Can I file bankruptcy if unemployed?
The world is facing a global issue which is the coronavirus epidemic. People are losing their jobs as many economies have gone down and still going down. People are losing their jobs and they are not able to cope up with their debt or even daily expenses. Employment has reduced and people are fearing how they can pay their debt or various other bills.
BLC Law Center wants to tell you that if anyone wants to choose bankruptcy to settle their debts then there is No bar to filing a Chapter 7 bankruptcy. A chapter 7 bankruptcy is the best way for you to let go of your debts and live life peacefully. While unemployment benefits are typically counted as “income” for purposes of qualifying for Chapter 7, that rarely results in an individual not qualifying. The much more likely result is that due to reduced income (from unemployment benefits or otherwise), it will be much easier to qualify for Chapter 7 bankruptcy protection. Chapter 7 is the best and most easy way to let go of your debt with the help of a San Diego bankruptcy attorney.
Advantages of filing chapter 7 bankruptcy
Chapter 7 bankruptcy is not for everyone and that you need to keep in mind. A person must quality in order to file bankruptcy under chapter 7, tests like income test is done. Also some people the debts can be discharged if they give up valuable nonexempt assets. As these can be sold by creditors.
Think carefully and accordingly choose a bankruptcy. Following are some advantages of chapter 7 bankruptcy read and make your mind accordingly:
You Receive a “Fresh Start”
Chapter 7 enables a person to start again in their life and make a fresh start to improve his or her conditions. You are free from liability and you don’t need to worry about other things. Keep in mind debts like student loans, child support, alimony is not dischargeable under chapter 7 bankruptcy. Certain liens on property, such as a mortgage, a tax lien, or a mechanic’s lien, also remain after the completion of Chapter 7 bankruptcy.
Keep Future Income with yourself
Any property or income you make after filing for bankruptcy under chapter 7 is all yours and it will be your asset and income. Thus in simple words, anything which you buy after filing for chapter 7 is all yours and no one can take it from you legally.
These forms of property acquired within 180 days after filing for Chapter 7 will become part of the bankruptcy estate:
- Property which you inherit
- Settlement agreement property
- Death benefits
- Life insurance returns
No limit on debt
Chapter 7 has no limit on your debt amount unlike chapter 13. Under Chapter 13, you cannot file for bankruptcy if secured or unsecured debt exceeds the debt limits.
No Debt Repayment Plan
Under Chapter 7, you do not have to repay debt in a court-approved repayment plan, unlike in a Chapter 13 bankruptcy. You are no longer responsible for repaying the debt after its discharge in Chapter 7.
Debts are discharged quickly
In less than 3 months mostly debts are discharged. The court issued a discharge order mostly after 60 to 90 days after filing bankruptcy. After the trustee distributes your property to unsecured creditors, the bankruptcy court will close the case.
Contact BLC Law Center anytime and get yourself the best San Diego bankruptcy attorney in the city. We are one the best attorneys and if you are also looking for the best then find a bankruptcy attorney with us.