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What is the difference between “straight” bankruptcy and “wage-earner” bankruptcy?

April 26, 2017Bankruptcy difference straight wage-earner

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What is the difference between “straight” bankruptcy and “wage-earner” bankruptcy?

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Straight bankruptcy (Chapter 7) refers to proceedings involving an individual debtors (or married debtors) who want to wipe out their debts in one shot by liquidation and then start afresh financially. Wage-earner bankruptcy or debt consolidation (Chapter 13) is when a person or entity opts for a repayment plan where debts can be repaid over several years.