27th Feb 2017



You certainly do not need to be unemployed in order to qualify for bankruptcy, but if you are unemployed, it is not a problem in filing Chapter 7 bankruptcy.  Chapter 7 is the type of bankruptcy that discharges, or wipes out, your unsecured debts with the exception of student loans.  These dischargeable debts include credit cards, medical bills, unsecured loans, etc.  In order to qualify for Chapter 7, you must meet certain income guidelines.  Being unemployed will certainly help your chances to file Chapter 7, but it is not a requirement.


Chapter 13, on the other hand, is a payment plan type of bankruptcy.  If you are behind on a house or a car and want to keep those items, you can file a Chapter 13 payment plan type of bankruptcy to bring your payments current.  If that is the case, you do need to show some sort of income coming in to be able to afford your regular monthly living expenses in addition to the Chapter 13 plan payment.  Unemployment compensation can be used as income to support the Chapter 13 plan, if it is sufficient income to cover your needs and the plan payment in the case.


Job loss is one of the main reasons people file bankruptcy.  Do not be ashamed of being unemployed.  It happens to almost everyone at some point in our lives.  You can certainly file bankruptcy while being unemployed and achieve the end result of having your unsecured debts discharged.


If you want to discuss this topic further, please contact me at 281-847-4345 or rkemsley@kemsleylaw.com so we can discuss your individual situation and see if Chapter 7 or Chapter 13 would work for you.  The consultation is free and we will review your situation, determine whether you qualify to file and answer your questions.  Don’t put off your dreams and goals of becoming debt free.  Take the first step by calling me today.  I look forward to hearing from you soon.

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