The wage earner’s bankruptcy.
Chapter 13 is often referred to as the “wage earner’s bankruptcy” or a “reorganization bankruptcy” because it gives people with a steady income the chance to dramatically reduce their debt while keeping the assets they want. Like Chapter 7, you have the chance to eliminate ( discharge ) some or all of your debt. Unlike Chapter 7, you will have to make payments to the bankruptcy trustee, but at the same time you will be permitted to keep more assets than your exemptions allow.
Upon the filing of your Chapter 13 bankruptcy garnishments, lawsuits, foreclosures, repossessions and other actions by your creditors are stopped automatically by federal law!
