Many people across the United States have a significant amount of debt. While this is never a good situation to be in, it is nothing to be ashamed of. It’s common for those who live from paycheck to paycheck to accumulate significant amounts of debt through the use of credit cards. It may be possible to keep up with credit card minimum payments when you have a steady job, but if you suddenly become unemployed and have no savings, you may find yourself in a complicated financial situation very quickly.
Being made unemployed when you have a huge amount of debt and no savings could mean that you quickly face eviction from your home. You’ll likely also have letters from creditors demanding that you keep up with your debt repayments. This can be a very stressful situation to be in. Fortunately, filing for Chapter 7 bankruptcy could help you to get back on track.
How can Chapter 7 bankruptcy help an unemployed person
The eligibility requirements for Chapter 7 bankruptcy does not require a minimum income. In fact, those with a good income may not be able to file for Chapter 7 bankruptcy. This bankruptcy chapter uses a debtor’s assets to help pay back their debts. Any debts that remain after all assets have been liquidated are likely to be discharged. Additionally, the automatic stay put in place during bankruptcy will stop creditors from proceeding with debt collection efforts.
If your life has been turned upside down due to being made unemployed, you should take immediate action to learn about how Chapter 7 bankruptcy could possibly improve your financial situation.