Can Unemployed People File for Bankruptcy?
By Larry Hercules | Published on August 29, 2011 | 0 Comments
Unemployment is a serious problem for millions of American families, many of whom can no longer afford to pay their bills each month. For these people bankruptcy can quickly become an attractive option.
According to Larry K. Hercules, a bankruptcy lawyer in Plano, TX, Chapter 7 may be an option for unemployed individuals. By filing for Chapter 7 bankruptcy, debtors can walk away from their liabilities free and clear.
The only drawback to a Chapter 7 bankruptcy is that debtors will have to give back any assets that they cannot afford to keep. A person who does not have enough income to continue making his car payments every month, for example, will have to give his car back to the lender if he cannot keep up with monthly payments.
Chapter 7 lawyer in Plano, Hercules explains that the decision of which type of bankruptcy to file for is already made for most people. If a person makes too much money, then he or she cannot file for Chapter 7 bankruptcy even if that seems like the most attractive option.
A high percentage of the people who call Hercules’ office in Plano say that they are upside down or drowning in debt. These financial worries are causing them to lose sleep at night, and they are desperate to file a Chapter 7 bankruptcy in order to get a fresh financial start. Unfortunately, Hercules says concerning Chapter 7 lawyer in Plano there is a lot of misinformation when it comes to bankruptcy. Many people think that they will be able to keep their houses or their cars if they file for a Chapter 7 bankruptcy.
Although a debtor can technically keep his home or vehicle during a Chapter 7 bankruptcy if he agrees to reaffirm the debt and continue making payments on it, Hercules cautions that most people who are in deep enough financial trouble to qualify for a Chapter 7 cannot afford to keep their most expensive assets.
A person who was earning $3,000 or $4,000 a month before getting laid off cannot usually afford to keep making the same monthly mortgage payments on a $1,700 unemployment check. Thus, this person’s only option would be to give up his house and look for a fresh start with a Chapter 7 bankruptcy.
Filing for bankruptcy can be a long, and sometimes expensive process. However, that does not mean that unemployed individuals cannot file. On the contrary, the Plano lawyer says Chapter 7 bankruptcy is an excellent option for people who have lost their jobs and are looking for a great way to get a new lease on life.
in Plano, TX
Plano,
TX
75093
Phone: 972-964-9757
*Disclaimer: This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.