Suppose you are currently without a job and are contemplating filing for bankruptcy in California. In that case, it is essential to consider several factors that can impact the success of your bankruptcy filing. As an unemployed individual, you may be dealing with limited financial resources, which makes filing for bankruptcy an attractive option. However, certain courts may view unemployment compensation as a type of income rather than being excluded as social security income. Therefore, it is advisable to seek the assistance of a skilled bankruptcy lawyer in California from Winterbotham Parham Teeple, a PC who can help you determine the most suitable course of action.
The main point to consider is whether the court handling your bankruptcy case will prioritize Federal laws implemented by Congress or take a more individualized approach based on the intention of the legislation. It is highly recommended that you seek legal advice by calling us at 800.400.9000 to explore your choices in California.
Filing Chapter 7
When filing for Chapter 7 bankruptcy, you can retain particular possessions that have been identified as “exempt.” However, any assets that are not exempt will be sold off to reimburse creditors, as no repayment plan is required, as with Chapter 13 bankruptcies. Fortunately, being unemployed can work in your favor when filing for Chapter 7 bankruptcy in California, as there is no requirement to have a job or income to be eligible.
If you currently receive unemployment benefits, this income will be considered along with any other income you have earned in the last six months before filing for bankruptcy. It is important to note that the court will use a means test to determine your eligibility for a Chapter 7 bankruptcy and evaluate your ability to repay your creditors. Sometimes, the additional income from unemployment benefits may make you ineligible for Chapter 7 bankruptcy. Therefore, it is highly recommended to seek the guidance of an experienced bankruptcy attorney in Los Angeles to assist you in determining the best course of action when filing for bankruptcy in California.
Things To Consider For Filing Chapter 13
Although it is technically possible to file for Chapter 13 bankruptcy in California without a job, unemployment may negatively impact the outcome’s success. This type of bankruptcy allows debtors to repay their debts over a period of three to five years while still being able to keep their homes and other assets. However, for some people, Chapter 13 may not be the best option as their limited income from unemployment, rental, and social security benefits will be used to make monthly payments to the bankruptcy trustee. To qualify for Chapter 13, the debtor must prove to the court that they have sufficient income to afford the repayment plan.
Seek Legal Help
Before making a decision that will impact your life, always seek experienced legal advice from a trusted bankruptcy attorney in California. Call Winterbotham Parham Teeple, a PC at 800.400.9000 and get the help you need today.