Being unemployed is one of the main reasons people file personal bankruptcy. If you are lucky enough to get unemployment insurance, it often isn’t enough to cover your bills. It’s rare to find a person who has one month of salary saved, let alone the six months that some experts recommend — being unemployed causes most of us to get seriously behind in our bills. Filing for bankruptcy may be our only hope of saving our home or valuable assets until we can get back on solid financial ground.
Filing bankruptcy will give you an automatic stay, stopping any attempts to collect on your debt or legal actions being taken against you. The automatic stay gives you the time to decide on what type of bankruptcy would give you the most financial relief.
And if you were denied unemployment benefits and you have no income and no prospects of income, then bankruptcy may not be enough to help you keep your assets. The law states that your creditors must be satisfied.
Chapter 7, the elimination bankruptcy will probably be your best option if you have a lot of unsecured debt like credit cards and medical bills. You will not be able to file for Chapter 13 bankruptcy if you do not have a steady income source.
If you are unemployed or recently received a reduction of income, talk to a Cincinnati Bankruptcy attorney can help you choose the best course of action for you to save all or most of your assets and get a fresh financial start.