Wisconsin Chapter 128 Pro Se - Any Experiences?

[deedee642]

I live in Wisconsin and am considering filing a Chapter 128 pro se. Has anyone done this and could you share your experience?
Thanks,
Dee

[justbroke]

It's not even a bankruptcy, so why are you doing it? You won't get much here, on BKForum, as this is a bankruptcy forum. I don't, personally, understand why anyone would do Wisc. 128 when you'd have to pay back 100% to the creditors over 3 years.

Of course, you should consult some attorneys to see the better option for your personal situation.

[deedee642]

I had paid an attorney $800.00 to file a Chapter 13 in Wisconsin. He implied that I would be "paying pennies on the dollar". When I went in to sign the paperwork The Chapter 13 was at 100% payback over a 6 year period with a lot of money being paid to the trustee and also additional monies to the attorney. I would have the negative effect on my credit due to a bankruptcy. Under a Chapter 12 in Wisconsin the fee is approximately $30.00. The trustee would receive 7% over a 3 year period. I pick and chose which creditors I want to include. Though it is not bankruptcy, it still provides virtually the same protections from creditor collections actions as does a federal bankruptcy. In short, this law provides the legal framework for establishing a personal receivership wherein someone may amortize certain debts through a monthly payment “plan” that can last for up to three years (the plans can be formulated to run for shorter periods of time, if feasible for the debtor). So, though it is also not debt consolidation as we know and understand debt consolidation to be, it results in a debtor paying one monthly payment towards one or more debts, as in traditional debt consolidation. If a debtor sticks to it, a successful 128.21 plan will also result in his or her listed creditors being paid in full, with the exception of accrued interest and penalties. The statute empowers a circuit court to appoint a trustee to administer the debtor’s “estate” and to issue a protective order forcing most types of creditors to accept payment of debts owed to them little by little this way, despite the fact that they may have a contract with the debtor whose terms would normally dictate otherwise (the statute trumps private contracts between parties amenable to Wisconsin state-court jurisdiction). By its operation, the law stops interest from accruing on credit cards and similar debts. Upon the filing of a Chapter-128 petition, the statute provides that any creditors named by the debtor who are amenable. A bankruptcy stays on there for ten years, but these go away after seven years. During a §128.21 receivership, these are showing up on debtors’ credit reports classified with an “I-7” or “R-7” rating, the mid-range score indicating that the debt is being repaid through a debt-consolidation or similar plan. So since I am looking at 100% payback - I wanted to go the route of the Ch. 128 which is unique to the State of Wisconsin.
DeeDee

[despritfreya]

Here is an interesting article on Wisconsin's "Chapter 128". The BIG difference I see is that this is a 100% payment to unsecured creditors over 3 years as opposed to (if you are forced into it) a 5 year Chapter 13 Plan. But it does not sound bad at all.

http://www.wisbar.org/AM/Template.cfm?Section=Home&CONTENTID=73094&TEMPLATE=/CM/ContentDisplay.cfm

Des.

[deedee642]

Des-
Thanks so much for the link. If you read my post - I was facing 100% payback under a Ch. 13 which included more than $8,000 in adminstrative fees. I just wish I had looked into the CH. 128 prior to giving an attorny $800.00 Also, in the 13 I wasn't including my home, so it was all unsecured creditors. I looked at the paperwork and it is only about 6 pages long. I also have most of my paperwork from my previous attorney that I terminated working with, so I think that might help me when filling out the paperwork.
Dee

[despritfreya]

I just wish I had looked into the CH. 128 prior to giving an attorny $800.00

This bothers me. From my quick reading of that article, which is from the Wisconsin State Bar, it sounds like a debtor attny has a duty to at least discuss this program. I clearly do not practice in Wisconsin but I can tell you that if such a provision was available in my State I would discuss the option with the potential client. All avenues need to be explored before a client can make an "informed, intelligent decision".

Des.

[deedee642]

Des,
After doing a lot of research (that I should have done prior to retaining that attorney) I got the feeling that he stood to make a lot more money if I went with the Chapter 13. In our initial meeting he kept saying things like, "you can potentially settle for pennies on the dollar" and "I think you are underestimating how much disposable income you will have." So I paid the $800 and proceeded. Then on the day I was to sign the paperwork I was shocked at the whole plan and 100% payback amount. There were also items he had left off (home owners fees, union dues, etc). He never once suggested a Ch. 128. I can actually pay less monthly with a Ch. 128 and have it paid back sooner. It would be a struggle, but I want to try. How do you feel about me trying to do it pro-se? The filing fee is about $30.00 and the form looks to be about 6 pages long. I have a list of all my creditors from the Ch. 13 paperwork.
Dee

[despritfreya]

How do you feel about me trying to do it pro-se? The filing fee is about $30.00 and the form looks to be about 6 pages long. I have a list of all my creditors from the Ch. 13 paperwork.

I cannot answer this question since I know nothing about the program. Maybe call the Clerk of the Court to see if the Court has any pamphlets on the ins-and-outs of the procedure. Be wary of the Internet sites. Most of them are from attorneys trying to solicit business. You need some independent information. I think the main issue is whether or not your creditors MUST participate in the program or is it voluntary (the article does not tell me for sure). Remember, bk is mandatory as it relates to creditors.

Des

[deedee642]

Des-
I'll do that. I know what you mean about the internet sites. Whenever I do an internet search on this subject I find myself wading through all of the "attorney blogs", etc.

[despritfreya]

Here is a link to the actual Statute. I am now going to spend a few minutes reviewing this. I find it fascinating (and rather refreshing) that a State would have an alternative to bk.

Yes, I have no life. . .

http://legis.wisconsin.gov/statutes/Stat0128.pdf

Des.