Should I File a Chapter 13 Wage Earner Plan, or Try Other Bankruptcy Alternatives?
Whether or not you should file a Chapter 13 Wage Earner Plan depends on your situation. First, you must determine if you qualify for Chapter 13. (Because a Chapter 13 bankruptcy is paid for out of the wages you earn each month, Chapter 13 is also known as a Wage Earner Plan).
For individuals in the United States, there are two basic forms of personal bankruptcy. Chapter 7 bankruptcy, also known as a liquidation bankruptcy, discharges your debts in a relatively short period of time.
Since new federal bankruptcy rules became law on October 17, 2005, anyone whose gross income is higher than the median income for their state is required to file bankruptcy under Chapter 13, instead of under Chapter 7. Therefore, if your income is higher than the median income for your area, the choice is made for you: you must file under Chapter 13.
Second, you should compare a Chapter 13 Wage Earner Plan with your other alternatives to straight Chapter 7 bankruptcy. Since a Chapter 13 plan will typically last for five years, you should explore any options that can be completed in less than five years. For example, if you can get a debt consolidation loan and repay it in three years, a debt consolidation loan is probably a better option for you than a five year Chapter 13 Wage Earner Plan.
If you dont qualify for a debt consolidation loan, but you want to avoid the court process, and can afford to pay your debts in full over a three to five year period, credit counseling may also be an option.
Finally, you may be able to cut your expenses and repay your debts yourself.
The court process is never fun, and you will want an attorney's assistance, which will increase the cost, so only choose a Chapter 13 plan if it is the best option for you.
A Chapter 13 Wage Earner Plan is designed to give you a fresh start, so review your options and decide which course of action is best for you.
Thomas Gibson writes about bankruptcy and bankruptcy alternatives. Visit http://www.bankruptcy-alternatives-information.com/chapter-13-wage-earner-plan-information.htm for information about whether or not you should file a Chapter 13 Wage Earner Plan.
Chapter 13 Bankruptcy - An Overview
Chapter 13 bankruptcy is also known as Wage Earner Plan or reorganization bankruptcy. The bankruptcy as per this chapter of t...
Declaring Bankruptcy - Is Chapter 13 The Answer To Your Problems?
Chapter 13 is the chapter under the bankruptcy code which allows a person to repay all or a portion of his or her debt under ...
Bankruptcy - The Last Resort For Releiving Debt
Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. This is o...
Is Chapter 11 Bankruptcy For You
If your business is having trouble and you need to file for bankruptcy your lawyer will most likely suggest a chapter 11. A c...
See What Bankruptcy Services Offer You
If you ever find yourself in need of bankruptcy services, you need to know what services are available and what they have to ...
Can You Choose the Type Of Bankruptcy Filling?
In general, you can choose the type of bankruptcy for filling, under certain circumstances you may only eligible for certain ...
Getting A Handle On Bankruptcy Law
In the USA today there have been some dramatic changes made in relation to the Bankruptcy Law. It is important therefore tha...
Reasons To File For Bankruptcy
Although no one likes to admit it, financial problems are very common. Financial problems occur for a variety of different r...
Chapter 13 Bankruptcy Cases
Chapter 13 is for individuals with a standard income, keeping in mind their intention to pay their debts but are unable to do...
Learn The Pros And Cons Of Bankruptcy
People have to file for bankruptcy and therefore there are pros and cons of bankruptcy that need to be understood before taki...
Chapter 13 Bankruptcy
Chapter 13 is one of the methods that individuals can use to file for bankruptcy. This bankruptcy filing offers individuals a...
Chapter 13 Bankruptcy Dismissal
Bankruptcy is a legally declared inability of an individual or organization to pay creditors. During the course of a bankrupt...
California Bankruptcy - Credit Score at Stake
California bankruptcy cases are mainly dealt under chapter 13 with the prime aim of ensuring recovery from defaulters at any ...
Chapter 7 Bankruptcy and You
Chapter 7 bankruptcy is the type of discharge that most people associate with the idea of bankruptcy. Chapter 7 is also the o...
Bankruptcy Fundamentals
Bankruptcies can be called reorganizations or liquidations, depending on which type of bankruptcy you decide to do. Both a C...
Outline of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a bankruptcy program that lets the debtors who qualify for it keep most of their property, and pay o...
Chapter 7 Bankruptcy - A Quick Overview
The concept of bankruptcy that the common person has, is about the chapter 7 bankruptcy. This type of bankruptcy is also term...
Chapter 7 vs. Chapter 13 Bankruptcy
Chapter 13 bankruptcy is for individuals in the United States who would like to undergo a financial reconstruction supervised...
Bankruptcy Alternative - What Are the Alternatives to Bankruptcy?
There are some alternatives to filing for bankruptcy, but you have to carefully research them. You also have to see how they ...
Nevada Bankruptcy Issues - What Property Can I Keep if I File a Chapter 7 Bankruptcy?
The property that is exempt, i.e. items you can keep if you file a Chapter 7 Bankruptcy, typically depends on what state you ...