Clear Up Your Credit Without Bankruptcy
It is possible to clear your credit without claiming bankruptcy using a
little known method. It is know as the Wage Earners Plan, and is
provided for under Chapter 13 of the Federal Bankruptcy Act.
It is not bankruptcy since none of your debts are actually discharged.
Anyone who earns a living from wages, salaries or commissions may use
it. The plan actually is a court' supervised debt consolidation under
which all your debts are turned over to a federal court for payment from
a portion of your income.
In order for this plan to be accepted by the courts, you must design it
yourself so that your payments are enough to pay off your creditors over
no more than three years. Once your payment plan is accepted by the
courts, all your creditors must also accept it.
In order to file, you must follow this procedure:
First, go to the U.S. District Court in your area and ask to speak to
the referee. You will be given several forms on which to list your
various debts and your income. At this time, you will be required to pay
a filing fee of S20 to S35. Within 24 hours after you file, a
restraining order will be issued to all of your creditors. This will do
the following things for you:
1. Stop all legal action against you.
2. Stop any of your creditors from attaching your wages. 3. Stop any
creditor from seizing your property.
3. Stop any creditor from seizing your property.
4. Prohibit creditors from contacting, harassing or
threatening you in any
5. Stop all interest and late payment fees.
In most cases, there is at least a three month
interval, between the filing date and the actual court date that is
assigned to you, at which time you must pay court fee of S15 to S25.
The payment fee period is only one of the benefit that you will have
from this plan.
Other benefits include:
1. it will reduce your payments to an affordable amount.
2. It wil