In the United States bankruptcy code, different types of bankruptcy are divided into different chapters. Some chapters are well-known while others are more obscure. One of the most common and most well-known chapters is chapter 13. It is also known as wage-earner’s bankruptcy. It’s most commonly used by individuals and not by businesses. A chapter 13 attorney in St. Petersburg FL
can help you navigate this type of difficult situation.
Wage Earner’s Bankruptcy
Chapter 13 bankruptcy, or wage earner’s bankruptcy, is the type of bankruptcy that is most commonly used by individuals who are paid by someone else. These are individuals who work for a living and are not small business owners, or at least, are not primarily small business owners. If you have debts you can no longer pay off, you might need a chapter 13 attorney in St. Petersburg FL. Such bankruptcy means that your debts will be combined into one or two lump payments. Those lump payments will be figured based on your income.
Three or Five Years?
A three-year repayment plan is paradoxically for those who don’t make as much money as others. Because your income is not as high nor as reliable, you are required to pay off your debt sooner. That’s the best way to ensure that you actually get it all paid off. If you have a higher income or mitigating circumstances, you can get a five-year plan. You’ll pay off the debt over a certain period of time.