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If you wish to have an attorney contact you, please fill out the contact form. We serve all Southeastern Wisconsin, including the following counties:

  • Waukesha
  • Milwaukee
  • Racine
  • Kenosha
  • Dodge
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  • Jefferson
  • Walworth
  • And more!

Wisconsin Chapter 128: Amortization of Debts

Many calls we get here at McAvoy & Murphy center on debt-relief options that exist outside of Bankruptcy. Some people just wish to cut down on astronomical interest rates that result from taking out payday loans or the interest from a big credit card amount.  Other people want to repay debts on their own terms and do not want creditors garnishing wages or bank accounts.  Another type has already filed bankruptcy and has encountered more financial trouble.  With the timelines of Bankruptcy code preventing discharge, the debtor is simply looking for any option that will help them get their life back on track.

What is Wisconsin Chapter 128?

Wisconsin affords its residents a state-based statutory debt relief option that will help you pay off your debts interest-free and give needed protection against garnishments.  Wisconsin Statutes Section 128.21, commonly known as Chapter 128, allows any Wisconsin resident to petition the court to allow the resident to get help with their financial situation.


Wisconsin residents who file Ch. 128 can benefit from the following:


  • Eliminates interest rates for debts owed as of date of filing.
  • Prevents any wage garnishments, wage assignments, execution, or attachments by creditors who are owed a debt or that have a court judgment against you.
  • A 3-year repayment period to repay the amount of debt in equal monthly payments.  These payments can be made by payroll deduction or directly to the trustee administering your Chapter 128.
  • Protection from creditors and collection agencies and their constant calls and attempts to get you to pay.
  • A CHAPTER 128 IS NOT A BANKRUPTCY AND NO BANKRUPTCY WILL BE ON YOUR CREDIT REPORT!  In many instances, your credit rating does not take a major hit, and you will remain in good graces with future credit applications.
  • For a Chapter 128, you get flexibility in picking and choosing which debts to include in your case. This is much different from bankruptcy, where by law you must include any and all debts you owe.  Moreover, the forms are simpler and require disclosure of less intrusive information than bankruptcy forms.
  • No income limits, no assets at risk of being taken, no family size to worry about!  Chapter 128 gives you freedom to decide how to handle your debt struggles and regain your financial freedom!


Other differences from Bankruptcy:

Unlike in Bankruptcy, a WI Chapter 128 does not allow debtors to receive a discharge of their debts. Meaning, if you are paying a debt in a 128 plan, the debt must be completely repaid by the end of the 3 year period. Also, secured debts cannot be placed into a WI Chapter 128. So those pesky auto and home loans cannot be addressed by this sort of debt relief. However, the attorney fees are on average half the price of the attorney fees for a Chapter 7 Bankruptcy filing, and close to 6 times cheaper than a Chapter 13 Bankruptcy. The trustee does collect a fee for helping to disburse your funds to creditors and make sure they follow Wisconsin law, but that fee is only either 7% or 10% (depending on whether you are paying via payroll deduction or directly every month).

I’m Interested in a Chapter 128- What makes me a good candidate?
 A good candidate for a WI Chapter 128 would have the following characteristics:


  • Wage Earner (this typically means gainful employment, but also includes individuals on SSI, self-employed, pension, and other income streams).
  • Wisconsin Resident (If you are moving or leaving the state, call us today to take advantage of this debt relief option. If you are planning a move to Wisconsin, we can plan to get the filing ready on Day 1 of your residency.)
  • Has debts that can be repaid over three years (We see different amounts and total numbers of debt put into these plans. If you are unsure of this requirement, call us at 844-ZAP-DEBT today for to determine your eligibility.)


 What Information will McAvoy & Murphy's Waukesha Lawyers Need to Process my Chapter 128?
It would be helpful if you had the following information ready at your free consultation:


  • List of debts (so we can decide which debts should be included in the plan).
  • Account numbers for each debt you plan to include.
  • Your Address.
  • Your Employer’s Address.
  • And that’s it, we can begin putting you on the road to interest rate reduction and garnishment freedom!


If you have read the above information on Wisconsin Chapter 128 and would like to know more about this exclusive-to-Wisconsin debt relief tool, please feel free to call us at 262-261-0834 or toll-free at 844-ZAP-DEBT today or fill out the contact form located below. At McAvoy & Murphy, our attorneys do whatever it takes to make sure our clients’ estates, properties, and livelihoods are protected under the law. Don’t let crushing interest rates, past-due payday loans, and capitalizing balances ruin your American Dream. Our attorneys look forward to serving you and helping you through this delicate and emotional time, and making sure your financial problems are put behind you as fast as possible!.