When someone is in over their head in bills and crushing debt, it may sometimes feel like there is no way out. Bankruptcy is one possible way out. Bankruptcy does offer a client a clean slate after it’s taken care of. Although the bankruptcy can remain on the credit record for a long time, the fresh start can free the client to be able to spend their income on rent and other living expenses instead. There are two kinds of bankruptcy options for individual debtors. One is a Chapter 7, which is a complete liquidation of all debts that can be discharged by law. The other option is a Chapter 13 bankruptcy, which is administered by the court and the debtor works out a payment plan with their attorney to pay back a percentage of their debt.
In Wisconsin, debtors can also choose to file for a Chapter 128, which is a Debt Consolidation Milwaukee WI solution for those who don’t want to file for bankruptcy. Not all debtors are eligible, so your attorney will consider your individual situation with your debts, monthly expenses, and income, and will help you decide which option is best for you.
A Chapter 128 Debt Amortization allows debtors to pay off all their unsecured debt like credit cards and medical bills through Debt Consolidation Milwaukee WI. Under Chapter 128, just like under Chapter 7 and Chapter 13 bankruptcy, debtors have protection against creditor harassment. They also can’t get their wages garnished when they’re under a Chapter 128 repayment plan, and they can prevent having their utilities stopped. The debtor works with a bankruptcy attorney who is familiar with Chapter 128 and makes one reduced payment each month that gets distributed among the various creditors.
There are unscrupulous debt consolidation companies out there who will use similar wording to that of an attorney’s office to make it sound like they are a law office, but they are not. They tend to take very high fees each month out of the debtor’s payment, which reduces the amount that gets paid to the creditors. Debtors should consult with a Wisconsin bankruptcy attorney before signing on with one of these companies so they understand the law and their options.
