More government employees eligible to choose chapter 7

Many governmental entities across the country, at both the state and local level, are struggling to balance their budgets after the economic crisis.  In an attempt to  balance budgets, many government workers are experiencing salary deductions, higher costing benefits, and wage freezes.

Previously, many public workers were unable to qualify for chapter 7 bankruptcy because their salaries were too high.  However, with these salary deductions, this no longer seems to be the case.  “Traditionally, public employees were not eligible for Chapter 7 Bankruptcy due to the fact that they had good salaries and typically didn’t have to pay much toward their benefits … In the current fiscal crisis, that is changin,” said one bankruptcy expert.

If you or someone you know has questions about chapter 7 bankruptcy eligibility, contact the Birmingham chapter 7 bankruptcy attorneys of Greenway Bankruptcy Law, LLC at (205) 324-4000 to learn more about the process today.

Paula GreenwayPaula Greenway

Paula Greenway is a native of Birmingham and has focused her practice on consumer bankruptcy since 1996. She is licensed to practice law in all jurisdictions throughout the State of Alabama. Paula has handled over 5,000 bankruptcy cases ranging in complexity throughout her career and prides herself on being able to come up with creative solutions to her clients’ financial issues.