Are you unemployed? Are you weighed down by debt? If you answered yes to these questions, you may immediately turn your efforts towards bankruptcy. While this is the right choice for some people, especially since they are out of work, you shouldn’t consider this your only option.
Are you Seeking Employment?
The answer to this question could determine when or if you move forward with bankruptcy. If you have some property with which you can pay creditors, and you don’t expect to get a job in the near future, bankruptcy could be the right choice.
On the flipside, if you don’t have anything in terms of assets, you could be best off sitting back for the time being. Since your debt will continue to mount, there is no point in rushing forward. Remember, you can only file for bankruptcy so many times within a particular period of time.
Filing for Bankruptcy then Getting a Job
You never know what the future holds, so there is a chance you could file for bankruptcy just to find yourself landing a job shortly thereafter.
If you file for Chapter 7 and then find a job, this does not typically lead to a denial of discharge. With Chapter 13, things are treated differently. The change in income, now that you are employed, will likely result in an adjustment to your repayment plan.
Should you Hold Off?
With so much going on with your unemployment, you may not feel comfortable adding more stress by way of bankruptcy. If Chapter 7 or Chapter 13 is not in the cards, there are other options to consider:
- Negotiate with creditors with hopes of reaching a settlement.
- Refinance your home to avoid foreclosure and lower your monthly mortgage payment.
- Get the help of a consumer credit counseling service.
Losing your job can be frustrating, especially if you are already in a bad spot with a large amount of debt. While it is your right to file for bankruptcy while unemployed, you have to know what this will do to your situation now as well as if you secure a job in the future.