Chapter 13 Bankruptcy: The Wage-Earner's Plan
If you have too many assets to qualify for a Chapter 7 bankruptcy, you may be eligible to file for bankruptcy under Chapter 13 of the bankruptcy code. Often referred to as the wager-earner's plan, Chapter 13 bankruptcy reorganizes your debt. It sets up an affordable plan for repaying your creditors over three to five years, depending on your income.
Is Chapter 13 bankruptcy an option for you? It costs nothing to find out. Contact the bankruptcy attorneys of Moffett Law Firm, P.L.L.C., in Tupelo and Amory, Mississippi. There is no risk and no obligation to learn if we can help.
The Advantages of Chapter 13 Bankruptcy
Unlike a loan workout or credit counseling, Chapter 13 bankruptcy will immediately:
- Stop creditor harassment
- Stop wage garnishment
- Stop foreclosure actions
In addition, Chapter 13 bankruptcy allows you to keep your home and other assets. They will not be liquidated to pay your creditors.
One Affordable Payment
In a Chapter 13 repayment plan, you pay yourself first. We subtract your monthly living expenses from your income. The money that is left over after your basic needs are met is paid to the bankruptcy trustee, who then distributes it among your creditors.
A Chapter 13 bankruptcy will not reduce your monthly mortgage payment. However, the arrearages — the overdue payments — can be paid back over 48 to 60 months. That is not an option in a Chapter 7 bankruptcy.
You don't have to be a wage earner to qualify for Chapter 13. Other sources of income, including pensions, Social Security payments, and investment income can also be considered. To learn if filing Chapter 13 makes sense for you, please contact a bankruptcy lawyer at Moffett Law Firm 662-341-7044.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
