Wisconsin State Action 128 Lawyer - Wisconsin
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State Action 128, Chapter 128
What Exactly is State Action 128?
This is also known as a Chapter 128 and is an althernative in Wisconsin to traditional bankruptcy. While some people think of it as a bankruptcy action, it is more of a way of a person or married couple to establish a personal repaymentplan.
The basic run down of this action is that it enables a person or married couple to set up a payment plan for each of the debts he/she/they choose to include in the process. While bankruptcy proceedings require all debts be included in the petition, a State Action 128 allows a person to select which debts are to be included. This makes sense because certain debts do not fit well into this type of action. At the end of the process, the goal is to have a filer repay any debts listed in the action.
When a debt is included in this type of action, it needs to have a fixed payment schedule set up for up to a three year period. This requires credit card companies, utility companies and other creditors to have interest charges frozen in order have a solid payment plan in place. That doesn't mean that interest accrued prior to filing is exempt. Interest gets frozen once the 128 is filed.
Another difference between a 128 and bankruptcy is the amount of time a filing stays on one's credit report. A State Action 128 stays on a credit report for seven years where a Chapter 7 or 13 bankruptcy stays on for ten years. Also, because the intent is have a filer repay all of his/her/their debts, a person with a credit score below 500 make actually be able to increase their score upon completing all of the scheduled payments.
Filing a 128 is also much less intrusive and less expensive than a bankruptcy. Usually, there is no court appearance required. In fact, most of these actions can be handled exclusively through the mail.
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