What exactly is Area 128?
This unique Wisconsin statue enables Wisconsin wage earners to combine many kinds of credit card debt. Through area 128 you are able to repay creditors – including charge cards – without interest, without late costs, and without bankruptcy. Part 128 requires one to spend these responsibilities within a time period of 3 years.
The next types of debts are generally consolidated through 128:
- Charge cards
- Unsecured unsecured loans
- NSF checks
- Pay day loans
- Healthcare bills
In the event that you come with a creditor in a 128, the total amount your debt will freeze and won’t increase as a result of accruing interest or belated charges.
- Am I going to spend interest from the financial obligation we consolidate through part 128? – No. Whenever you file part 128, balance will freeze. Area 128 enables you to spend your debt(s) more than a 36-month duration without interest and without belated costs accruing.
- Is 128 an alternate to bankruptcy? – definitely. 128 is certainly not a type of bankruptcy – it really is an alternate to bankruptcy. Bankruptcy is a right the government that is federal you, but Section 128 is the right you’ve got under Wisconsin state legislation. It’s not a bankruptcy and won’t be reported as a result to your credit agencies.
- Will 128 stop wage utility or garnishment disconnection? – all depends. 128 is extremely good at closing wage garnishments, however it might perhaps maybe not stop energy disconnections. If you’re wanting to stop a software application shut-off, bankruptcy may be an improved selection for you.