cancel

Today's Mortgage Rates


Amount:
- powered by Loan.com

community forums

Featuring over 100 topics of interest to DoItYourselfers.
comments

Can You Wipe Out Debts without Bankruptcy ?


In 1938 a federal law was passed known as the Wage Earner Plan. The same branch of our courts that handle bankruptcy administers it. 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.











member comments

or Register to leave a comment.

If you have a question you would like answered, please visit our Community Forums.

Did It Myself! Project

Add Beam Support

updated by kenno
February 2, 2010

80s Kitchen Rehab

updated by stickrod
January 25, 2010