When you are facing tough financial times, losing your job can make matters even worse. Without an income, debts and overdue bills can continue to pile up. Perhaps losing your job is what triggered your financial difficulties and you now wonder what you are going to do. In either situation, you may consider filing for bankruptcy which can help minimize or eliminate your mounting personal debts in the wake of an unexpected or expected time without a paycheck.
If you are unemployed and considering bankruptcy as an option to have a fresh start at your finances, you will want to speak to an experienced Bankruptcy attorney. Because unemployment can play a role in determining what type of bankruptcy you can file and how that will impact your assets, it is important to have the guidance of a skilled attorney to walk you through the process.
Bankruptcy and Unemployment
Under the bankruptcy rules, you are not required to have a job in order to file. However, you are required to qualify for the bankruptcy. How you qualify depends on which type of bankruptcy you choose to file.
- Chapter 7 Bankruptcy: In a Chapter 7 bankruptcy, any non-exempt assets you own will be sold to get funds to pay back your creditors. To qualify for this type of bankruptcy, you have to pass the Georgia Means Test. This test looks at your past income and determines if it is below the state median. This is where unemployment can be an advantage—with no income, you would qualify for a chapter 7 bankruptcy. It is important to note that the court looks back at your income for the past 6 months. This means if you recently lost a high paying job, you may have to wait a few months before proceeding with your bankruptcy.
- Chapter 13 Bankruptcy: If you are unemployed, you will likely not get approved for a chapter 13 bankruptcy. A chapter 13 Bankruptcy differs from a chapter 7 bankruptcy, in that it is a debt repayment plan and your assets are not sold to repay debtors. In order to participate in a repayment plan, you must have an income that can be used toward repaying your debts. If you lost your job, this won’t be possible unless you have a secondary source of income that can be used to pay towards your plan.
Get Guidance on Your Lawrenceville Bankruptcy Options
When you are facing financial hardship, unemployment only adds to your stress. If you feel that bankruptcy could be the best option to get you back on your feet, unemployment doesn’t have to stop you from filing. Bankruptcy can be the best way to eliminate overwhelming debts and help get you on your way toward a better financial future.
If you are unemployed and thinking about filing bankruptcy, contact the skilled Lawrenceville bankruptcy attorneys at The Ballard Law Group. We understand that difficult life events often lead to financial trouble, and we can assist you in determining what is the best bankruptcy option for your individual situation. We offer a free bankruptcy consultation, so to get your questions answered contact The Ballard Law Group by calling our office at 404-220-9906, contacting us online, or chatting with one of our representatives now.