The ‘Wage Earner Bankruptcy’ or Chapter 13 bankruptcy, is designed for those individuals who seek to repay their debts over a period of time. They have the ability to execute the repayment with a designated plan and hence seek the protection using the Chapter 13 of the U.S. Bankruptcy Code.
These individuals or debtors are
- The kind of people who are owners of properties that cannot be exempted under Chapter 7
- The ones who possess mortgage amounts, past dues or car loans and seek towards the repayment over time without being enforced to foreclose
- The type of folks who have debts from student loans which cannot be discharged using Chapter 7 bankruptcy
- The people who have the calculated sufficient disposable income, as per the bankruptcy laws, to repay their debts over a finite period of time (three or five years)
So, if the debtor complies with one of the above conditions, he needs to have a concrete payment plan that is also approved by his creditors. The major difference or benefit that a debtor may get from Chapter 13 bankruptcy as against debt consolidation is that he can get himself protected from credit harassments, late fees and continued interest on his debts. Through this protection of the U.S. Bankruptcy Code, the debtor catches up with all of his mortgages, car loans, and rental dues.
Formulating the appropriate payment plan can be done in conjunction with a bank attorney from an acclaimed law firm such as Recovery Law Group. They serve the clients with their team of bankruptcy attorney, Los Angeles, California and also in Dallas, Texas.