Chapter 128
Kryshak Law Office, LLC
262.764.2022
6127 Green Bay Rd.
Suite 101
Kenosha, WI 53142
Tel: 262.764.2022
Fax: 262.764.2043
Voluntary Amortization of Debts
What is a Chapter 128?

Wis. Stat. §128.21 allows one to set up a payment plan to repay certain debts over the
course of up to three years.  A debtor is allowed to choose which qualified debts to
include in the payment plan and is allowed to exclude other debts.  Chapter 128
proceedings provide the debtor with many of the same protections as filing bankruptcy.  
In addition, the process is much easier and less expensive than filing bankruptcy.  Thus,
Chapter 128 proceedings are a unique and valuable alternative to bankruptcy available to
Wisconsin residents.

Do I qualify to file a Chapter 128?

As stated above, the process for filing under Chapter 128 is much less complex than
filing for bankruptcy.  There are basically two requirements for a debtor to qualify to
file under Chapter 128.  First, the debtor must be an adult resident of the state of
Wisconsin.  Second, the debtor must have his/her principal source of income consist of
wages or salary.  

What debts can I include in a Chapter 128?

Unlike the Bankruptcy Code, Chapter 128 proceedings do not require the debtor to
include all debts.  Instead, debtor’s may pick and choose which debts to include and
which debts to keep out of the Chapter 128.  Nearly all types of unsecured debts can be
included in a Chapter 128.  Common types of unsecured debts include debts from credit
cards, utility bills, medical bills, payday loans, and deficiencies.  Secured debt generally
cannot be included in a Chapter 128.  Some common types of secured debt include
mortgages and car loans.  The law does give a secured creditor the option to be included
and thus it is up to the secured creditor as to whether they want to be included in the
Chapter 128.

What types of protection does filing under Chapter 128 provide?

Filing under Chapter 128 provides many of the same protections as filing under the
Bankruptcy Code.  Once filed, a Chapter 128 prohibits creditors from executing any
attachments on the debtor’s property.  In addition, a Chapter 128 prohibits creditors
from garnishing wages or from attempting to collect on a debt that is included in the
Chapter 128 petition.  A Chapter 128 also stops future interest from accruing on any
debts that are included in the petition.  

There are a few ways in which a Chapter 128 differs from bankruptcy.  Unlike
bankruptcy, all debts included in the Chapter 128 petition must be repaid.  Thus, a
debtor cannot get a discharge of any debt from filing under Chapter 128.  Another
important difference is that creditors are still able to get a judgment against the debtor
during a Chapter 128.  However, even if the creditor does get a judgment for the debt,
the creditor cannot collect on the judgment pending the Chapter 128 proceedings.

What are the fees for filing a Chapter 128?

Fees for filing a Chapter 128 are generally much less than fees for filing bankruptcy.  
The reason is the relative simplicity of filing under Chapter 128 as compared to filing
bankruptcy.  Kryshak Law Office offers low fixed rates and flexible payment plans.  
Please contact Kryshak Law Office to set up your free initial consultation to determine
if filing under Chapter 128 is an option for your specific financial situation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.  This web
site is designed for general information only.  The information contained on this site should not be viewed as
formal legal advice nor the formation of a lawyer/client relationship.

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