Most people do not know about the Wage Earner Plan. This federal law was passed in 1938 and it is administered by the same court branch that deals with bankruptcy claims.
Truth is that bankruptcy although tempting should be your last resort to getting out of debt. Filing bankruptcy may clean your credit immediately but the damage stays on your credit file for 10 solid years before it is removed and during this time it will be quite impossible to receive credit for anything because most creditors will not be willing to deal with you. To utilize the Wage Earner Law requires one thing, that you be a wage earner. That’s it. This is unlike bankruptcy because it does not wipe your credit.
The wage earner law only requires that when you file and are called to court, your creditors must appear and prove in a court of law that you owe them money. Most creditors do not appear because they do not have the time to follow up on your debt in person. On average about 40-45% of creditors actually appear and when they do appear and the court rules against you, then you can set up a real payment plan over 2-3 years to pay back the debt. Setting up this payment plan can also help your credit because you have made an attempt to pay back the creditor directly and not deal with a collection agency. Most of the time creditors do not appear in which case you can wipe that debt from your record as soon as you walk out of the court.
Upon filing the Wage Earner Plan you legally stop any collection agency, lawsuits negative judgment etc against you. When you go to court and the judge rules against the creditor for using deceptive tactics to solicit your business, your debt will be wiped out immediately under the Uniform Commercial Code. Most of these guerilla tactics only work if you know the law and can use it against the creditors. Information is power. Learn more about how to clean your credit at www.1800aaacredit.com .
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