What Is Chapter 128?
Wisconsin's Chapter 128 is a state-level debt amortization statute that provides an alternative to federal bankruptcy — allowing debtors to repay their debts over time under court supervision.
Court-Supervised
A trustee is appointed by the court to administer the plan, ensuring fair treatment for all parties.
Up to 36 Months
Debtors repay their obligations over a structured plan lasting up to 36 months.
State Alternative
Chapter 128 is a Wisconsin state-law alternative to federal bankruptcy proceedings.
How the Process Works
Under Wisconsin Statutes Chapter 128, a debtor files a petition with the circuit court. The court appoints a trustee — such as Chapter 128 Trustee Services, LLC — to administer the case. The trustee collects payments from the debtor and distributes them to creditors according to the confirmed plan.
Who Can Benefit
- Wisconsin residents with unsecured debts seeking structured repayment
- Individuals who want to avoid federal bankruptcy proceedings
- Debtors with regular income who can commit to a 36-month plan
- Creditors seeking an orderly, court-supervised distribution process