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Chapter 128 Bankruptcy Alternative
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Chapter 128 Bankruptcy Alternative

For Wisconsin residents struggling to make ends meet, Chapter 128 offers an efficient alternative to traditional bankruptcy proceedings. Relatively inexpensive and straightforward compared with bankruptcy, filing Chapter 128 can help you get back on your feet in no time.

By creating a 36-month repayment plan through a Chapter 128 proceeding, a person can efficiently consolidate their debt, stop future interest from accruing on what they owe, and get relief from creditor harassment. Additional advantages of Chapter 128 include the ability to utilize this relief in spite of high income or significant assets, as well as the opportunity to choose which debts to include in the payment plan.

At Nicolet Law Office, we understand many of the challenges that Wisconsin residents face, and we’re here to help. We can usually limit the cost of a Chapter 128 proceeding to a one-time, flat fee. Payment plans are available if necessary.

Chapter 128 vs. Chapter 13 Bankruptcy

A Chapter 128 proceeding is similar to a Chapter 13 bankruptcy in that both can protect you from creditors and allow you the opportunity to repay your debts. However, Chapter 128 is often cheaper, more flexible, and easier to file than a Chapter 13 bankruptcy. And while bankruptcy generally requires a debtor to submit to credit counseling, pass a means test, and itemize personal property and finances, a Chapter 128 proceeding does not.

Nevertheless, filing for Chapter 128 can’t reduce or eliminate debt the way that bankruptcy can. While people who file a Chapter 13 bankruptcy could pay less than what they owe, those who file Chapter 128 must repay all debt included in the plan.

If you’re in a tight spot and you don’t know which option is right for you, contact our experienced team of bankruptcy attorneys at Nicolet Law Office for a free consultation. We can help you determine the approach best suited to your situation.

How Does Chapter 128 Work?

If you’ve decided to file for Chapter 128, you will begin by completing a Chapter 128 petition and an affidavit listing your debts. An automatic stay will go into effect once you have paid a filing fee and these documents have been filed with your local circuit. Although a creditor may bring suit and acquire a judgment on the debt you owe throughout the Chapter 128 process, they cannot attempt to collect during the automatic stay.

After your documents have been filed, the court will appoint a neutral, third-party trustee to oversee the proceeding. The trustee will review your listed debts, analyze the amounts you owe, and help you create a three-year payment plan. The trustee will then contact your creditors. If a creditor objects to the appointed trustee, an alleged debt, or the overall plan, a court hearing may be required.

Once the court approves your plan, you’ll submit your contributions to the trustee’s office once a month and the trustee will disburse these payments to your creditors. If you fail to make a payment for more than 30 days, the trustee is required to report that failure to the court. At that point, the court will decide whether to dismiss the Chapter 128 proceeding or grant a 30-day extension.

After receiving and disbursing the full amount due, the trustee will report to the court and inform the judge that you have repaid your debts.


Contact Nicolet Law Office today to discuss your debt-relief options. If your income or assets are too high for a Chapter 13 bankruptcy, a Chapter 128 proceeding may be right for you.

We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.


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