Chapter 13 Bankruptcy Filing Procedure

Because there are a number of different bankruptcy chapters

, many people think that wage earner bankruptcy is a chapter to itself. However, wage earner bankruptcy is merely a different way of referring to a chapter 13 bankruptcy, also known as reorganization bankruptcy. Wage earner bankruptcy or chapter 13 in bankruptcy refers to the form of bankruptcy as described in chapter 13 of the United States Bankruptcy Code.

Because a wage earner bankruptcy is not so much a discharge of all debts, but more a financial rehabilitation program to help debtors get back on their feet, its most important aspect is the construction of a repayment plan to pay back creditors over time. Debtor's income or wages give this support to repayment plan, which clarifies the term "wage earner bankruptcy." During a wage earner bankruptcy or chapter 13 bankruptcy filing, the debtor himself proposes a repayment plan based on his income to the court along with the rest of his wage earner bankruptcy or chapter 13 bankruptcy petition.

The wage earner bankruptcy or chapter 13 bankruptcy rules also includes a reorganization of the debtor's assets, a list of assets that are exempt, as well any relevant information about money owed to him. If the debtor is married, all appropriate information about the spouse's financial information will be required as part of the chapter 13 bankruptcy petition. The bankruptcy court will review the bankruptcy petition and appoint a trustee to oversee all the different processes involved in the wage earner bankruptcy.

In any form of bankruptcy, the trustee is in fact an court-appointed representative of the creditors. The role of the trustee in a chapter 13 is to ensure that all the information in the chapter 13 bankruptcy petition is correct and complete, and to oversee the reimbursement of the creditors by first the reorganization of the debtor's assets, and second, the repayment plan. If you are in deep debt and you have a monthly income, you are best advised to seek the legal advice of a chapter 13 bankruptcy lawyer. He or she will be able to review your financial and legal situation and advise you whether you are eligible for wage earner bankruptcy or whether another form of debt relief is appropriate.

by: Steven Anderson

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