Filing for bankruptcy is always a tough decision, especially when struggling to stay afloat financially. Many debtors do not understand when they can and cannot file. One of the common questions bankruptcy attorneys hear from debtors is, “Can I file bankruptcy when I do not have a job?“
There are different rules for each type of bankruptcy when it comes to filing for bankruptcy when you do not have a job. Our Bay Area bankruptcy attorney at the Law Offices of Melanie Tavare can review your particular situation and help you understand your debt relief options, regardless of whether you do or do not have a job.
Chapter 7 bankruptcy is a type of bankruptcy that can help you wipe out most of your debts. If you do not have a job, you can still file for Chapter 7 bankruptcy, but you will need to meet certain requirements. Firstly, you will need to pass a means test. The means test will determine whether you have enough income to pay off your debt. If you do not have enough income, you will pass the test and be eligible for Chapter 7 bankruptcy.
Once you have passed the means test, you will need to complete a credit counseling course within 180 days before filing for bankruptcy, according to the U.S. Department of Justice. After completing the course, you can start the process by preparing and filing a petition with the court. A trustee will be appointed to your case whose job is to review your assets and debts and ensure that the bankruptcy process is carried out smoothly.
Chapter 13 bankruptcy is a type of bankruptcy that is designed for individuals who have a regular income and want to pay off their debts over time. If you do not have a job, it may be more challenging to file for Chapter 13 bankruptcy. That’s because, with Chapter 13 bankruptcy, you will need to create a repayment plan that takes into consideration your income and expenses.
If you do not have a job, your repayment plan will be adjusted to fit your situation. For instance, you may need to create a plan that involves making smaller payments over a longer period, or you may need to wait until you are employed again before making any payments. Ultimately, your bankruptcy attorney will work with you to create a repayment plan that works for your unique situation.
Generally, it is possible to file bankruptcy even if you are not currently employed. Regardless of which type of bankruptcy you choose, it is important to work with an experienced bankruptcy attorney who can guide you through the process and ensure that everything is handled professionally and legally.
If you are considering filing for bankruptcy but do not have a job, reach out to the Law Offices of Melanie Tavare to get a case review and learn more about your options. Call 510-255-4646 today.
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