Wage Earner Plan Law and Legal Definition
Wage earner plan is a statutory remedy for insolvent debtors, under the Bankruptcy Reform Act. By the wage earner plan, a debtor's future earnings are paid to a trustee, who pays them to the creditors. The plan for such an arrangement must be submitted to the Court and to the creditors for their approval. Debtors who utilize such a remedy are relieved from garnishment, attachment and execution for debt during the term of the proceedings. It is also called Chapter XIII proceedings.
