and pay monthly installments for 3 years)?

How is it working for you? Any good/bad experiences to share? I'm curious to know how long the filing process takes and if any creditors refused to go on the program.

saxy, I'm not from Wisconsin, but I've never heard of this before, is it something only for Wisonsin residents?

Yes, I believe Wisconsin is the only state that has this. Since Wisconsin is so lax on payday loans, it's refreshing to know that they offer this program to consolidate CC's and PDL's and pay off through a trustee.

sounds kinda cool, to bad all states didn't have some option like this.

I filed my 128 in Feb. It was very easy, and the creditors don't have a choice-they must accept the program, that's the law. I used attorney Jeff Murrell, and everything was done via email, with the upfront cost only $53. I would highly recommend this to any Wisconsin resident, it has been absolutely wonderful.

I'm still amazed with your 128 deal, do creditors out of your state have to adhere also?

As long as you live in Wisconsin, any creditor you have can be involved in this no matter what state they are in. It's similar to bankruptcy laws..your creditors don't have a choice, if you place them in the program they have to follow the rules.

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Yeah it's called a voluntary ammortization of debts. The good thing about it is that it does not show up on your credit report as a bankruptcy, and creditors are specifically forbidden from reporting that the account was included in a bankruptcy.

So basically you get the protections of a chapter 13 bankruptcy, without really going bankrupt.

Only problem is that the creditors have to get repaid 100% of their claim amount (unlike a 13 which may let you pay as little as 10%). So if you've got lots of debt, and only 3 years, that can be a very high monthly payment to the 128 trustee.

That sounds like it would help a number of people out. It is too bad that every state doesn't offer that.

Does anyone know if Nebraska offers something like this?

Ladybug, I'm with you, sounds like something everystate should look into, seems like it would save a lot of headaches all around. I wonder if Wis is the only state that offers that?

WI is a great state to live in because of Chap 128 as well as the 6 year Statute of Repose which extinguishes the debt upon expiration of SOL.

Bella....I used the same attorney, and I'm going to be making my first payment next week--I wish I would have thought more about it before filing and placed more creditors on the plan though. But it seems to be a good choice for me anyways.

oops...that was me.

what is the 6 year statute of repose

In 2 states, WI and MS, once the Statute of Limitations has expired (WI -6, MS -3) the debt is legally extinguished and is no longer collectible. In the other 48 states, expiration of SOL limits the time they can legally file suit (affirmative defense) the unpaid debt is still collectible. But, federal Credit Reporting guidelines still apply in all states.

It's an outstanding plan and I wish I would have known about it sooner. I had debt growing late and had trouble keeping up. If you can handle the monthly payment, it's a godsend. It stops all interest and troubling phone calls. I'm about finished with the plan and am going to take all the rest of my debt and go through it again. I don't use much credit anymore (except for car, house) as I've learned from my mistakes. I was able to get a car loan while on the plan as well. I know that when I start the second plan through, I will be debt free (except for major loans like car, house, student loan) in just six years with tens of thousands of dollars in debt (or more).