"Wage Earner Plans" are another term for a Chapter 13 bankruptcy. It does not mean that you can't file for Chapter 7 if you earn wages (ie: work). In a Chapter 13, you are repaying debt, in a controlled manner over a prescribed number of years. There are fancy calculations that go into it and your "Chapter 13 Plan" has to be approved by the court, but it is designed so that everyone wins- you are relieved from the bad situation you are in right now while creditors get off your back, and the creditors are paid back something. Chapter 13's are great ways to get back on track if behind on mortgage payments. Since you are repaying some debt, one of the requirements is that you have steady income. This is where the name "wage earner plans" came from. If you do not have income, you cannot file for Chapter 13.
Bankruptcy laws are complicated. The rewards are terrific but should be approached with the help of a skilled bankruptcy lawyer. If you are considering bankruptcy, contact O'Connor Cadiz Law to find out if you are a good candidate. We'll get you set up for a no-cost, no-obligation consultation for bankruptcy. If its not a good option for you, we will tell you.