Unemployment Income and Bankruptcy Protection

No one “plans” on losing their job. It always catches everyone by surprise. The key is that you have to take the steps to protect yourself and make smart financial decisions when it happens to you.

The Court looks at your previous 6 months of income from all sources for the purpose of evaluating whether you qualify for bankruptcy protection under a Chapter 7 (Fresh Start) or a Chapter 13 (House Saver).

Therefore, if you have been unemployed for 3 to 6 months, you will probably qualify for a Chapter 7 Fresh Start Bankruptcy. If that is the case, you can exempt up to $125,000 equity in your house (keep your house), exempt 100% of your retirement plan (don’t tap into your retirement) and get rid of only the bills that you are having trouble with so that you can weather the storm and get a fresh start.

If you are behind on your house payments, a Chapter 13 will give you 36 months to make up the past due payments, avoid foreclosure and save your house.

Give me a call for a free initial consultation and evaluation. (253) 815-6940

Christopher Benson

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