What Is Wage Earner Bankruptcy?
Wage Earner Bankruptcy, also known as Chapter 13 bankruptcy, gives individuals with regular income a chance to manage overwhelming debt without losing their home, car, or other important assets. At Hurst Law Firm, P.A., we work with Memphis residents who need a structured and reliable way to get back on track financially.
Unlike Chapter 7, which involves liquidating certain assets, Wage Earner Bankruptcy focuses on reorganizing debts and creating a plan for repayment. This option is ideal for people who can pay some of what they owe, but need time and relief from constant collection efforts.
How the Repayment Plan Works
When you file for Chapter 13 in Memphis, a repayment plan is submitted to the court, usually lasting three to five years. This plan is based on your income, household expenses, and the types of debts you have. Priority debts, such as certain taxes or child support, are paid in full. Unsecured debts, like credit cards or medical bills, may only be partially paid—or even discharged—depending on your situation.
Throughout the plan, one monthly payment is made to a bankruptcy trustee, who then distributes the funds to creditors. This simplifies the process and provides a reliable structure that can stop wage garnishments, foreclosure actions, and repossession attempts.
Who Benefits from This Option?
Wage Earner Bankruptcy is ideal for those who earn consistent income but have fallen behind on bills due to illness, job loss, or unexpected expenses. It’s particularly useful for individuals trying to save a home from foreclosure or a vehicle from repossession.
Filing this type of bankruptcy allows you to keep your property while repaying what you can over time. Many Memphis residents choose this option because it balances debt relief with the ability to hold onto what matters most.
Let Hurst Law Firm, P.A. Help You Move Forward
At Hurst Law Firm, P.A., we understand that financial struggles don’t define who you are. Wage Earner Bankruptcy is not about giving up—it’s about finding a workable path forward. If you’re ready to explore whether this approach is right for you, our team is ready to stand with you as you take that step toward financial recovery.
