If you are unemployed and thinking about filing for bankruptcy, you may want to read what our bankruptcy team at Skrupa Law Office, LLC in Omaha and Lincoln has to say first. Bankruptcy may be the first thing you consider if you are unemployed because you think it is your only choice. However, consider the following items before doing anything rash.
A Question You Want to Ask Yourself is “Can Creditors Get to My Possessions?”
A good thing to know is creditors can and will sue you for your property if they think they have grounds in order to do so. If the judge rules in their favor, then your wages can be garnished and property can be taken. However, the state of Nebraska does have two exemption laws that can help you in this case. Contact Skrupa Law to find out if your possessions are partially or fully exempt from creditors. The only property that can be taken is the non-exempt stuff– everything else is protected. If you have a lot of nonexempt property, your best route is to file Chapter 13 bankruptcy– it includes a payment plan. If unemployment benefits do not pay enough, Chapter 7 bankruptcy will be the way to go.
Another Question to Ask Yourself is “What are my Current Employment Options?”
If you do not see yourself finding a job in the foreseeable future than bankruptcy would probably be a good idea. If you do not have any income or possessions that the creditors can seize, then it would be best to not file for any bankruptcy. The reason for this is because you can only file for bankruptcy an allotted amount of times and why waste it if your bills are going to keep piling up and there is no property that the creditors can seize. If you expect to find a job soon, bankruptcy might also be able to be avoided.
A Third Question to Ask Yourself is “What Happens if I Find a Job after I File for Bankruptcy?”
If you filed a Chapter 7 bankruptcy and then find a job, the result will not be a dismissal of your bankruptcy. As long as your income is not above the state median for your household size, you should be able to complete your Chapter 7 bankruptcy. If your new income is too high, your case may have to be converted to a Chapter 13 bankruptcy. However, if you filed for Chapter 13 bankruptcy the repercussions could be different. The new income coming in could affect your current payment plan. You will likely have to increase your monthly payment amount.
Good News! There are Non-Bankruptcy Options.
- You may be able to work out a payment plan directly with your creditors that your budget will allow.
- You may be able to negotiate a debt settlement directly with the creditor in which they will accept a lump sum payment for less than you owe and forgive the remaining amount owed.
- You can seek guidance from the credit counseling services and/or negotiate a reduced sum payment plan by selling or refinancing some property.
Contact Skrupa Law Today at (402) 999-0247 in Omaha and (402) 464-3311 in Lincoln
At Skrupa Law we want to help you in any way we can. If you are unemployed and do not know if bankruptcy is a good idea for your situation, contact Skrupa Law today at our Omaha office (402) 999-0247 or in Lincoln at (402) 464-3311. Our goal is to be able to release some or all of your stress!