Southaven, Mississippi
1625 Main Street Suite B
Southaven, MS 38671
901-596-4022

What Is a Wage Earner Plan & When Is It an Option? February 14, 2018

Southaven, DeSoto
What Is a Wage Earner Plan & When Is It an Option?  , Southaven, Mississippi

When a mounting pile of debt becomes too much to handle, filing for bankruptcy can be an effective solution. However, there is more than one type to choose from: Chapter 7 is designed to eliminate debt while a Chapter 13, also referred to as a wage earner plan, allows debtors to restructure their finances and repay creditors over time. To give you some insight into the latter option, the Robert Chamoun Law Firm in  Southaven, MS, explains what it is and who it benefits.

How the Wage Earner Plan Works

wage earnerUnlike in a Chapter 7 bankruptcy, those who file a Chapter 13 aren’t seeking complete forgiveness of their debts but rather a way to preserve their assets while paying creditors back through an affordable repayment plan. Along with their petition for bankruptcy, debtors must submit a plan of action suitable to their budget that details how they will repay their debts over the course of three to five years. Once the court approves the plan, creditors won’t be able to collect on any debt that hasn’t been included in the repayment schedule.

Eligibility Requirements

Though the wage earner plan was initially intended only for those who brought in a steady income, it is currently available to all individuals. However, interested parties must still meet the specified eligibility requirements. They are obligated to undergo a state-approved credit counseling program before filing, and they can’t have a previous bankruptcy dismissed within 180 days of their current petition. Their unsecured debts can’t total more than $360, 475, and their secured debts can’t exceed $1,081,400.

The wage earner plan appeals to many since it doesn’t require liquefying assets and typically won’t affect the debtor’s credit rating as long as a Chapter 7 would. If you are interested in exploring your debt relief options, don’t turn to the Robert Chamoun Law Firm. Backed by over 30 years of experience, they have the skill and expertise to help you determine the most suitable step to take to remedy your financial situation. Call (901) 596-4022 to schedule a consultation, or visit their website for additional information on how they can assist. 

Other Announcements, Events and Deals from Robert Chamoun Law Firm
Criminal Law Attorney on Mississippi Drug Possession Laws & Penalties, Southaven, Mississippi
Possession of a controlled substance in Mississippi is a serious offense and punishments can have a long-lasting impact on your life. Regardless of whether you have an extensive...read more
What Is a Plea Bargain? A Criminal Law Attorney Explains, Southaven, Mississippi
The American justice system is predicated on criminal law. No matter the charges you’re facing, having a grasp of basic concepts such as plea bargains is essential for understanding ...read more
What Are the Legal Grounds for Filing for Divorce? , Southaven, Mississippi
Filing for divorce isn’t as simple as asking for one. To obtain it, the party requesting the separation must cite legally recognized “grounds” for doing so. In Mississippi, there are...read more
A Brief Introduction to Chapter 7 Bankruptcy Law, Southaven, Mississippi
Are you struggling to find a way out of unmanageable debt? Are you at a loss as to how you can realistically pay off your outstanding balances? If so, Chapter 7 bankruptcy may offer ...read more