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Also known as a wage earner’s plan, Chapter 13 bankruptcy can be very beneficial for many people who have regular income due to a full-time job. However, it is important to take your job (as well as the income you earn) into consideration if you plan on filing for Chapter 13. You should be mindful of some of the immediate effects of filing for bankruptcy, from the advantages of this option to some of the responsibilities you will have, and you should also think about how this decision will affect you in the years to come.

By filing for Chapter 13, people can typically repay a portion of their debts or all of the debt they owe through regular payments over the course of three to five years. This can be very beneficial for those who are struggling with debt and tired of being harassed by creditors because it puts an end to collection attempts and allows debtors to work towards financial freedom. However, people may be unable to continue making scheduled payments due to the loss of their job or a decrease in the amount of income they receive, which may necessitate pursuing a hardship discharge.

If your income is disrupted during the repayment process, a hardship discharge could be advantageous. Moreover, there are other job-related considerations with regard to Chapter 13. For example, you should try to prevent the process of filing for bankruptcy from disrupting your employment due to stress, taking too much time off, etc. For many people with a steady income, this is an ideal way to get rid of debt.