Wage Earner Plan (Chapter 13 Bankruptcy)
- Wage Earner Plan (Chapter 13 Bankruptcy)
Also known as a Chapter 13 bankruptcy, this enables individuals with regular income to develop a plan to repay all or part of their debts for a period of three to five years. The repayment period depends on the debtor's monthly income as compared to the applicable state median. During this repayment period, the law forbids creditors from starting or continuing collection efforts.
Chapter 13 was formerly called a wage earner's plan because relief under it was only available to individuals who earned a regular wage. Subsequent statute changes expanded it to include any individual, including the self-employed and those operating an unincorporated business.
A Chapter 13 bankruptcy offers individuals a number of advantages over Chapter 7, the most important being that it offers them an opportunity to save their homes from foreclosure. Chapter 13 also allows individuals to reschedule secured debts - except for a mortgage on their primary residence - and extend them over the life of the plan, which may lower their payments. In addition, Chapter 13 has a special provision that may protect co-signers, and also acts like a consolidation plan under which plan payments are made to a trustee who distributes them to creditors.
Any individual is eligible for Chapter 13 relief as long as his or her unsecured debts are less than $360,475, and secured debts are less than $1,081,400 (as of 2010), and he or she has received credit counseling within 180 days before filing. A corporation or partnership is not eligible for Chapter 13 bankruptcy.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Chapter 13 - Wage Earner's Plan — A petition designed for any insolvent debtor who is a wage earner to provide the debtor with additional time to pay off creditors (Legal Dictionary: Bankruptcy Law) United Glossary of Bankruptcy Terms 2012 … Glossary of Bankruptcy
wage earner's plan — A chapter 13 plan of reorganization (SA Bankruptcy.com) United Glossary of Bankruptcy Terms 2012 … Glossary of Bankruptcy
wage earner's plan — (Chapter 13). Under Chapter 13 of the Bankruptcy Code, any insolvent debtor who is a wage earner (earns wages, salary, or commission) can formulate and file a plan with the court that provides the debtor with additional time to pay off unsecured… … Black's law dictionary
wage earner's plan — (Chapter 13). Under Chapter 13 of the Bankruptcy Code, any insolvent debtor who is a wage earner (earns wages, salary, or commission) can formulate and file a plan with the court that provides the debtor with additional time to pay off unsecured… … Black's law dictionary
wage earner's plan — A form of bankruptcy under a former federal law whereby an individual retained her property and paid off a debt over a period of time, as determined by a court and subject to supervision by the court. Dictionary from West s Encyclopedia of… … Law dictionary
Chapter 13 (wage earner's) bankruptcy — See bankruptcy proceedings (wage earner s plan) … Black's law dictionary
Chapter 13 (wage earner's) bankruptcy — See bankruptcy proceedings (wage earner s plan) … Black's law dictionary
wage-earner's plan — A proceeding provided by Chapter XIII of the Bankruptcy Act, the function of which is to assist the financial rehabilitation of a debtor who qualifies as a wage earner, without adjudicating him a bankrupt. 9 Am J2d BanKr §§ 1382 et seq … Ballentine's law dictionary
Chapter 13 — bankruptcy proceedings for an individual with the intention of rescheduling the individual s debt (rather than liquidating the individual s assets and debt; an individual files under Chapter 7 to liquidate), Chapter 13 is referred to as… … Glossary of Bankruptcy
Chapter 13 — n: chapter 13 of the U.S. Bankruptcy Code see also bankruptcy code in the important laws section Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
