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.