Voluntary Amortization of Debts as described in
Wisconsin Statue 128.21

• Quick Link: Wisconsin Circuit Court Public Records (CCAP)

A Section 128.21, Voluntary Amortization of Indebtedness is NOT a bankruptcy. You will find similarities to a Chapter 13; however, these actions are typically filed as Civil Actions and are filed in the Circuit Court for the county in which the debtor lives. 

You can not report these actions to the Credit Bureau as being bankrupt.

Upon the filing of these actions, a Circuit Court Judge signs an Order that places a temporary stay of collections.  The stay will be made permanent at the time the Judge signs the Order approving the payment plan. If you are garnishing wages, you are ordered to STOP!

The debtor cannot answer your questions at this time.  All inquiries should be made to the Trustee and not the Debtor’s Attorney. Continued collection calls to the debtor after notification will not be tolerated.

The Meeting of Creditors Claim date is noted on the enclosed documents.  You must report any changes to your balance, account number, mailing address, etc. at this time.  A Claim form is included that can be mailed or faxed to our office. If you have questions or objections, you must also respond with them by the meeting of creditors if you wish your comments to be included in the report to the Judge. If you desire to be provided with a copy of the approved payment plan, you must submit your request to the Trustee and provide a self-addressed stamped envelope.

The payment plan that will be written will not exceed three years and will use the balances that are reported to the meeting of creditors.  The Circuit Court Judge will sign an Order stating that no interest or late fees shall be assessed to the balances used in the plan. When the plan has been successfully paid in full, a Dismissal Order will be signed.  The Dismissal Order will say that the State of Wisconsin considers the debts that were listed in the plan to be Paid In Full.

Payments are made through the Trustee’s office.  If for any reason the debtor cannot continue the plan, the Trustee will submit a report to the Judge asking for dismissal. Creditors will be notified that the stay has been lifted.  Upon receipt of such notice, creditors may resume collection activity and the assessment of charges. The Trustee will disburse funds around the 25th of each month. The first payment on the plan will not start until after the plan has been developed and approved by the Judge. Typically, funds are paid to the Trustee through wage assignments.  Any funds received by the Trustee after the 25th of each month will be held and distributed with the next month’s disbursal. Although the plans are normally setup to distribute funds to creditors on a monthly basis, occasionally the payments are too small to distribute.  In this case, the funds will then be disbursed every other month. You may also experience a skipped month if the funds are received after the 25th.  If at any time you have a question, you may call the Trustee’s office to confirm that the plan is current.

The Courts of the State of Wisconsin will not allow you to proceed with creditor actions for any debt listed in a Section 128.21. For this reason, creditors who are located outside of Wisconsin are also forced to comply with this action.

More information can be obtained regarding this action by reading the Wisconsin State Statute 128.21.