No Job? No Problem! How Bankruptcy Can Help When Out of a Job
This article will give you an overview on how bankruptcy can help when you are out of a job. Unemployment brings financial challenges, often leaving you drowning in debt. Bankruptcy may provide the relief you need, offering a viable solution during tough times.
Out of a Job and Chapter 7 Bankruptcy
Lack of income doesn’t hinder eligibility for Chapter 7 bankruptcy. In fact, it can make qualifying easier. However, not having income might complicate reaffirming certain debts, like car loans or mortgages.
Specifically, the reaffirmation process is a process where you keep certain loans like vehicle and house loans through the bankruptcy. If you are out of a job, you may have to speak to the judge to explain how you will be able to make your vehicle and house payments. As such, the best bet is to find a new job as soon as possible.
Out of a Job in a Chapter 13 Bankruptcy
Income plays a crucial role in Chapter 13 bankruptcy, as you need it to pay off debts through a repayment plan. Bankruptcy can still help if you are out of a job when you file a chapter 13 but you may struggle to make your plan payments. However, should you find a new job quickly, you can amend your repayment plan and keep your case on track.
Benefits of Bankruptcy
Bankruptcy offers several benefits when you’re out of a job:
- Eliminating or reducing debt: Unsecured debts may be discharged, providing relief.
- Stopping collection efforts: Filing for bankruptcy enacts an automatic stay, pausing creditor actions like wage garnishments or repossession.
- Fresh financial start: Bankruptcy offers a chance to rebuild your finances without the burden of overwhelming debt.
Conclusion
When unemployment strikes, bankruptcy can be a lifesaver, offering relief from debt and providing a fresh start. Carefully consider your options and consult a professional to determine if bankruptcy is the right solution for your situation.
Please feel free to reach out for a free consultation by emailing info@tejeslaw.com, calling (407) 734-5166 or using this link to schedule an appointment yourself.
