Becoming unemployed, or a cutback in hours, is one of the top reasons why many people file for bankruptcy. Being unemployed without a steady source of income is a tough situation for anyone. By law, you do not have to be employed to file for bankruptcy. However, if you are unemployed your job status can affect the outcome of your bankruptcy. Continue reading
It is not uncommon for an individual to file bankruptcy, and then need to refile at a later date. For instance, your plan payment under a Chapter 13 bankruptcy (a reorganization) may have been too large. Or you may have additional unforeseen circumstances such as reduced income that caused you to become dependent on credit.
The point of filing a Chapter 7 bankruptcy is to wipe out your debts. In most Chapter 7 bankruptcy cases, debts are discharged at the end of the bankruptcy. In some cases, creditors or the bankruptcy trustee can challenge whether a particular debt can be discharged, or even whether all of your debts can be discharged in bankruptcy. These are called objections to discharge.
That’s not exactly the way the process works. By law, if you owe a debt that has not been paid, such as a credit card debt, student loan debt, or unpaid medical debt, and you have assets, those assets can be taken to pay your unpaid bills. However, this process is not an automatic one. There are many legal steps that have to happen before your house or your car could be taken.