Wisconsin Debt Relief

Wisconsin Credit Card Debt law allows for a 6-year time limit on filing suit over unpaid Credit Card Debt. This Statute of Limitations (SOL) begins when the consumer first fails to make a scheduled payment. In Wisconsin, the expiration date of the SOL is not affected by partial payments. Debtors have 20 days to file an answer to a summons or default judgment will be entered against them. For this reason, it is wise to send the answer by certified mail.

Judgment Enforcement

The enforcement period for a judgment in Wisconsin is 20 years and debts accrue judgment interest at an annual rate of 12%. A lien entered based on a judgment is enforceable for the same period. However, the lien will not apply to any valid homestead exemptions, which are allowed up to $40,000. Some personal property exemptions are also allowed. Wisconsin does not recognize a “confession of judgment,” or agreement to allow the creditor to automatically enforce collection of a debt.

Wage garnishments require a separate action and can remain in effect up to 13 weeks. Unless voluntarily extended, the creditor must file another action to extend the garnishment further. Only 20% of the debtor's net earnings after withholding taxes can be garnished. The state also provides several means of wage exemption to debtors.

Debt Settlement

If a debt has gone so far as to warrant a summons by the creditor, few options remain. Consumers should consider Debt Settlement, a way to pay the debt in interest-free installments. Otherwise, they must file bankruptcy or accept court orders for seizure of property and wages.