Debt can happen to even the most fiscally responsible person. Countless people throughout Salt Lake City live from paycheck to paycheck. The loss of a job can bring devastating results–especially when you are supporting a family, paying a mortgage or have huge medical bills. When faced with the reality of a possible foreclosure and constant calls from creditors, many people are forced file for bankruptcy to clear their debt and get a fresh new start on their finances. But can you file for bankruptcy while unemployed?
Evaluate Your Situation
The decision to file for bankruptcy is not easy. There are several factors to take into consideration. If you have been unemployed for a long period of time, it can get even more complicated. If you are able to find temporary work or have good prospects of finding employment, it can be a very good option. However, if you have very little to no prospects of finding work soon, you may be able to file for Chapter 7 bankruptcy if creditors are able to take some of your property. But if you have little to no assets, it may be best to skip the process altogether. To get a proper evaluation of your debt situation, it is always best to consult with a Salt Lake City bankruptcy attorney before you begin the process.
Chapter 7 vs Chapter 13
There are several myths about bankruptcy. Many see it as a sign of failure. But that is hardly the case. Some of the most successful people in American history have filed for bankruptcy, including Abraham Lincoln, Walt Disney, and even current President Donald Trump. And many have recovered from the overwhelming debt problems better than ever before. Bankruptcy is a legal remedy which allows people to pay off some or all of their debt under the protection of the federal bankruptcy court. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy is often known as personal or consumer bankruptcy. It involves paying off debt by liquidating assets. During the process, the court will appoint a trustee who will be in charge of liquidating the assets. These assets typically involve a portion of the property, which is used to pay off unsecured debt, such as medical debt or credit card debt. You will be able to keep any property that is considered that is considered exempt by federal and state laws, such as clothes, furniture or cars. If you are unemployed, filing for Chapter 7 bankruptcy can be an effective option.
It is important to understand not everyone is eligible to file for Chapter 7 bankruptcy in Salt Lake City. You must pass a means test, which indicates your ability to pay off debt based on your disposable income. Those who have enough income may be eligible for Chapter 13, which allows people to pay off their debt through a payment plan. However, it can be an extremely time-consuming process, which can sometimes take years. Chapter 7 bankruptcy is usually much quicker. The process usually averages between three to six months.
Are You Struggling With Overwhelming Debt? Salt Lake City Bankruptcy Attorney Justin M Myers Can Help
Far too many people throughout Utah live with crippling debt. The loss of a job, a divorce or huge medical bills can place anyone in a difficult financial position. In many cases, filing for bankruptcy is the best solution. Over the years, Salt Lake City Justin M. Myers has helped clients recover from overwhelming debt and get a fresh start on their finances. Whether you are facing a foreclosure or a wage garnishment, he and his legal team work diligently in the courtroom and behind the scenes to help place each client in the best position to succeed. To learn more, contact his Salt Lake City law office today and schedule a free initial consultation to discuss your case.