Filing for bankruptcy is not the solution for everyone, but if you are one of the millions of people who lost their job due to coronavirus, exploring your options and consulting with a Chapter 7 bankruptcy attorney could mean the difference in your financial future.
I’m Unemployed – Do I Even Qualify for Chapter 7 Bankruptcy?
To qualify for a Chapter 7 bankruptcy filing, everyone must pass the means test. The means test looks at the last six months of your average income before the filing, and if that income is below the average for a family of your size in the state, you will qualify. So, in this case, being unemployed will make it easier to qualify for Chapter 7 bankruptcy.
It’s important to also ask yourself whether you anticipate more debt to accumulate before you secure new employment, in which case it might be better to wait to file until you can eliminate more debt. Also consider whether new employment would make you ineligible based on your income, despite the mountain of debt, because it may be better to go ahead and file while you are unemployed so you can qualify and start to have your debt reduced.
Do not make the decision to file for bankruptcy before you analyze whether you expect to incur more debt and the worst is behind you, because filers can only receive a Chapter 7 discharge of debt once every eight years. Additionally, only debts owed before you file are eligible to be erased.
What Happens to Assets and Can a Chapter 7 Bankruptcy Lawyer Help Me Keep Them?
When you file for Chapter 7 bankruptcy after being laid off due to the coronavirus, ideally this means your unsecured debts are eliminated or wiped away. These include things like medical bills, personal loans, credit cards, etc. – things to which you have not assigned personal property as collateral.
On the other hand, you are responsible for the debts involving secured assets or collateral, like your car or home if you choose to keep them. Otherwise, they can also be surrendered and ultimately discharged.
Chapter 7 bankruptcy is a unique opportunity to get back on your feet after a coronavirus layoff. Your unsecured and surrendered debts are discharged, eliminating the mountain of payments that seems impossible to escape from under.
Plenty of Room for Error – Call a Professional Chapter 7 Attorney
There are many different moving parts, and a variety of different considerations to keep in mind when considering filing for bankruptcy. A skilled Chapter 7 attorney with CMC Law will be able to assess your situation, debts and creditor requirements, and eligibility for solutions.
If you are like the many Americans across the U.S. struggling to pay your bills after being laid off due to the coronavirus, give our bankruptcy attorneys a call. We’re here to help you get back on your feet! Reach out by phone at (404) 585-0040 or online via our contact form to schedule a call with your Chapter 7 attorney today.
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