Filing for Bankruptcy After Losing Your Job

Losing your job may be something you were worried would happen, or it may have occurred suddenly and unexpectedly. If you have now been searching for new employment but have been unsuccessful, you may be in a position where you have begun charging necessities to your credit cards to get by while acknowledging that this practice is unsustainable. You may be realizing that you owe more debt than you will be able to repay, and you may be considering bankruptcy. Is bankruptcy the right decision for a person in this situation.

Many Floridians consider bankruptcy after they have lost their jobs due to layoffs or terminations for cause, especially when they are unable to find employment at all, or a new job that pays as much as their previous one did. Whether or not you should file for bankruptcy will depend on your specific financial circumstances, which you should discuss with a bankruptcy lawyer in West Palm Beach. Below, we can tell you more about some of the considerations to keep in mind if you are thinking about filing for bankruptcy as a result of job loss or unemployment.

Benefits of a Bankruptcy Filing After Losing Your Job

There are numerous benefits to bankruptcy if you have lost your job and are struggling with debt.

If you are eligible for a Chapter 7 bankruptcy filing, you can get a fresh start by having all of your eligible debt discharged. This can give you an opportunity to stop worrying about the debt you owe, get back on track with new employment, and make regular payments to creditors.

For anyone who is not eligible for Chapter 7 bankruptcy, you can still catch up on debts with a Chapter 13 filing. If you have been struggling to pay your mortgage during your period of unemployment, Chapter 13 bankruptcy also has the added benefit of stopping a foreclosure and allowing you to catch up on mortgage payments with your servicer.

Eligibility for Personal Bankruptcy: Chapter 7 Versus Chapter 13 After Unemployment

You may be wondering if you are eligible for Chapter 7 bankruptcy, which requires you to pass the “means test.” Given that there is a six-month lookback period for determining your income and Chapter eligibility, if you lost your job very recently, you might look ineligible for this type of bankruptcy due to your earnings while you were still employed. It may be possible to pass the means test still, but you will need to work with a bankruptcy lawyer to clarify your present eligibility based on your lack of income.

For anyone who is not eligible for Chapter 7 despite a recent job loss, you can often still file for Chapter 13 bankruptcy, and a bankruptcy attorney in South Florida can help.

Contact a West Palm Beach Bankruptcy Attorney Today for Assistance with Your Filing

Losing your job can be devastating, even if you were not already struggling with debt while earning a regular paycheck. The loss of your income can lead to debt accruing quickly, and you may not know how to deal with the financial pressure you are under. To find out more about whether a personal bankruptcy filing is right for you, it is important to seek advice from one of the experienced West Palm Beach bankruptcy lawyers at  Kelley Kaplan Delaney & Eller, PLLC, PLLC. We can speak with you today about your financial circumstances, discuss your eligibility for different types of consumer bankruptcy, and begin working with you on your bankruptcy petition. Contact our firm for more information.

Source:

law.cornell.edu/uscode/text/11