Ask a Monterey Park Bankruptcy Attorney: Filing Bankruptcy When Unemployed
As a Monterey Park Bankruptcy Attorney, many clients contact us after losing their jobs. Being unemployed makes it impossible for you to stay on top of all your monthly necessary expenses and bills. When this happens most clients understandably stop paying their debts.
Paying things like for your house, food and utilities are more important than paying credit cards. You need to make sure you have what is necessary to live first. Hopefully unemployment checks are enough to do so.
Many clients who are unemployed contact bankruptcy attorneys to help deal with their debts while they try to get back to a financially stable position. Contact a local Monterey Park Bankruptcy Attorney, today for assistance.
Can I File for Bankruptcy If I Am Unemployed?
People who are unemployed can file for bankruptcy. A Monterey Park Bankruptcy Attorney,y will assist you in walking you through the entire legal process.
Varying Forms of Bankruptcy One May Qualify For
The two most common bankruptcies are Chapter 7 and Chapter 13. If you are unemployed, you most likely will qualify for Chapter 7. However, you need to talk with an experienced bankruptcy attorney to make sure. Chapter 7 is also referred to as liquidation because the court will review your assets and determine if the bankruptcy trustee can sell your property to pay your creditors. Speak with your local bankruptcy attorney to find out the legal ways to protect your property from the bankruptcy trustee.
In most cases, debtors will receive a discharge without any liquidation. However, you must qualify for Chapter 7. The less money you make, the more likely it is that your Chapter 7 bankruptcy will be approved. Your unsecured debts will be wiped out in a Chapter 7 bankruptcy filing. On the other hand, to keep property, such as a car or home, that has a loan secured on it, you must continue making those payments.
How to Qualify for Chapter 13
The other form of bankruptcy is called Chapter 13. A Chapter 13 Bankruptcy is a where you and your bankruptcy attorney will set up a plan payment. It allows you to list all your debts and make a plan for what you are going to pay on a monthly basis. Many clients want to file Chapter 13 to protect their assets.
To qualify for a Chapter 13, you need to make enough money each month to support a plan payment. A judge will decide whether or not you can. If a judge feels, that because of your unemployment, you will not be able to keep up with your monthly obligations, your Chapter 13 will not be approved. However, that does not preclude you from converting your case to a Chapter 7 and very often. In most cases, this is better for someone who is unemployed anyway.
Each situation is unique, so we will let you know what is possible after examining yours. With this plan, your creditors will receive a portion of what you owe but not all of it. You will make one monthly payment and the funds will be dispersed to your creditors for a set number of years. Once complete, your bankruptcy will be discharged and you will be free from that agreement.
To find out which type of bankruptcy you should file for, call our office and schedule an appointment with a Monterey Park bankruptcy attorney.