The bankruptcy courts take many things into consideration when they review your filing. One of these things is income. But what if you’re out of work? Does unemployment affect your claim? Bankruptcy attorney Sarah M. Tipton-Downie has the answers. Here are some important facts to know about unemployment and Chapter 7 bankruptcy.
First, let’s review what Chapter 7 bankruptcy is. Chapter 7 is primarily meant to help people who have lower incomes and few assets. It’s designed to take away medical expenses, credit card balances, and other unsecured debts. The people who are seeking payment usually don’t get repaid.
A bankruptcy attorney will conduct a test to see if you qualify for Chapter 7. Your income will be measured against the median income for a household of your size in your state. If your income falls below this median figure, you’ll automatically be eligible for Chapter 7 bankruptcy. Since you’re out of work, you probably have low or no income. In this case, being unemployed can actually help you meet the criteria for a Chapter 7 filing.
Of course, you should always consult with the experts before making any major decisions like these. Your local unemployment office can give you guidance on how bankruptcy may affect your claims there. But only trust a qualified bankruptcy attorney like Sarah M. Tipton-Downie to give you legal advice. The Law Office of Tipton-Downie has served the Vidalia, GA area for over 35 years. Trust our team to help you navigate this process. Call today for a consultation.