When individuals in Memphis struggle with overdue bills, creditor calls, or other financial pressures, they sometimes seek legal solutions that allow them to retain key assets. Wage Earner Bankruptcy—often known as Chapter 13—can provide a path toward reorganizing debts while maintaining a steady income stream. Hurst Law Firm, P.A. assists those who want to explore this option and regain control of their finances.
How Wage Earner Bankruptcy Works
Under Chapter 13, a repayment plan is proposed to the court, typically lasting three to five years. During this period, debtors make regular payments to a trustee, who then distributes funds to creditors. This structure helps address mortgage arrears, auto loans, and other obligations in a more sustainable format. In many cases, individuals can keep their homes and vehicles as long as payments remain current under the plan.
Determining Eligibility
Individuals who wish to file Chapter 13 must have a reliable source of income to support the repayment plan. Additionally, certain debt limits apply. If unsecured and secured debts exceed legal thresholds, Chapter 13 may not be an option. Meeting with legal counsel early in the process helps clarify eligibility and identify whether Wage Earner Bankruptcy is a reasonable path forward.
Benefits of Chapter 13
One advantage of Chapter 13 is that it places a temporary halt on creditor actions once the case is filed. This pause, known as the automatic stay, usually suspends collection efforts and wage garnishments, allowing debtors time to organize their finances. Moreover, individuals may be able to catch up on past-due mortgage or car payments within the plan, preventing repossessions or the loss of a home. This can be especially valuable for those who need stable housing or dependable transportation to maintain steady employment.
Hurst Law Firm, P.A.’s Role
Filing for Chapter 13 requires submitting detailed financial records, including information about income, expenses, and debts. Hurst Law Firm, P.A. works with Memphis residents to assemble these documents, propose feasible repayment plans, and represent them in court as necessary. By taking a structured approach, the firm strives to help clients reduce the stress of mounting debts and create a plan they can manage.
