Wipe Out Debts Without Bankruptcy !

 In 1938 a federal law was passed known as the Wage 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, judgements, 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 with an attorney before going forward with this to be sure this is how you should handle your problem. 

 

Can you file bankruptcy without a lawyer ?

 As stated previously, I will try to give you little tidbits of information that isn't well known or is held almost secret to the general public on credit related subjects to help you manage your debt for a better life.                                     

                                                              This is the first.

         How to file bankruptcy when you can't afford it !                

It costs between $200 and $800 to file a bankruptcy, depending whether it is #7, #11 or #13.

Many people are so broke they can't pay the filing fee let alone a lawyer fee, but---

TIP:  The bankruptcy code provides for installments if you can't raise the fee all at once.

You must obtain court approval for installments, but this is usually allowed once the court is convinced you don't have the funds.

If however you think you can raise the money for a lawyer, they could cost you $1,000 or more depending where you're located. With all the covid-19 related filings you may have a hard time finding one.  BUT---

You can also handle your own bankruptcy. Consider it if you are without assets and don't need to be concerned with the complicated exemption rules.

For around $20 at "office depot" pick up an E-Z Legal bankruptcy kit and you will have everything you will need to process your own routine bankruptcy.

If you run into problems you can always retain an attorney to handle that problem at a much smaller charge.

So their you have it. this may help someone when they need it most and it was FREE !

Thanks for stopping by and please come back,  Dutch