Bankruptcy should be the last resort for people who are faced with more debt than they can repay. But lingered somewhere between people who can not pay, and those who can, it's a different type of debtor: debtor who can pay if he or she can adjust the payment terms.
debtors often work directly and successfully with creditors to negotiate new terms of payment, but for those who can not agree on feasible terms, Wisconsin is another option. This procedure of debt amortization, which is usually called the head of the 128, and allows debtors to amortize the debt problem with the help of the proposed repayment plan. Section 128 debtors can choose which creditors they would like to include in the request, continuing to pay the creditors, who remained outside the petition. In addition, Chapter 128 stops the accrual of interest and penalties on those accounts and prohibits the creditor to continue to collect the debt, so that people could repay the debt in full & # 39; volume.
To apply, you must be an adult resident of Wisconsin and earnings. It is not clear, it is considered income from social security, detention or unemployment as wages, but the judges usually want to work with debtors in order to have success in the payment of their debts. Traditionally judges tend to confirm the plans as long as there is a stream of income. Such a trend may change, however, narrowing the types of income that make up earnings.
Following the filing of 128 creditors included in the petition, it shall enter into force automatically finding, which does not accrue interest, and lenders who are part of the request, take no action for the payments. According to Section 128, the debt must be repaid in full & # 39; the amount for 36 months. If the applicant fails to pay fees 128 application is rejected, and the interest and penalties again begin to accrue. In addition, the interest that would have accrued in the course of the proceedings, are charged as if the consideration was never started.
Once a payment plan is approved, the appointed trustee. Guardian informs creditors who will have the opportunity to object to the amount borrowed or the plan itself. Guardian will continue to serve as a mediator during the redemption process. Then the debtors pay the debt through a trustee, by direct payments or voluntary assignment of wages. The trustee is compensated by anywhere from 7 percent of the debt for the purpose of salary to 10 percent of direct payments.
128 procedures gave multiple debts debtors.
- Price – payment for the supply of 128 – about 30 dollars, and payment for bankruptcy – from $ 300 to $ 400. In addition, fees for lawyers for bankruptcy, usually two to three times more expensive than the fee for proceedings in Section 128.
- Simplicity – the debtor in bankruptcy must file a petition challenging and graphics, including all of its assets, creditors and finance, as well as the calculation of the release. They must also submit to the tax authorities and to confirm the guaranteed debt. Section 128 generally ranges from one to three pages of the application, where the debtor lists only the debts that he wants to be included in the repayment plan. Thus, if you have five credit cards, but only one problem, you need a list of only the one where you are looking for relief from interest and penalties.
- Stigma – For people who are concerned about the stigma of filing bankruptcy or morals, 128 is considered a "debt amortization" and gives way to improve their debts.
Jobs Section 128 – this is a good option for people who are struggling to repay debt, enabling them to fulfill their obligations. But there are cases where bankruptcy may indeed be the only option. If you are struggling with debt payments, consult with an experienced bankruptcy attorney. Many offer a free initial consultation to help you determine the steps that are best suited to you.