Experiencing the loss of your job can be one of the most common reasons to file for bankruptcy. Many people who lose their primary source of income are likely unable to manage the financial commitments that they made with their original salary. Even if you are recently unemployed, bankruptcy may still be on the table for you.
How Do You Qualify For Bankruptcy After Losing Your Job?
Under Chapter 7 bankruptcy eligibility, your income will be compared to the median income of other households within the state. If you’re facing unemployment or you’ve become unemployed, you will fall below the line and your eligibility can be analyzed. Taking a look at your income from the past six months will represent if you will qualify for a backup see moving forward.
You don’t need a job to file for Chapter 13 bankruptcy but the 3 to 5 year repayment plan can be difficult to qualify for without a steady income. If you have Social Security benefits, a pension or other forms of regular income, this could give you access to the sufficient payment plan that is required for you to qualify for chapter 13 plan. Under Chapter 13 you can protect more of your assets and likely face more favorable improvements to your credit score in the future.
Should I File For Bankruptcy If I’ve Been Unemployed?
Talking to an experienced bankruptcy attorney is the best way to discover the ideal procedure for your current situation. Filing for bankruptcy too quickly after you lose your job could lead to a decline in your disposable income and more difficulty than you may have been facing. Choosing the ideal time to file for bankruptcy is a crucial step moving forward.
Contact us today if you’ve lost your job and you are considering the option of bankruptcy.
This article was written by Alla Tenina. Alla is one of the best bankruptcy attorneys in Los Angeles CA, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.