Stanley J. Kakol Jr. holds a law degree from the University of Richmond School of Law in Richmond, Virginia. As the owner of The Law Offices of Stanley J. Kakol, Jr., LLC, in Lithonia, Georgia, Stanley J. Kakol Jr. guides his clients in the area of bankruptcy.
The ability to file for bankruptcy is not dependent on the filer's work situation. Unemployment is a common reason for filing bankruptcy. They can file bankruptcy without having any money or assets. Unemployment certainly counts as a condition in which debt relief is required. After all, it is probably the reason for failing to pay the medical bills or credit cards on time.
The filer must first prove that they are eligible to file a Chapter 7 bankruptcy. If the current monthly income (CMI) is less than the family's median income in the filer's state during the past six months, they are automatically eligible.
However, when the filer adds in a few months of no income or the normally considerably reduced unemployment income, the amount they get is likely to be less than the limits of Chapter 7 income. Suppose the income is more than the threshold amount. In that case, the filer may qualify for Chapter 7 by completing a more detailed calculation, known as a means test, demonstrating that the recurring monthly payments and responsibilities leave little to no money at the end of the month to pay medical or credit card bills. The filer won’t have to do the whole means test calculation if they are jobless and there are no other sources of income in the family.
When the filer is jobless, filing Chapter 7 can offer a number of advantages. It will provide them with immediate financial relief by eliminating the unsecured debts and the risk of wage garnishment when they return to work.
The ability to file for bankruptcy is not dependent on the filer's work situation. Unemployment is a common reason for filing bankruptcy. They can file bankruptcy without having any money or assets. Unemployment certainly counts as a condition in which debt relief is required. After all, it is probably the reason for failing to pay the medical bills or credit cards on time.
The filer must first prove that they are eligible to file a Chapter 7 bankruptcy. If the current monthly income (CMI) is less than the family's median income in the filer's state during the past six months, they are automatically eligible.
However, when the filer adds in a few months of no income or the normally considerably reduced unemployment income, the amount they get is likely to be less than the limits of Chapter 7 income. Suppose the income is more than the threshold amount. In that case, the filer may qualify for Chapter 7 by completing a more detailed calculation, known as a means test, demonstrating that the recurring monthly payments and responsibilities leave little to no money at the end of the month to pay medical or credit card bills. The filer won’t have to do the whole means test calculation if they are jobless and there are no other sources of income in the family.
When the filer is jobless, filing Chapter 7 can offer a number of advantages. It will provide them with immediate financial relief by eliminating the unsecured debts and the risk of wage garnishment when they return to work.
