Alternatives to Bankruptcy in Wisconsin (Chapter 128)
The basics of a Chapter 128
What is a Chapter 128A Chapter 128 is a possible alternative to filing bankruptcy that only exists in Wisconsin. A Chapter 128 is not a bankruptcy, but instead is a Debt Amortization where your unsecured debts are paid back over the course of three (3) years. (36 months) During this time all interest stops accruing and you make payments to a Chapter 128 Trustee, who then in turns makes the payments to the creditors.
There are two ways to do a Chapter 128. The first is to pay the Trustee directly, and the second is to have your wages garnished. If you choose to pay the Trustee directly, a 10% fee will be added to the total debt. If you choose a garnishment a 7% fee will be added to the total debt. These fees are in addition to any attorney fees and court costs.
Determining How Much I Will Pay in a Chapter 128Since a Chapter 128 is a 36 month repayment plan, the easiest way to calculate the monthly payments is to take your total unsecured debt, and multiply it by 1.1 if you are paying the Trustee directly, or by 1.07 if you choose to be garnished. You then take that total number and divide by 36, and that is your monthly payment.
For instance if I have $1,000.00 in unsecured debts, and choose to pay the Trustee directly, my total amount to pay off over 36 months will be $1,100.00. $1,100.00/36 comes to ~$30.56/month.