Bankruptcy can be a confusing process. Even if you think you know everything about it, there may be things you think you know that are actually not true. There are many myths out there about this process. Not understanding the truth about it can cause you issues if you are deciding whether to file in Virginia.
You may have heard the term "wage earner plan" used in conjunction with talking about bankruptcy. This term, according to the Eastern District of Virginia, is used in the state as another way to identify Chapter 13 bankruptcy. Because Chapter 13 is a repayment plan, the name is descriptive of the fact that you need to be a wage earner to file under that chapter so you can make the repayments required.
If you are filing Chapter 13 bankruptcy in Virginia, you may be feeling a little stressed out about it. That is perfectly natural. This is a major decision and a huge process to go through. Understanding how the process works can make things a little easier on you. Luckily, the U.S. Courts are fairly transparent about how Chapter 13 works and what you can expect during the process.
If you have more debt than income, you may wonder which of your bills you should apply your money to each month. Falling behind on the mortgage of your Virginia home does not seem like an option, but creditors are becoming more and more aggressive in their attempt to collect the debts, and now you fear having your wages garnished, which will only make things worse.