Choosing to file for bankruptcy can be a difficult decision, and there are several factors that should be considered before making this decision. One of these factors regards unemployment and the affect it has on the bankruptcy process.
There is a repayment plan associated with Chapter 13 bankruptcy that may not be achievable if an individual is not earning an income. When an unemployed individual is looking to file for bankruptcy protection, Chapter 7 bankruptcy may be their best option. This form of bankruptcy allows for that individual to bypass a repayment plan, and discharge their debts at a more rapid pace through the process of liquidation.
If a person was employed when they filed for bankruptcy, but has since become unemployed, they may want to consider transferring from Chapter 13 bankruptcy protection to Chapter 7 bankruptcy protection due to the fact that their employment status may no longer allow them to continue to make payments through the repayment plan option associated with Chapter 13 bankruptcy. The transferring process can be a confusing one, and therefore it is important to consult with a knowledgeable bankruptcy attorney.
If you are unemployed and considering filing for bankruptcy, please contact the bankruptcy lawyers of Greenway Bankruptcy Law, LLC by calling (205) 324-4000 today.