Unemployment is one of the most common reasons listed for filing personal bankruptcy as many as 2/3rd of the Americans list job-related financial stress as the contributing factor. Most of us don’t have six months worth of salary saved up, or even one or two months savings in case of emergencies. And in some cases without the safety net of unemployment benefits.
If you remain unemployed long enough filing bankruptcy may be the only option you have to keep your most important possessions until you can find work and get back on your feet.
If you have no income at all, and nothing coming up that will give you an income, bankruptcy will only hold off the inevitable loss of some of your assets.
Chapter 7 or Chapter 13 Bankruptcy
At the very least, bankruptcy will give you time to make decisions about your situation and reorganize your living situation. Chapter 7 may allow you to cancel debt quickly such as credit cards and medical bills. Chapter 13 lets you keep your most important property while making arrangements for past missed payments.
Income to Qualify for Bankruptcy
If you have been unemployed for a short time, you will have to report any income for the past six months. If the amount is too high, you will not pass the means test. If you are still unemployed after a few months, apply again since your income will be considerably less for the six months.
If you are unemployed, or underemployed and the creditors are calling you daily, consider talking to a qualified Cincinnati bankruptcy attorney to see what options you may have.