How does a Chapter 11 bankruptcy affect my wages?

A Chapter 11 bankruptcy in West Virginia can potentially affect your wages in several ways. First, under Chapter 11, you may be required to propose a repayment plan that has an immediate effect on your wages. This plan would require you to pay creditors a portion of your wages over a prescribed period of time. If you are unable to make the payments, the court may order a garnishment of your wages until the debt is paid. Second, if you are a small business owner or self-employed, the court might order you to liquidate some of your assets to pay your creditors. This could mean selling off inventory, equipment, or other items of value. Depending on the size of your business and how much you owe, you could have to take a pay cut in order to make ends meet. Finally, depending on the terms of your repayment plan, you may have to give up any bonuses or raises that you would otherwise be entitled to until your debt is paid off. This could significantly reduce your income over the course of the repayment plan. In short, if you go through a Chapter 11 bankruptcy in West Virginia, there is potential that your wages could be affected. Be sure to thoroughly understand the terms of your repayment plan before agreeing to it.

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How does a Chapter 11 bankruptcy affect my wages?

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