Bankruptcy is a financial tool that provides relief for people who need to get rid of debt but may not have adequate income to do so. Both individuals and married couples can file for Chapter 7 or Chapter 13 bankruptcy. You can also file if you are currently unemployed. If you’re a Louisiana resident, here are some essential things to know before you file.
Filing for bankruptcy without a job
Your employment status does not determine whether or not you can file for bankruptcy. As a matter of fact, being unemployed is the reason that many people choose bankruptcy. If you don’t have income at the moment, you will likely need debt relief. If you’re not sure how to file or don’t know whether this financial move is right for you, you may want to seek advice to figure out which steps you should take.
Chapter 7 bankruptcy
Before you file for Chapter 7 bankruptcy, you need to make sure you qualify. If your income from the last six months is lower than the median income for the size of your family in your state you are automatically qualified. You can also take the means test if your income is higher than the bankruptcy threshold amount to show that your monthly financial obligations don’t leave much money for you to pay off your debts. However, if you currently don’t have income, you likely won’t be required to take the means test.
Filing for Chapter 7 while you are unemployed helps you to get rid of most of your unsecured debt and find the financial relief you and your family need while you’re in between jobs. Speaking with a financial advisor can help you decide if Chapter 7 is right for you.