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Q.) Will I have to go to Court when I file a Chapter 128.21?
A.) No. These actions are filed with the County Circuit Court and do not normally require any type of Court appearance by you or your attorney.
Q.) How long will it take for my creditors to stop calling?
A.) Each creditor processes legal documents at a different pace. Although some creditors will have their files corrected immediately, it may take as long as 60-90 days from the date you file before all of the creditors have their files corrected.
Q.) How does filing a Chapter 128.21 affect my ability to obtain new credit?
A.) You will need to explain, in advance, to the credit grantor, that you have filed a Chapter 128.21. Each credit grantor is different. Where one, may understand that you are paying off your debt, another, may see the filing of a Chapter 128.21 as a negative. Your credit scores may be negatively affected; therefore, we can not and do not make any guarantees in this area.
Q.) Will I still receive statements?
A.) It is possible that some creditors will continue to send you statements so that you can see that payments are being posted. Other creditors will stop all communication with you, including the stopping of monthly statements.
Q.) I have judgments or garnishments, how can Chapter 128.21 help me?
A.) You can include debts that have judgments and garnishments filed against them. The Chapter 128.21 has a provision to protect you against future garnishment actions. If your debt is listed in the Chapter 128.21 action and you are presently being garnished, your creditor will have to stop. There are special provisions given to creditors who have a secured debt. If you have a situation where a creditor has threatened or may have already taken an action to repossess the collateral that you pledged, legal advice may be appropriate.
Q.) If I file a Chapter 128.21 does that prevent me from filing for a form of Bankruptcy in the future?
A.) No. Since a Chapter 128.21 is not a form of bankruptcy, there is nothing that prevents you from filing for bankruptcy in the future.
Q.) Is Chapter 128.21 bankruptcy?
A.) No, although it has similarities to a Chapter 13 bankruptcy, these actions are filed in the Circuit Court as Civil actions. Creditors can not report your account as bankrupt.
Q.) Can I file joint with my partner if we are not legally married?
A.) No, each of you would have to file your own action if you are not legally married. We can determine the affordability of the action by using information from both of you; however, you must be legally married to file a joint action.
Q.) Does this action appear in the newspaper?
A.) Any newspaper that prints civil actions will also include Chapter 128.21 actions.
Q.) What debts can go into a Chapter 128.21?
A.) The Chapter 128.21 is designed for unsecured debts. We are very careful when considering including a debt that has collateral pledged. Debts such as medical, credit card, collections, some past due utility bills, and payday loans are good candidates for the Chapter 128.21. Federal debt, including student loans and Federal tax liabilities, are not good candidates for the Chapter 128.21. Please be prepared to share all of your debt when you come for your consultation. We will assist you in determining if a debt is a good candidate for your Chapter 128.21 action.
Q.) Can I pay off a Chapter 128.21 action early?
A.) Yes you can, however, you may not experience large savings. You do not pay interest on the debts listed in a Chapter 128.21 action, because you are already paying a trustee fee. To successfully pay off the Chapter 128.21 action, all of the funds need to pass through the Trustee’s office. You will be paying the entire trustee fee; however, you will receive a rebate for unused postage. You will need to determine if the savings that you have received from not paying interest is sufficient enough to justify paying off your 128.21 action early. The major advantage that you have by paying off early is that your debts begin to show up as paid in full and your financial life can begin to move forward.
Q.) How do I know if I qualify for a Chapter 128.21?
A.) You must be a Wisconsin Resident. You must have an income. You must be able to afford a 3-year repayment plan.
Q.) What if I have a payroll deduction for my 128.21 plan but lose my job or change jobs, what do I do?
A.) Contact our office immediately. If there is a job change, we will forward the wage assignment information to the new employer. If you have lost your job, it is important to know that you are still responsible for payments on your 128.21 action. Although we will try to work with you, there are limits on how far past due your plan can be, before it must be dismissed. Communication is essential; however, even great communication will not change the fact that your plan will have to be brought current. If you think this seems unfair, just remember that if you get a bonus, tax return, or win the lottery, the Court will not force you to pay extra on your plan just because you have more money available. You have the protection of the Court but you also have the accountability to the Court.
Q.) What if I forget a creditor, can it be added in later?
A.) The easy answer is to say no; however, there are a few exceptions. Amending 128.21 actions will cost you more money. It is suggested that you dig deep and make sure that all of your creditors are considered when you file the 128.21 action. Do not assume that you can make additions once your action has been filed. If this situation comes up you should discuss it with the Trustee. If an exception can be made, your Attorney and the Trustee will need to amend documents with the Court
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