2017 - 2018 LEGISLATURE
March 7, 2018 - Introduced by Senator Hansen, cosponsored by Representatives
Stuck and Sinicki. Referred to Committee on Insurance, Financial Services,
Constitution and Federalism.
1An Act to repeal
128.001 and 128.02, 128.03, 128.05, 128.06, 128.07, 128.08, 2
128.09, 128.10, 128.11, 128.12, 128.13, 128.14, 128.15, 128.16, 128.17, 128.18, 3
128.19, 128.20 and 128.25; and to amend
108.02 (4m) (f), chapter 128 (title), 4
128.01 and 972.085 of the statutes;
relating to: creditors' actions.
Analysis by the Legislative Reference Bureau
This bill eliminates certain legal proceedings governing the distribution of a
debtor's assets to creditors.
Under current law, a debtor may make a voluntary assignment for the benefit
of creditors and, if accepted, the assignee must file this assignment with the court
where the debtor lives or has its principal place of business. This assignment and
filing initiates a legal proceeding through which the assignee takes control of the
debtor's property and is responsible for distributing the debtor's assets to creditors.
Also under current law, a creditor may petition the court to sequestrate a debtor's
property and appoint a receiver if the execution of the creditor's judgment against
the debtor is returned unsatisfied or if a debtor corporation is insolvent or has been
dissolved. If the court appoints a receiver or an assignment is filed, the receiver or
assignee is vested with title to the debtor's property and the debtor must file with the
court an inventory of the debtor's assets and a list of the debtor's creditors along with
the amount due each. The receiver or assignee must give notice of the proceeding to
the debtor's creditors and these creditors have three months to file their claims. At
the expiration of this three-month period, the receiver or assignee must file certain
information with the court, including a list of creditors and claims filed. The receiver
or assignee or a creditor may object to any claim and obtain a court hearing as to the
objection. As part of the proceeding, the court orders distribution of the debtor's
assets in a specified order of priority and, during the proceeding, the court may also
enjoin other proceedings by creditors against the debtor. Within six months after the
expiration of the three-month period for filing claims, a receiver or assignee must
file with the court a report containing a full and itemized statement of certain
information relating to the receivership or assignment, including the property
received by the receiver or assignee and the manner in which the receiver or assignee
dealt with the property; the names of the debtor's creditors; the amount of money
realized by the receiver or assignee; and the receiver's or assignee's receipts and
disbursements, including amounts paid to the debtor's creditors. After filing this
report and giving notice to the creditors, the receiver or assignee may apply to the
court for a final settlement of accounts, which occurs by order of the court after an
opportunity for hearing.
Current law also includes additional provisions relating to a secured creditor's
claims against a debtor's assets in a liquidation proceeding and disclosure of the
nature of the creditor's security interest.
This bill repeals all of these provisions.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
108.02 (4m) (f) of the statutes is amended to read:
(f) All wages that an employer was legally obligated to pay in an 3
employee's base period but failed to pay, or was prohibited from paying as a result 4
of an insolvency proceeding under ch. 128 or as a result of
a bankruptcy proceeding 5
under 11 USC 101
Chapter 128 (title) of the statutes is amended to read:
9for amortization of debts
128.001 of the statutes is repealed.
128.01 of the statutes is amended to read:
The circuit courts shall have supervision of proceedings 2
under this chapter and may make all necessary orders and judgments therefor; and
3all assignments for the benefit of creditors shall be subject to this chapter
128.02, 128.03, 128.05, 128.06, 128.07, 128.08, 128.09, 128.10, 5
128.11, 128.12, 128.13, 128.14, 128.15, 128.16, 128.17, 128.18, 128.19, 128.20 and 6
128.25 of the statutes are repealed.
972.085 of the statutes is amended to read:
8972.085 Immunity; use standard.
Immunity from criminal or forfeiture 9
prosecution under ss. 13.35, 17.16 (7), 77.61 (12), 93.17, 111.07 (2) (b), 128.16,
139.20, 139.39 (5), 195.048, 196.48, 551.602 (5), 553.55 (3), 601.62 (5), 767.87 (4), 11
885.15, 885.24, 885.25 (2), 891.39 (2), 968.26, 972.08 (1) and 979.07 (1) and ch. 769, 12
provides immunity only from the use of the compelled testimony or evidence in 13
subsequent criminal or forfeiture proceedings, as well as immunity from the use of 14
evidence derived from that compelled testimony or evidence.
(1) Any proceeding commenced as provided in sections 128.02, 128.03, 128.05, 17
128.06, 128.07, 128.08, 128.09, 128.10, 128.11, 128.12, 128.13, 128.14, 128.15, 18
128.16, 128.17, 128.18, 128.19, 128.20, and 128.25, 2015 stats., prior to the effective 19
date of this subsection may be continued until completion of the proceeding and may 20
be appealed as provided in section 128.20 (2), 2015 stats.