Wisconsin Chapter 128 as a Bankruptcy Alternative

Chances are you are familiar with the most common types of bankruptcy such as Chapter 7, Chapter 11, and Chapter 13. You are likely not as familiar with a unique alternative to bankruptcy that is only available in Wisconsin. Businesses and individuals can both pursue rights and protections under Wisconsin Chapter 128.

At Steinhilber Swanson LLP, we have extensive experience pursuing all types of bankruptcy and debt relief under the United States Bankruptcy Code and Wisconsin Chapter 128. We can answer your questions, examine your situation, and provide you with our recommendations about the best debt relief option for your unique situation.

What is a Chapter 128 Receivership for a Business?

A Chapter 128 receivership is a lesser-known alternative to Chapter 11 business bankruptcy that might be a perfect fit to resolve the financial difficulty your company is facing. This is also known as an Assignment for the Benefit of Creditors

What is Chapter 128 Debt Amortization?

A Wisconsin Chapter 128 Debt Amortization Plan is an alternative to consumer bankruptcy available to individuals in Wisconsin. It is typically used to repay unsecured debt (things like credit cards, medical bills, payday loans, etc.) and requires a proposal to repay a debt in full over a 3-year span, via payments made through a Trustee.

Its benefits include putting a stop to accrual of interest, accrual of late fees, wage garnishments, and other obstacles facing individual debtors. Debts are paid off in three years or less, which is often significantly faster than the same debts would be paid under their regular terms with compounding interest. Furthermore, the Chapter 128 Amortization can be targeted to address specific debts, whereas bankruptcy requires listing all debts. Lastly, Chapter 128 is not a bankruptcy filing, and should not be reported as such to the credit bureaus, meaning it will have less of a negative impact on your overall credit score than a bankruptcy filing would have.

The attorneys’ fees and court costs for a Chapter 128 Amortizations are significantly less than those for a bankruptcy as well, meaning that in appropriate cases, Chapter 128 is a simpler and overall more affordable option than a Chapter 13 bankruptcy repayment plan.

Is Wisconsin Chapter 128 the Alternative You Need?

No two cases are exactly alike. You can rely on our attorneys to thoroughly examine your circumstances and provide you with the information you need to make a confident decision about how to proceed. Call 866-381-4391 or contact us online to schedule a consultation. We have offices in Oshkosh, Madison, and Milwaukee, and serve clients state-wide. Phone and video consultations are available.