The wage earner’s plan, also known as a Chapter 13 bankruptcy, is a possibility in Florida. You would be able to restructure your debts and prevent creditors from bothering you for five years.
Keep your home
A Chapter 13 bankruptcy gives you the possibility of keeping your home. Even if your house is already in the foreclosure process, you could halt the foreclosure by filing for Chapter 13 bankruptcy.
One monthly amount
When you consolidate your debts through a Chapter 13 bankruptcy, you only need to make one payment a month. This is less stressful than trying to manage multiple debts. Bankruptcy law allows the possibility of including mortgage debt for non-primary residences in this consolidation.
Repay your debts
When you go through a Chapter 13 bankruptcy, you receive a three- to five-year plan for paying off your debts. During this period, creditors can’t attempt to collect repayments from you.
Keep your property
On a wage earner’s plan, you get to keep your property. In contrast, you must give up much of your property in a Chapter 7 bankruptcy.
Qualification for a wage earner’s plan
In the past, only people who earned a regular wage qualified for a Chapter 13 bankruptcy. Self-employed individuals and certain business owners may now apply for a Chapter 13 bankruptcy too. Partnerships and corporations aren’t eligible. Your unsecured debts must be below $394,725, and your secured debts must be below $1,184,200 to qualify. You must also receive credit counseling from an approved agency within 180 days of filing. The bankruptcy court expects you to submit a repayment plan with your application as well.
A wage earner’s plan is a type of bankruptcy that allows you to keep your property and consolidate your debts into a more manageable payment plan. Business owners could file for this type of bankruptcy too as long as they don’t run a corporation or a partnership.
