Tag Archives: Wisconsin bankruptcy code

Chapter 128 Wisconsin Bankruptcy Alternative

Chapter 128 Wisconsin Bankruptcy AlternativeOverwhelmed by debt? Making the necessary changes to take back control of finances is a key step, but sometimes easier said than done. If you’ve tried everything in your power, and still find yourself becoming further and further in debt, get the facts about your options. Rest assured, there is help available to you. It can be as simple as just reaching out. Make the call today and get some helpful advice. 888-997-4917

Doing Nothing, Fixes Nothing
If you are becoming further in debt, don’t let the fear of bankruptcy overcome the reality of the situation. Sure, bankruptcy could affect your credit score. However, the beauty of filing bankruptcy is that it provides a fresh start. This way, you’ll actually have a real chance at building back credit scores. Without some kind of action, your credit score will likely continue to fall due to missed payments, defaults, repossessions and potential lawsuits. Never discount bankruptcy as a realistic, reliable, and attainable solution because for many…it is just that.

Filing Bankruptcy in Wisconsin
Filing bankruptcy has been a life-saver for many Wisconsin residents. Financial relief can be obtained in as little as 3-6 months with a Chapter 7. You do lose your credit cards, but they’re likely a burden anyway, and you’ll be able to obtain new ones in as early as a year. There many other advantages to filing chapter 7 that most people are not aware of. For example, many personal property items are exempt, and you’ll get to hold on to the wages you earn and the property purchased after you have filed. Keep in mind that nothing will remove student loan debts, but filing bankruptcy may free up money in other areas to make your life a whole lot easier. Chapter 7 can only be filed once every six years; chapter 13 or chapter 128 may continue to be options in-between, if necessary.

Bankruptcy Alternative – Wisconsin Debt Relief
Chapter 128 is a decades old state-law debtor action, with a bankruptcy sounding label, although it is not bankruptcy. Chapter 128 may work well for someone who has more debt than they can handle, but can still repay with minimal help in structuring a plan. With Chapter 128, the debtor bypasses filing bankruptcy for a different course of action which includes debt repayment;forcing most creditors to accept monthly payments for as long as three years, and stopping interest from accruing on debts.Nearly any type of unsecured debt can be included in a section 128.21, although larger amounts for home and car loans often have monthly payments that are too big for debtors to be included. At the onset of the process, an automatic stay also goes into effect against creditors who are subject to the jurisdiction of the state of Wisconsin. Unlike bankruptcy, a chapter 128 debtor must repay all debts noted on their individual plan. (No debts are discharged through section 128.21.)

Debt Advisors Law Offices
If you’re interested in learning more about bankruptcy or Chapter 128, consult with a bankruptcy lawyer who understands the different roles of the debtor, creditors, attorney and trustee. An experienced bankruptcy attorney can clearly explain the differences between state debt relief and federal options. They will review your individual circumstances and provide the best option for you and your family. Request a free debt advisors consultation.

Wisconsin residents; protect your paycheck and stop wage garnishments.

MYDEBTADVISORA women who had been divorced in Wisconsin for nearly four years, was shocked to find out that her wages were going to be garnished because her ex hadn’t paid his student loans.  Because the student loans originated during the time of legal marriage, the woman was then held liable for repayment when her ex-husband neglected to pay. Midwestern states, including Wisconsin, have some of the highest wage garnishments by geographic region.  Studies indicate that basically the same proportion of women and men experience wage garnishments.  However, the most common cause of a wage garnishment involves the failure to pay child support.  In this case, men are six times more likely than women to have wages garnished.  If a debt collector or creditor gets permission from a court, or has the legal right to take money from your paycheck or tax return; your sex, race, income, status or best intentions will make no difference.  ADP Research Institute® used aggregated, anonymous payroll data from 2013, comprised of 13 million employees ages 16 and older for study found here.

Overview of WI wage garnishment process

The majority of wage garnishments are initiated when a creditor seeks a court order to obtain judgement which then allows them to take from your personal earnings to pay off a debt.  The collector provides notice of the intended action to the debtor, typically in the form of a ‘demand letter.’  The notice will state details about the garnishment including the debt source, garnishment amount, and duration of the garnishment.   Depending on the type of debt, certain creditors don’t need a court order.

  • If you owe money to a state or federal agency such as the IRS, your wages can be garnished without a court order.
  • If a court has ordered you to pay child support, your wages may be garnished without additional court action.

If there are no earnings to pull from the originating debtor, the collector or creditor may then seek payment from a spouse or co-signer.  A garnishment letter may or may not contain forms to request a hearing.  If you do nothing, the garnishment order will proceed.   If you wish to dispute, immediately contact a law firm with experience in preventing wage garnishments.

You have the right to dispute a wage garnishment

Title III of the Consumer Credit Protection Act limits the amount of employee’s earnings that may be garnished.  In some cases, the law may protect the debtor from being fired, and contain other protections for personal income earnings, pension and retirement programs.  U.S. Dept. of Labor Fact Sheet #30: Federal Wage Garnishment Law, Consumer Credit Protection Act’s Title 3. The wage garnishment law specifies that the garnishment restrictions do not apply to certain bankruptcy court orders.  When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay is created which stops creditors from taking any legal action or pursuing any collection against you, including wage garnishments.Debt Advisors Law Offices is familiar with federal laws, state protections, restrictions, exceptions,and bankruptcy laws regarding wage garnishments. Setup a free consultation at one of (6) convenient locations in the Milwaukee and Madison Metro areas.