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Should you file bankruptcy if you lose your job?
That depends on where you lost it! Google Bobcat Goldthwaite “I lost my job. No, I didn’t really lose my job. I know it is still there.. It’s just, when I go there, there’s this new guy doing it!” https://www.youtube.com/watch?v=rITk6utJvRY
There are over 50 ways to lose your job. Here’s the most popular, and if you should consider filing bankruptcy:
· I got fired yesterday
NO. Don’t call us if you got fired yesterday. Chill.
· I am on unemployment
· I got hurt on the job
Maybe. You need expert advice if hurt on job!
· Accident not at work
Maybe. Depends on a lot of factors
· Short term disability
Probably best to wait.
· Long term disability
Maybe, if permanent and income loss permanent.
· I will be getting back to work
Maybe. Is pay going to be higher, lower or same?
So, it really depends on why you are not working, will it be temporary or permanent, and also on exactly what kind of debt problem you have. For example:
Hurt on job? We file a lot of Chapter 7 cases to eliminate debt when there is a workers compensation claim. We can represent you in the Workers Comp claim, and also in either a Chapter 7 or 13 bankruptcy, and make sure you keep 100% of your workers comp settlement, while you eliminate or manage your other bills.
Just got fired? We recommend that you WAIT until you get back to work. Apply for unemployment, and get back to work. Don’t panic. Pay your regular living expenses, don’t pay any creditors until you get back to work. They can’t garnish your paycheck, can they? When you get back to work, we can see if Chapter 7 or 13 will manage your debt.
While you are unemployed, you can file a Chapter 7 case, but you are prohibited from filing under Chapter 13 unless you have a regular source of income.
It may be to your benefit, especially if you usually earn $45,000 yearly, or more, to file a Chapter 7 before you get back to work. This is because there is an income test in Chapter 7 cases, meaning you can have too much income to do a Chapter 7. This usually comes into play over $45,000, in urban areas like Chicago. If you are not a higher income person, this timing is not so important.
But, you may not want to not file a Chapter 7 case unless you are already back to work, for several reasons. First, your bad luck may not be at an end. If you are out of work, you probably don’t have medical insurance. If you become ill after you have filed a bankruptcy, and run up a bunch of medical bills, you will have to pay them, because you will have used up your chance to do a bankruptcy already. Secondly, if you are not working, your money is short, and if you fall behind in your rent or utilities, or your car insurance lapses because you didn’t pay it and you wreck your car, you will have already used up your 6 year chance to file a bankruptcy and start fresh. Thirdly, when you aren’t working, no one can garnish your wages, and you probably don’t have any savings that they can attach, so what is the point of doing a bankruptcy until you are back to work?
The reason for doing a bankruptcy is to get a start fresh. You cannot start fresh if you are still out of a job. Once you return to work, a bankruptcy can be filed in as little as one day, to protect you from creditors, so wait until you are back to work to worry about getting rid of your bills. You may run up some more before that happens/ Or there may be a reason to file now!
Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com. Bankruptcy laws are in place to help you. Who knows bankruptcy like Geraci Law? Geraci Law has 30,000 5-star reviews since November 2016!
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