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Is bankruptcy an option if I'm unemployed? Too Much Debt and No Job

Our Houston bankruptcy attorneys provide legal help to unemployed clients when filing for bankruptcy.

Like many hard-working people, you had a job and faithfully carried out your duties. Then through some unforeseen circumstance, you found yourself out of a job. You searched daily for employment, yet no one was hiring. You may have been able to manage for a period of time as you had some savings. Slowly but surely, however, the savings ran dry and you started using credit cards to live on and to pay urgent bills. Before you knew it, you are unable to pay some bills regularly, if at all. Now you are worried your car may be repossessed or the bank will foreclose on your home. You are so far behind now that even if you did get a job, it could be years before you are able to catch up.

At Westbrook Law Firm, PLLC, we’ve been helping hundreds of people get out from under crushing debt, whether due to loss of employment, an income didn’t keep up with inflation, or they were hit with an unexpected disaster such as a medical emergency. Finding the right solution is just one of our strong points. We can show you whether bankruptcy is the right decision, based upon your individual situation.

How will filing bankruptcy help me if I’m unemployed?

If you are unemployed and have a lot of debt, you might find that filing for Chapter 7 bankruptcy will help you. With Chapter 7, your unsecured debt, such as credit card, medical bills, payday loans, can be eliminated. The trustee will sell any non-exempt property you have (most people lose nothing), and the proceeds will go to paying those creditors. This type of bankruptcy is the most common, but you must qualify. You will need to demonstrate to the court that you have no disposable income. You will have to take a Means Test, which determines how your income compares to the income of similar households in the state. If your income is below this median, you will qualify. Even if you are on unemployment, you will probably qualify.

Chapter 13, on the other hand, allows debtors to reorganize their finances so that they can pay off their debts over a three- to five-year period. This type of bankruptcy protects your assets while helping you to catch up on past debt. You will need to show you have a steady income, plus some amount of disposable income. If you are unemployed, you may be able to show you have a steady source of income from unemployment benefits, social security or other sources that can be used to make restructured monthly payments. The court will not allow your bankruptcy petition unless you are able to show you have the ability to make payments.

Get Quality and Effective Legal Help for Handling Debt

We understand how stressful it is to have piles of debts you can’t pay, and to feel that there is no light at the end of the tunnel. Filing for bankruptcy is a possible solution with the goal of creating a new financial future, and could get you out of debt and able to make a fresh start. Contact us today.