CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can You File for Bankruptcy When You’re Unemployed?

Can You File Bankruptcy With No Job Tampa, Florida.Can You File for Bankruptcy with No Job?

Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because of unemployment, you face two battles. Dealing with bankruptcy and unemployment is overwhelming, but can you file bankruptcy with no job?

It’s difficult to catch up on debt when you have a steady income. But when there is no money coming in each week or month, chipping away at a large debt is all but impossible.

Can filing for bankruptcy help you if you’re in debt and unemployed?

Maybe.

Some Types of Bankruptcy Require Income

First, it’s important to understand there are very few rules regarding bankruptcy and unemployment. The only significant rule is that you are likely ineligible for Chapter 13 bankruptcy if you are unemployed. Chapter 13, sometimes known as wage earners’ bankruptcy, requires an income. Unless you’ve found a way to earn money that doesn’t involve work or a job, chances are Chapter 13 bankruptcy is off the table for you.

On the flip-side, some people are ineligible for Chapter 7 bankruptcy if they recently lost a job that paid them high wages. In some cases, you’ll need to wait to file because you have money to pay certain debts and those debts probably won’t be discharged in bankruptcy. The average income earner, even if they lose their job, will have other options for dealing with their debt – at least in the immediate future.

What Should You Know About Bankruptcy and Unemployment

So, aside from these general “rules” about bankruptcy and unemployment, what should you know?

There are a few factors that influence your bankruptcy case when you’re unemployed, including:

  • Length of unemployment
  • Earnings at your previous job
  • Prospects of finding a job in the near future
  • Other sources of income

These factors play a role in whether or not you will pass the means test. As mentioned earlier, if you were recently a high-income earner, chances are you won’t qualify for Chapter 7.

No bankruptcy court is going to look at someone who was recently earning a great deal of money and just discharge their debts. The court assesses your average income over the past six months. If it includes high wages, it’s going to hurt your chances of qualifying. The means test is one of the tools used to determine if you qualify for Chapter 7 or Chapter 13.

The best thing you can do if you want to file for Chapter 7 but your recent income disqualifies you is to wait. About six months from now, if you don’t find another job, you’re likely to qualify for debt discharge.

If you can’t wait or you know you’ll find a job within the next six months that will disqualify you, your best option is to file for Chapter 13. The problem you’ll encounter is that Chapter 13 requires you show an ability to meet payment obligations. You must have some type of income to qualify for Chapter 13.

However, that source of income doesn’t have to come from your job. It must be verifiable, but that doesn’t mean it has to be traditional employment. It could be rental income or income from a court settlement or even your unemployment benefits.

As long as you’re able to show you’ll have the income needed to meet payment obligations, you’ll qualify for Chapter 13 bankruptcy. Bankruptcy and unemployment can work, you just need to know how to deal with your specific situation.

Is Bankruptcy Right for Me?

How do you know if you can file for bankruptcy with no job? In addition to your unsettled job situation, you’re also facing a stressful financial situation. Life can feel overwhelming in this situation.

The important thing to remember is that you are not alone. Other people are dealing with challenges similar to your own. There is also expert guidance available to help you make your decision.

For more information or to speak to someone about your options if debt is a problem during unemployment, contact the Law Office of Robert M. Geller at 813-254-5696 to learn more.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Will Filing Bankruptcy Stop Eviction?

Are you struggling with an eviction notice and don’t know where to turn? You may be wondering if filing for...
Read More

Will Filing Bankruptcy Affect My Social Security Disability?

For those who receive Social Security Disability (SSD) benefits, filing for bankruptcy can be a tricky situation. The goal of...
Read More

Will Bankruptcy Affect My Citizenship Application?

Applying for US citizenship can be a long and complex process. One of the factors that the United States Citizenship...
Read More

What Does It Cost to File Bankruptcy in Florida?

If you are considering filing for bankruptcy in Florida, there is a lot to consider. From understanding what type of...
Read More

Why Should You Consider Bankruptcy in 2023?

With the New Year upon us, it’s important to consider all of your options for getting out of debt. Bankruptcy...
Read More

Can You Keep Bankruptcy a Secret?

Considering bankruptcy is a difficult decision, and it can be a lonely one. You may feel like you’re the only...
Read More

How Will Filing for Bankruptcy Affect My Loved Ones?

Filing for bankruptcy is a serious decision and not one that should be taken lightly. You'll likely wonder will bankruptcy...
Read More

Can I Spend Money If I’m Planning to File for Bankruptcy?

When you’re considering filing for bankruptcy, it can be hard to know the right course of action. One of the...
Read More

What to Do Now If You Intend to File for Bankruptcy Next Year

If you intend to file for bankruptcy in the New Year, there are certain steps you must take to ensure...
Read More

5 Lessons You’ll Learn from Filing for Bankruptcy

Looking for a bankruptcy lesson plan? Here are five things you can learn from filing for bankruptcy. Filing for bankruptcy...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions