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What are my options for bankruptcy while unemployed?
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My company downsized, and I lost my job. What are my options for bankruptcy while unemployed?
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The status of unemployment is often considered a favorable one as relating to bankruptcy protection. Pursuant to the bankruptcy code, to qualify for Chapter 7 protection, a debtor's income has to be equal or less than the average income for his or her family size and situation. The court will order a debtor with an income above a specific threshold to enter into a repayment plan with lenders. Besides small unemployment compensation from the government, an unemployed individual has no income, and thefore has the option to file for Chapter 7 liquidation. By filing for chapter 7 bankruptcy, an unemployed debtor can elimiante debt without having to comply with a repayment plan. He will only have to pay for a counseling session and a bankruptcy lawyer.
Posted by Yara Zakharia on 12 May 2010
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