Filing Bankruptcy When You Don’t Have a Job

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Filing Bankruptcy Unemployed

How Filing Bankruptcy Works When You’re Unemployed

You don’t have to be employed to file bankruptcy. In fact, filing bankruptcy while unemployed will most likely make it easier for you to pass the means test. That being said, there are several ways that filing bankruptcy will be different if you’re unemployed. Today we’ll go over some of these issues, and how it might affect your case. Remember, the best way to file bankruptcy is to enlist help from a bankruptcy lawyer who can guide you through the process.

Chapter 7

Filing Chapter 7 shouldn’t pose you any problems if you’re unemployed. Since you’ll be wiping out your debts instead of paying them back, you’ll have to take a means test. The means test has to do with your income – and if you’re unemployed, you most likely don’t have income. Unemployment benefits rarely put you above the median income for your state, so you don’t have to worry about this affecting your status either.

Chapter 13

With Chapter 13 bankruptcy, you set up a repayment plan that allows you to pay back debts in a way that is feasible for your income. When you’re unemployed, you may still have sources of income coming in, such as benefits. If you’re able to prove to the court that you can afford to make payments on a repayment plan, it’s possible that you’ll get approved for Chapter 13. Of course, since Chapter 13 is a long-term plan, there’s a good chance that you might find unemployment in the time you’re making payments. If this happens, you need to notify the court. It’s likely that your repayment plan will need to be adjusted to account for your new income source.

Contact RGG Law about Filing Bankruptcy

Remember, you can only file bankruptcy a certain amount of times in a certain time period, so don’t rush to a decision. Immediately filing bankruptcy after becoming unemployed may not be your best course of action, depending on your future situation. That’s why trusting an expert to help you make the decision is the best thing you can do. The team at RGG Law are experts in filing bankruptcy.  We can guide you through every step of the process, helping you make the decisions that will benefit you the most. Filing bankruptcy can be complicated, so don’t leave it up to chance. Let a professional help. Contact us today for more information and to schedule a free consultation with a bankruptcy lawyer.