Bankruptcy For The Unemployed
With the recent recession, many Americans have found themselves out of work or between jobs. With no income coming in from a job, paying bills can be difficult if not impossible. Through bankruptcy, however, you may be able to get your life back on track and get the relief you need from overwhelming debt.
At Marcus H. Herbert & Associates, we can help you decide if bankruptcy is right for you and whether you should file for Chapter 7 or Chapter 13. We can also assist in developing a custom debt relief strategy to help you get back on your feet between jobs.
Can I File For Bankruptcy If I Don’t Have A Job?
You can still file for bankruptcy if you are unemployed. However, unemployment may have an impact on the type of bankruptcy you choose.
For example, in Chapter 13 bankruptcy, your debts are reorganized and you develop a three- to five-year repayment plan through the court. Without income, it can be difficult or impossible to create a repayment plan and have it approved through the court.
Chapter 7 bankruptcy may be available to you and simpler if you are unemployed. Through Chapter 7 bankruptcy, you can discharge many of your unsecured debts, including credit card debt and medical debt.
Will Bankruptcy Affect My Unemployment Payments?
In both Illinois and Kentucky, unemployment compensation is exempted from bankruptcy. This means that you will be able to keep the income you receive through unemployment during and after your bankruptcy.
Exemptions may allow you to keep you home, your car and public assistance benefits such as food stamps. We can explain the exemptions and how they may impact you.
Can Bankruptcy Filing Impact My Job?
You may have a job, and you may have concerns about bankruptcy and how it may impact your employment. Your employer cannot fire you for filing for bankruptcy. In fact, in many situations, your employer will never need to know that you filed for bankruptcy. If you are filing for bankruptcy to stop wage garnishment, however, then your employer will be notified that the wage garnishment has stopped. This should not impact your employment.
Speak With An Attorney About Filing Unemployment Bankruptcy
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.