When it comes to filing bankruptcy, most people have usually heard of the two different kinds of personal bankruptcy known as Chapter 7 bankruptcy, which wipes the slate clean of most types of debts and Chapter 13 bankruptcy, which allows individuals to pay back creditors over a period of time. These two federal programs were designed with the intent to provide relief to individuals who have gotten behind on their bills and have more debt than they are able to handle.

A bankruptcy-type plan most people may not have heard of, however, is one known as Chapter 128. In actuality, Chapter 128 is not really a type of bankruptcy, but rather what is known as a bankruptcy alternative. This plan is actually specific to the state of Wisconsin and while you may think that it is a new type of program, it may surprise you to learn that it has actually been around since 1938.

Chapter 128 works by forcing creditors into a repayment plan that lasts 36 months. When a person participates in this plan, it stops the interest from accruing on outstanding dept and provides a way for families to get relief from debt collectors by stopping threats of court, liens and garnishments.

Perhaps one of the reasons that Chapter 128 can be more appealing than the federal bankruptcy plans is that unlike Chapter 7 and Chapter 13, which have some income restrictions, individuals can use this program to get relief even if they have a higher income or a significant amount of assets. Plus, as an added bonus, it is not all or nothing. Those who use this method for debt relief actually get to decide which debts they want to include in the repayment plan and which they do not.

Individuals who are facing bankruptcy may find useful information on the website that could potentially help them as they work to receive a fresh start.