128.21 Voluntary proceedings by wage earners for amortization of debts.

764 words·~3 min read·/wi/chapter-128/128-21-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Any person whose principal source of income consists of wages or salary may file a verified petition with the circuit court in the county of his or her residence stating that the person is unable to meet current debts as they mature, but is able to make regular future payments on account sufficient to amortize the debts over a period of not more than 3 years, and that he or she desires the aid of the court to effectuate the amortization. The petition shall also set forth the names and addresses of any creditors who have levied any executions, attachments or garnishments, and of any garnishees, and the court shall forthwith, by order, require that proceedings for the enforcement of the executions, attachments or garnishments be stayed during the pendency of proceedings under this section. The petition shall be accompanied by the fee prescribed in s. 814.62

(2).

(2)After the filing of a petition under this section and until the dismissal of the proceedings, no execution, attachment or garnishment may be levied or enforced by any creditor seeking the collection of any claim which arose prior to the proceedings, unless such claim is not included by the debtor in the claims to be amortized pursuant to sub.

(3r). With respect to the claims to be amortized the time between the filing of the petition and the dismissal of the proceedings shall not be counted as a part of the period of any statute of limitation.

(3)On the filing of the petition the court shall appoint a disinterested trustee. The trustee shall forthwith meet with the debtor; make a list of the debtor’s creditors, with their addresses and the amounts owing to each, which the debtor shall sign and verify; and send notices to each of the amount claimed to be due that creditor, and of a meeting to be held in the trustee’s office not less than 5 nor more than 10 days thereafter, for the purpose of considering an amortization plan and of determining the claims to be covered by the plan. Upon conclusion of the meeting the trustee shall do either of the following:

(a)Report to the court that no equitable plan of amortization is feasible or needed in which case the court may forthwith dismiss the proceedings.

(b)Recommend to the court a plan of amortization calculated by weekly or monthly payments, to discharge in full the claims of the creditors listed in the plan within a period of not exceeding 3 years.

(3g)The trustee shall attach to a plan recommended under sub.

(b)the written consents and objections, if any, of the creditors present or represented at the meeting, and an analysis, with the trustee’s recommendations regarding the disposition, of any claim whose amount is in dispute or appears to be uncertain.

(3r)The court shall forthwith enter an order approving the plan recommended under sub.

(b)and determining, for the purposes of the plan, the amounts of the claims, unless in any such written objection included under sub.

(3g)a creditor asks for a hearing respecting the plan or the amount of the creditor’s claim, or the person to be trustee, in which case the court shall set a date for a hearing as soon as may be, on notice of the debtor, the trustee and creditors. At the hearing the court shall enter an order either approving the plan, if satisfied that it is feasible and equitable, and determining, for the purposes of the plan, the amounts of the claims, or dismissing the proceedings, or modifying and approving the plan as the court considers just; and the court may appoint a different trustee if the one appointed is objected to.

(4)If the plan recommended under sub.

(b)or a modification of the plan is approved under sub.

(3r), the debtor shall make the periodic payments provided for in the plan to the trustee, and may make additional payments from time to time to the trustee, and the trustee shall distribute the payments proportionally among the creditors listed in the plan, less all of the following:

(a)A deduction for the trustee’s compensation to be fixed by the court at the time of approving the plan in an amount not exceeding 7 percent of each distribution, if the payments are made through an assignment to the trustee of a portion of the debtor’s wages or salary, and not exceeding 10 percent if no such assignment is made.