Chapter 13 Bankruptcy is frequently referred to as a 'wage earner' plan, although it actually applies to individuals with income from any source, not just wages. It is used by people employed by others or self-employed individuals in their own business to re-pay their debt over a reasonable period of time, typically 3-5 years. Chapter 13 permits a debtor to pay a percentage of their unsecured debt back based on the debtor's ability.
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