If you’re working hard to tackle financial difficulties that have gotten out of hand, a bankruptcy attorney Santee in CA could, depending on your specific case, recommend filing one of the available bankruptcy plans.
However, it’s understandable if the thought of declaring bankruptcy without a steady income concerns you. To make sure you’re well informed and prepared to make this decision, read on and take notes as we analyze the situation and outline potential solutions that would work best.
Can I file bankruptcy with no job?
Filing for bankruptcy when on active military duty can be a complicated process, and most people wonder how bankruptcy can affect their careers. However, is it safe, or even possible, to declare bankruptcy if you don’t have a job in the first place?
The good news is you don’t have to be employed to file for a chosen bankruptcy plan. However, your income may dictate the choice you’ll have to make between filing for Chapter 7 or Chapter 13 plan.
What is the income limit for Chapter 7?
In order to qualify for Chapter 7 plan, your disposable income must pass a means test first. This test is going to compare your average monthly income for the period of 6 months before your bankruptcy with the median income of a similar household in your state.
If you are unemployed and have little or no income at all, you can qualify for Chapter 7 bankruptcy more easily than if you had a steady, well-paying job. This is the reason why most unemployed debtors choose to file for Chapter 7 bankruptcy to eliminate their unsecured debts.
Is it better to file a Chapter 7 or 13?
Chapter 13 bankruptcy requires that you propose a plan to pay back a share of your debts to a bankruptcy trustee. This debt repayment must come in the form of monthly installments which have to be equally distributed over the next three to five years.
Filing for Chapter 13 without a steady income isn’t a typical practice, but if you are trying to save your estate or car or you’re looking to pay back high priority obligations such as recent taxes or child support, filing for Chapter 13 bankruptcy can be a good choice.
Furthermore, unemployment can reduce the amount you’ll have to pay to your unsecured creditors, but the amount of your monthly plan payments also depends on your priority obligations, mortgages, and other secured debts.
Is choosing Chapter 13 a good call?
Many unemployed debtors schedule their first bankruptcy consultations with experienced legal experts in order to learn more about the Chapter 13 bankruptcy plan.
Some unemployed individuals have other sources of income, such as rental properties, pensions, retirement income, or social security or disability benefits. If you happen to have any of these, your income may be sufficient to afford a Chapter 13 repayment plan. However, your Chapter 13 case can be easily dismissed if you fail to prove you can afford to keep up with your mandatory monthly payments.
Seeking professional legal advice? Reach out to Santee bankruptcy experts
When it comes to contemplating bankruptcy, it’s important to remember that it’s always better to be safe than sorry. An experienced bankruptcy attorney in Santee, CA will provide the legal support you need in order to make a crucial decision that can change your life. The law experts Chang & Diamond are here to help you stay on top of the situation.
Don’t risk your financial future trying to deal with the situation on your own. Contact the professionals who have decades of experience under their belts, and take some time to unwind in the Mission Trails Regional Park. Reach out to us today and get ready for your first consultation meeting.