When you are considering filing for bankruptcy, you surely have a lot going on in your mind. It is natural to feel overwhelmed with all the complex legal proceedings and documents. So, while doing all of these, it is obvious that you think that your job might have some effects on bankruptcy. But what if you don’t have a job? What if you are unemployed? Can you still file for bankruptcy? Or should you? Our experienced Pittsburgh bankruptcy lawyer is here to answer all your questions.If You Don’t Have a Job, Can You Still File?
The answer to this is yes, of course, you can file. There is no law or regulation that can prohibit a person from filing for bankruptcy in the USA. Moreover losing a job or not being employed is probably the catalyst that made you take this decision. There is no minimum limit of income for filing for bankruptcy not there is an age limit. Even you don’t have to be an American citizen for filing for bankruptcy either. With just a few exceptions, you can file for bankruptcy easily.
However, when you are filing for bankruptcy, you need to think of the effect of unemployment on your case. That is why weigh all your options and set the right financial goals before you file for bankruptcy.Does Your Unemployment Affect Which Chapter You are Filing for?
When it comes to filing for a specific chapter of bankruptcy, you must go through the means test that will determine which chapter you can qualify for. The test will see if your income is below the income of the median household of your state. If this is the case, you will be qualifying for Chapter 7 bankruptcy. But if it is more than that, then you have to go for chapter 13 bankruptcy. However, if you want to qualify for chapter 7 even if your income is higher than the income of a median family, then you have to prove to the court that you don’t have enough disposable income to do that. For this, you need to talk to our Pittsburgh bankruptcy lawyer.
If you have recently lost your job and still want to file for chapter 13 bankruptcy, then you must wait a bit till you get a new job. This way you will be in a position to afford the repayment plan. If you are not able to wait, make sure that your unemployment benefits and social security income will cover the repayment plan. The court will only approve this if the idea seems to be feasible.
With Chapter 7, you might feel that is a better option for you. But think about the asset liquidation. You might lose an asset while paying off your debts. The Pittsburgh bankruptcy lawyer can guide you on this and how you can get exemptions.
Additionally, you need to consider that the means test actually calculates your income of six months prior to your bankruptcy filing. Hence, it cannot be a snap decision to file for bankruptcy. You have to wait for at least six months since you have lost your job.What If You Lose Your Job During Chapter 13 Bankruptcy?
This is a serious question especially as you have to deal with a repayment plan. If this happens, then don’t worry. The bankruptcy court will understand your situation. Your Pittsburgh bankruptcy lawyer can file a petition for changing and modifying your plan given the current employment situation of yours. If the financial burden is too much, you can also go for a hardship discharge.
For more information, come to us at Pittsburgh Bankruptcy Law Group.