What is a Chapter 128.21 proceeding? Under Wis. Stats. S 128.21, individuals may pay debts in full under a court approved plan of amortization over not more than 3 years. Such plans are akin to Chapter 13 plans under federal bankruptcy law. What kinds of debts can be amortized? Amortization plans are best suited to general unsecured debts, such as credit card accounts, utility bills, medical bills and signature loans. Secured claims may be amortized with the consent of the creditor. For instance, the City of Milwaukee has been amenable to accepting delinquent property taxes through such plans. Contact the City Attorney's office to make arrangements, even if the property has already been foreclosed. Income tax liabilities and federally guaranteed student loans are not suited for amortization. How is a case initiated? The case is initiated by filing a Petition, Affidavit of Debts and Order in the circuit court of the county where the debtor resides. What is the filing fee? The filing fee is $22, $25 in Milwaukee County. What happens after the papers are filed? The assigned court signs an Initial Order, appointing the trustee and ordering the debtor to make payments, usually by payroll deduction. In turn, the trustee holds a noticed meeting to consider the plan for confirmation. After the meeting the trustee submits a recommendation to the court for the plan to be either confirmed or dismissed. Plans that are feasible, funded and undisputed are recommended for confirmation and comprise the majority of cases. How are plans funded? Plans are funded by payroll deduction, unless the debtor's income is from some other source. Payments must commence upon entry of the Initial Order. May creditors object to a plan? Yes, creditors may object to a plan and request a hearing. The trustee will make every effort to resolve the matter in dispute. In rare instances, a hearing is necessary. Does the debtor have to appear in court? No, except in the rare instance when a creditor objects to the plan and the court requires testimony from the debtor. Does a debtor need an attorney? An attorney is recommended, but not required. Attorney fees usually are quite modest and can be paid through the plan as an administrative expense ahead of creditor claims. Do creditors need to file a claim? The initial papers filed by the debtor include an Affidavit of Debts. This paper lists the name and address of each creditor to be paid, the account number and the balance due as of the date of filing. Creditors are encouraged to file a claim if the amount scheduled on the Affidavit is not correct. Claims may be filed at or prior to the meeting. If a creditor does not file a claim, the balance shown on the Affidavit of Debts is presumed to be correct. When do payments to creditors begin? Payments to creditors begin after the Court confirms the plan. Confirmation usually occurs within three months after the case starts. Attorney fees are paid first, then creditor claims are paid pro-rata. Disbursements are made every three months, unless the debtor has good cause to request monthly disbursements.