Can I File for Bankruptcy if I am Unemployed?

If you are facing mounting debts, you are likely searching for ways to keep your head above the water and get out of the deep end. Filing for bankruptcy can help you start on a path toward getting back on your feet since it discharges many types of unsecured debt, such as credit card debt or medical bills. However, if you are also unemployed, you might be wondering if you even qualify for this. The answer is both yes and no.

There are two types of bankruptcy you can file for – Chapter 7 and Chapter 13. When filing for a Chapter 13 bankruptcy, you are required to agree to a repayment plan, which will pay off either some or all of your debt. These types of plans involve monthly payments, so if you do not have any income, you obviously will not be able to honor this type of agreement and, therefore, cannot file for a Chapter 13 bankruptcy.

On the other hand, you might be eligible for a Chapter 7 bankruptcy if you are unemployed. To qualify, you must pass the means test, which is designed to ensure you do not have enough disposable income to fund the repayment plan associated with a Chapter 13 bankruptcy. Assuming your average income during the six months prior to your filing date is less than the median income in the state, you will pass the test.

Of course, if you have only recently lost your job, you will likely fail the means test and be unable to file, so it would be best to postpone it and file your Chapter 7 bankruptcy only after you are certain your average income from the six previous months is below the state median’s average. Make sure you consult with a skilled bankruptcy attorney to fully understand what to expect and how to smoothly navigate the process.

Bankruptcy Attorneys in Brevard County

No one should have to suffer the stress and frustration that comes with financial difficulties. Options are available to help relieve you of this burden and the Brevard County bankruptcy attorneys at The Buchalter Law Group will help you choose the best one for your situation. We have more than 35 years of experience in helping thousands of individuals file for bankruptcy.

Contact our office today at (321) 320-6088 to request a free case evaluation with a knowledgeable member of our team.

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