If you are unemployed and having a hard time finding work for several months, chances are you have bills to pay off. Filing for bankruptcy might help your situation. Filing for bankruptcy will eliminate most unsecured debt, like personal loans, medical bills, and credit card debt. Moreover, it will be able to halt the exasperating calls of debt collectors and other forms of collection activities of creditors. If you cannot wipe out your obligations, you can at least restructure them so that you can repay your creditors through an affordable repayment plan.
There are different types of bankruptcy. The two main types of personal bankruptcy are Chapter 7 and Chapter 13. Chapter 7 bankruptcy is probably a more suitable option for someone who is unemployed. A Chapter 13 bankruptcy will require you to repay your creditors in a three- or five-year repayment plan. Because this involves making monthly payments, this would be hard to do for anyone who does not have a regular income. Chapter 7, on the other hand, will discharge all if not most of your obligation on a debt.
But not everyone can file for Chapter 7 bankruptcy. There is an income requirement to receive a bankruptcy discharge. You need to either generate income that is equal or lower than your state median income or pass a means test. If you do not have any money coming in, you will be eligible.
Chapter 7 bankruptcy proceeding involves liquidation of non-exempt assets. A bankruptcy trustee distributes the proceeds to your creditors. When filing for Chapter 7, there is a lot of paperwork involved. Normally, you have to declare all your debts and assets. It is very important to state everything in your bankruptcy petition and not attempt to make a non-exempt asset appear to be an exempt asset as this could lead to a dismissal of your case. You also need to guarantors and creditors. These are only a few of the many financial information required in the filing. The case will be heard in a bankruptcy court. All of your creditors will be given a chance to file an objection. The court-appointed bankruptcy trustee has the authority sell the assets and give the proceeds to your creditors. Any remaining debt after the liquidation is then discharged by the court. Once you receive a bankruptcy discharge order, you will no longer be liable to pay the creditors that have been included in the bankruptcy.
If you are unemployed and considering filing bankruptcy you should seek advice from an experienced San Antonio Bankruptcy Attorney as soon as possible time. The attorney will be able to explain your options and also help to make sure that you will adhere to the correct procedures and receive a debt discharge at the earliest opportunity. If you recently lost your job it will probably be the better to wait and file your Chapter 7 bankruptcy case after your average income within the past 6months is lower that your state median.