Carrying too much debt can put a lot of strain on a family. For one reason or another, many people struggle to pay their bills when they really can’t afford the principle plus the interest they are being charged. It could be they would rather sacrifice their own diet and lifestyle to avoid having a bankruptcy on their record for 10 years. Another reason some people don’t file for debt relief is due to their personal pride. Fortunately, the state of Wisconsin offers an option that can help people reduce their debt without ruining their credit for years to come.
With the help of an experienced bankruptcy lawyer in Milwaukee WI, an individual or couple who would be able to manage their debts if it weren’t for the high interest rates on their unsecured loans and credit cards may be to file a Chapter 128. This alternative to bankruptcy may not have any lasting effects on a person’s credit rating but can make their debts much easier to pay.
The most significant difference between Chapter 128 and bankruptcy is that Chapter 128 is a state debt relief program. The program is available to all state residents and, unlike bankruptcy, a filer’s personal assets are not in jeopardy. Chapter 128 does not eliminate debt like bankruptcy. Those who want to have their debts discharged at the end of the repayment period will have to consider other alternatives. A Bankruptcy Lawyer in Milwaukee WI may advise a client who is interested in discharging their debts to use Chapter 7 or Chapter 13 bankruptcy protection.
Chapter 128 is less expensive than federal options. Filers don’t have to make a court appearance, and they don’t have to painstakingly list all of their assets for the court trustee to review. Creditors cannot charge interest to Wisconsin residents after they file a Chapter 128 so the overall debt often drops significantly right away. Anyone who doesn’t qualify for bankruptcy or who don’t want to deal with all the paperwork and court appearances involved in bankruptcy can contact us to learn more about the other option available that has helped countless Wisconsin families get out of debt comfortably.