Wisconisn: Chapter 128

Chapter 128 Debt Amortization is also called debt consolidation or receivership. It allows you time to pay off unsecured creditors. You can include any unsecured debt including utilities, medical bills, or credit cards.

By filing under Chapter 128 bankruptcy, you can prevent wage garnishment. You can even stop utility shut-offs, preventing the utility companies from disconnecting your lights or home phone. You can also stop bill collectors from calling.

In Chapter 128, you pay one monthly payment that comes right out of your paycheck. The creditors get payments every quarter, or 4 times a year. You pay your balance in three years. If you want to pay more and pay off the debt sooner, there is no penalty for doing so.

With Chapter 128 bankruptcy law, the amount of money you owe stays exactly the same as the day you filed. Once you file, there is no added interest. Therefore, it's much easier to pay down your debt.

A Chapter 128 is a great way for people who have gotten into a tough spot to get their bills back under control without having to file a bankruptcy.

That is awesome. I was wondering about the interest part. Nothing I have read about it said anything like that. I am thinking about doing it.

Another question: Who is a good lawyer to use for this? I know it does not cost that much out front.

A few more benefits: it is not a bankruptcy and the creditors specifically cannot report to your credit report that it is a bankruptcy. So you basically get the benefits of a bankruptcy without it going on your credit.

Also you can include secured creditors. However their balance would have to be paid within three years. So it wouldn't be feasible to stick a mortgage or a very large car note in the plan. But if you've taken a title loan, it is easy to include them too.

As to the interest -- it does stop as of the date you file, provided you complete/discharge the 128 plan. If you don't successfully make all the payment and it gets dismissed, the creditors can go back and recalculate the interest as if you never filed.

So if I have taken a title loan out through Citifinanical than I could put that in it also?

Yes, you could stick Citifinancial in the 128 plan. Their balance will be paid over 3 years like anyone else in your plan.

One thing to be careful of (I've seen many times) --- your financing contract with Citi requires you to keep insurance on the vehicle at all times while they are a lienholder, and the courts support those clauses. If your insurance ever gets cancelled, even while the 128 is ongoing, they can motion for relief due to inadequate protection and the courts will then let them repo.

Jeff Murrell is a great attorney for this and I just filled a Ch 128 myself with him!!