There is a federal bankruptcy law, Chapter 13, formerly known as the Wage Earner Plan, that might wipe out debts without bankruptcy.
The law is administrated by the same branch of our courts that handles standard bankruptcies.
You must be a wage earner to use the law, that is the primary requirements.
The Wage Earner Plan does not in itself wipe out debts, but a little known proviso of you filing requires your creditors to appear.
Statistics indicate that perhaps 40 percent fail to appear, in which case those debts are indeed wiped out.
In some cases, 100 percent 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 that you can afford to pay.
Once you file, you stop bill collectors, lawsuits, judgments, 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 creditor 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 any levy to the extent determined by local law.
Check at your local courthouse.
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