Earner Plan. It is administered by the same branch
of our courts that handle bankruptcy. You must be a
wage-earner to use the law - that is the primary
requirement. The Wage Earner Plan does not in itself
'wipe out' debts, but a little-known proviso of your
filing requires that your creditors must appear to
verify your indebtedness to them.
Statistics indicate that 40% fail to appear, in
which case, those debts are indeed 'wiped out'. In
some cases 100% of the creditors fail to appear,
which enables you to wipe out ALL your debts without
bankruptcy. If some of the creditors do appear, then
the court allows you to spread your payments out
over a three year period in smaller amounts so that
you can afford to pay.
Once you file under the Wage Earner Plan, you stop
bill collectors, lawsuits, judgments, assignments,
seized bank accounts, and other actions against you.
And to top it off, your credit rating is, in many
cases, improved because you made an honest effort to
work with the lending firms.
Additionally, if the seller used deceptive trade
practices to induce your purchase, your debt may be
wiped out under the provisions of the Uniform
Commercial Code. Under the Homestead Act, your
residence can be exempted from levy to the extent
determined by local law. Check at your local
courthouse.
