Wisconsin Chapter 128 - Any Experience?

saxy, I'm not from Wisconsin, but I've never heard of this before, is it something only for Wisonsin residents?

Yes, I believe Wisconsin is the only state that has this. Since Wisconsin is so lax on payday loans, it's refreshing to know that they offer this program to consolidate CC's and PDL's and pay off through a trustee.

sounds kinda cool, to bad all states didn't have some option like this.

I filed my 128 in Feb. It was very easy, and the creditors don't have a choice-they must accept the program, that's the law. I used attorney Jeff Murrell, and everything was done via email, with the upfront cost only $53. I would highly recommend this to any Wisconsin resident, it has been absolutely wonderful.

I'm still amazed with your 128 deal, do creditors out of your state have to adhere also?

As long as you live in Wisconsin, any creditor you have can be involved in this no matter what state they are in. It's similar to bankruptcy laws..your creditors don't have a choice, if you place them in the program they have to follow the rules.

Yeah it's called a voluntary ammortization of debts. The good thing about it is that it does not show up on your credit report as a bankruptcy, and creditors are specifically forbidden from reporting that the account was included in a bankruptcy.

So basically you get the protections of a chapter 13 bankruptcy, without really going bankrupt.

Only problem is that the creditors have to get repaid 100% of their claim amount (unlike a 13 which may let you pay as little as 10%). So if you've got lots of debt, and only 3 years, that can be a very high monthly payment to the 128 trustee.

That sounds like it would help a number of people out. It is too bad that every state doesn't offer that.

Does anyone know if Nebraska offers something like this?

Ladybug, I'm with you, sounds like something everystate should look into, seems like it would save a lot of headaches all around. I wonder if Wis is the only state that offers that?

WI is a great state to live in because of Chap 128 as well as the 6 year Statute of Repose which extinguishes the debt upon expiration of SOL.

Bella....I used the same attorney, and I'm going to be making my first payment next week--I wish I would have thought more about it before filing and placed more creditors on the plan though. But it seems to be a good choice for me anyways.

oops...that was me.

what is the 6 year statute of repose

In 2 states, WI and MS, once the Statute of Limitations has expired (WI -6, MS -3) the debt is legally extinguished and is no longer collectible. In the other 48 states, expiration of SOL limits the time they can legally file suit (affirmative defense) the unpaid debt is still collectible. But, federal Credit Reporting guidelines still apply in all states.

It's an outstanding plan and I wish I would have known about it sooner. I had debt growing late and had trouble keeping up. If you can handle the monthly payment, it's a godsend. It stops all interest and troubling phone calls. I'm about finished with the plan and am going to take all the rest of my debt and go through it again. I don't use much credit anymore (except for car, house) as I've learned from my mistakes. I was able to get a car loan while on the plan as well. I know that when I start the second plan through, I will be debt free (except for major loans like car, house, student loan) in just six years with tens of thousands of dollars in debt (or more).

The $53 is to just get it started. Atty. Murrell charges an $800 flat fee, and the trustee receives 7-10% of total debt owed. These are taken out over the course of the first certain amt. of payments. $53 is very enticing...but there ARE other fees included. I'd love to hear others who have done this.

Would you please elaborate on what other fees are included??? Please list them all

Let me ask this. If he charges $800 and the trustee gets %10 and your deght is 10k than the total amount of the fees are about 2k. Is this really worth it?

i a have been in a ch.128 for just about a year and i have to go to court on may 18th because i am being sued by one of the creditors that i included in the ch.128 and to tell u the truth i am still getting mail and phone calls even at work from collection agency on loans and credit cards that were included seems like the trustie tells me to call the attorney and the attorney tells me to call the trustie i am not really getting any where except the fact that they have no problem taking the money from my paycheck every time i get paid i think the ch.128 was a big mistake to tell u the truth

continued from my other post i also for got to add that none of the interst seems to stop adding up either meaning i had a credit card that was added at 300.00 when i started and now its up to 600.00 if your thinking about doing a ch 128 do not use miller and miller they suck

continued from my last two posts oh yeah this is even more ironic i received a letter in the mail from another attorney saying he noticed that i am getting sued and wanted to let me know that a ch128 would be a good option to stop the judgement against me and to give him a call lol i am suppost to be in a ch.128 for the last year and i am still getting sued what a mess sorry i am just venting u guys wanted to know how a ch.128 is so i had to let you know how mine is going

I filed a Chapter 128 in 2003 paid it off in 2006. It is now 2009 and i still have creditors tring to collect, high balances reported, charged off as bad debt reported, one creditor just removed a Chapter 13 from under its trademark that they reported for 5 years. Wisconsin Chapter 128 is a JOKE and I'm still disputing credit report after credit report with no help from Wisconsin

You need to get in touch with the Attorney that set you up in the Ch 128. He can always sue these creditors over this.

That Law Office is now out of business, and the trustee that was appointed is NO help at all.

Ouch that sucks. Have you tried speaking with another attorney about your options ? You may still have a case to sue these creditors.

Can you tell me the law office and the trustee that you had?

Hmm i talked to atty Jeff Murrell and he wanted to charge me $500 up front first plus the 31.50 to file... Does anyone know if you can do it yourself or do you have to go through an atty.

So does this affect your credit score at all and can u keep a card out of this to use in case of emergency like a plumbing problem or car breakdown?

You can always file yourself; this is known in legalese as filing "pro se" for your case.

Go to the Wisconsin statutes website and get the six pages of Chapter 128 in PDF format:
http://www.legis.state.wi.us/statutes/Stat0128.pdf

Then you can read through and follow up as required.

Quote:

You can always file yourself; this is known in legalese as filing "pro se" for your case.

Go to the Wisconsin statutes website and get the six pages of Chapter 128 in PDF format:
http://www.legis.state.wi.us/statutes/Stat0128.pdf

Then you can read through and follow up as required.

Quote:

My question is this what if the item has already been put in judgement and how long can it stay on record. I am willing to pay but have no income at this moment but will when I do but the amount keeps going up. I do live in wisconsin but no one told me about this program.

I filed chapter 128 last September, its been a year and a brutal $800.00 a month. 2 years to go, I am hoping for the best. I used Miller and Miller and felt they handled my case responsibly, and explained the program quite well. Chapter 128 does offer a silver lining to a dark credit experience, but it does come at a cost, the trustee can make 7% if the money is taken from your paycheck and 10% if you send a personal check.
The nice thing about Chapter 128 is you can choose what to include, that leaves the option open to have a back up CC for emergencies and to help offset the ding that your credit rating takes.
The original creditor does retain the option to sue or place a judgment on your delinquent accounts, even after you file. However if you pay according to the agreement, you will only pay what the agreed upon amount at the time of filing.
The creditors must not contact you regarding your debt after you file, but AMEX did sell my debt to a C/A and I ended up settling that debt for 30% of what was owed and reduced my payment in the process.
The trustee I have is unreachable, but that is OK in my case, I have no need to contact them.
All in all, it is hard as hell, which is a good thing as pain helps us to learn from our mistakes. I can not wait for that last payment to be made, it will be great to have no more debt other than my home.
Good luck with your credit problems, let them only be a temporary blip in your life.

I was wondering how many creditors did you include?

did they give you other options?

Would you happen to have a copy of the letter that the trustee sent to your creditors? (Of course with your personal info. blacked out)