Dealing with ever-increasing debt can feel like a never-ending cycle that you will never get out of. The government recognizes that it can be very difficult for debtors to get out of the situation they find themselves in, especially because of interest rates on unpaid credit cards and loans.
This is why the government makes it possible for people to benefit from special laws and plans that help them to get out of debt. One of these is called the wage earner's plan, more formally known as Chapter 13 bankruptcy. The wage earner's plan can be ideal for a person with a stable income to repay his or her debts over time under more lenient conditions.
How can the wage earner's plan help me?
One of the biggest advantages of the wage earner's plan is that it offers debtors the opportunity to repay they debts through the bankruptcy process without having to lose their home. This can be particularly beneficial for families who want to avoid the additional stress of uprooting. It can also allows you to reschedule secured debts over the length of the plan, potentially lowering repayments.
Am I eligible for the wage earner's plan?
If you have unsecured debts that are less than $394,725 and secured debts that are less than $1,184,200, you will be eligible for Chapter 13 bankruptcy. You cannot file for Chapter 13 bankruptcy if you have had another bankruptcy petition refused in the last 180 days because of a failure to show up in court.
If you are considering filing for Chapter 13 bankruptcy, it is important to take the time to consider its suitability for you.