wage earner vs bankruptcy

what\'s the difference ?

how long does it show on credit report ?

In a Bankruptcy in America Wage Earners (Chapter 13) will allow you to pay a portion of your debts off over a period of time and usually keep you home and other assets ( You must be employed with a regular income hence the term wage earners).

A Bankruptcy (Chapter 7) will usually cause you to have all of your debts discharged and you will likely loose your home and other assets. If you find you are totally disabled, laid off or sometimes self employed.

The difference between the wage earners (Chapter 13) and the bankrutpcy (Chapter 7) impact on the credit report is 3 years in total. Chapter 13 is a 7 year reporting limit and the Chapter 7 is a 10 year reporting limit. The chapter 13 is always the best option when available because you can start rebuilding your credit after the term of your settlement is up. Bankrutpcy in America has been effected by newly revised laws in the fall of 2005. Please ask more indepth questions and if you have any concerns use the Bankruptcy America online assessment.