Chapter 13 is frequently referred to as a “wage earner” plan, although it actually applies to individuals with regular income from any source, not just wages. It is used by individuals employed by others or self-employed in their own business to re-pay their debt over a reasonable period of time. Chapter 13 permits a debtor to pay a percentage of the debt back based on the debtor’s ability if the debtor cannot afford a full payback.
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