"Texas Wager Earner Plan"

Chapter 13 is commonly referred to as a Texas Wage Earner Plan. Qualification for filing Texas wage earner plans are set forth in 11 U.S.C. 1301, et seq. According theses sections, all debtors who select Chapter 13 in Texas must maintain regular income and dedicate all "disposable income," as defined by statute, to the plan. The trustee in turn disburses payments to creditors for a 5 year period. Creditors must receive as favorable treatment under a Chapter 13 plan as would be available if the case were filed under Chapter 7.

In Texas, legal definitions are derived from many sources, both federal and state: case law, statutes, rules of procedure, rules of evidence, and local practices. The application of law determines meaning, rather than common usage in ordinary conversations. For instance, a particular phrase used in a significant court decision may become popular, and is understood to include the rationale and requirements contained in the published opinion. For this reason, any debtor who may have questions about legal terminology should contact a qualified attorney for clarification. Most consumer specialists offer free consultations for anyone who is considering filing Chapter 7 or Chapter 13.

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