HOW TO WIPE OUT DEBT ?

Wipe Out Debts With Wage Earner Plan

In 1938 a federal law was passed known as the Wage Earner Plan. It is administered by the same branch of our courts that handle bankruptcy. You must be a wage-earner to use the law - that is the primary requirement. The Wage Earner Plan does not in itself 'wipe out' debts, but a little-known proviso of your filing requires that your creditors must appear to verify your indebtedness to them. Statistics indicate that 40% fail to appear, in which case, those debts are indeed 'wiped out'. In some cases 100% of the creditors fail to appear, which enables you to wipe out ALL your debts without bankruptcy. If some of the creditors do appear, then the court allows you to spread your payments out over a three year period in smaller amounts so that you can afford to pay.
Once you file under the Wage Earner Plan, you stop bill collectors, lawsuits, judgements, assignments, seized bank accounts, and other actions against you. And to top it off, your credit rating is, in many cases, improved because you made an honest effort to work with the lending firms. Additionally, if the seller used deceptive trade practices to induce your purchase, your debt may be wiped out under the provisions of the Uniform Commercial Code. Under the Homestead Act, your residence can be exempted from levy to the extent determined by local law. Check at your local courthouse.

What is Wage Earner Plan

Popular name for a debt repayment plan under Chapter 13 of the Bankruptcy Code. The debtor voluntarily agrees to repay over a three- to five-year period a portion of obligations due creditors in exchange for a promise by creditors to refrain from further collection efforts. Court supervised repayment plans help debtors earning a regular income restore their credit ratings without liquidating their personal or financial assets

How to : Filing under the Wage Earner Plan ?

Step 1: File under the Wage Earner Plan.
Step 2: Show up to court.
Step 3: Wait and see how everything turns out.

Requirement for protection under Chapter 13 - Wage Earner Plan:

For a Chapter 13 bankruptcy, you'll need a stable income with disposable income (income left over after you pay the bare necessities of life such as shelter, food and utilities). You must have no more than $922,975 in secured debt (debt involving property that your creditor might take if you don't make your payments) and $307,675 in unsecured debt. These amounts are adjusted periodically to reflect changes in the consumer price index. The court filing fee is $274.