Filing for Bankruptcy in a Dismal Job Market

Remember the Great Resignation of 2021? It now seems ridiculous that people would quit their jobs on purpose, with no plan set up for new employment, and expect to survive economically. Today, who would choose to be unemployed? Prices have gotten so high, with little hope of relief. To add insult to injury, even as artificial intelligence has sapped the attention spans of your children and friends, the fear that the decision makers at the organization that employs you will soon drink the AI Kool-Aid and replace you and your coworkers with bots that are frighteningly skilled at pretending to obey. The only thing that keeps your mind off of your worries about the dismal prognosis for your economic and social wellbeing is your work; you are determined to enjoy it while it lasts. You will savor every awkward social interaction with your coworkers and that moment every pay period when you feel relief about having paid all your bills and before the panic sets in about how little money you have left for minor expenses throughout the month. Losing your job would throw everything into disarray. If you have already lost your job, how do you cope? Unless you have a backup plan lined up, such as your relatives covering your expenses for as long as it takes you to find another job, filing for bankruptcy protection might be your best option. If you have recently lost your job and are considering filing for bankruptcy protection, contact a Plantation chapter 7 bankruptcy lawyer.

How a Bankruptcy Protection Can Prevent Financial Catastrophe and Give You Time to Regroup

If you are used to living from paycheck to paycheck, then you might be surprised at how quickly things can spiral out of control if you lose your main source of income. Your mortgage can go into foreclosure, the bank can repossess your car, and credit card companies and other creditors that you cannot pay can sue you.

By contrast, if you file for bankruptcy protection, the court will limit what creditors can take from you. Chapter 7 bankruptcy is the obvious choice for people who do not have enough employment income to qualify for a chapter 13 filing. In a chapter 7 bankruptcy case, the court can liquidate non-exempt assets. Income that you get from Social Security or disability payments is exempt, and so are your house and car. Most people who file under chapter 7 can get through their bankruptcy case without the court liquidating any of their property. Filing for chapter 7 can also help you buy time to sort out the situation with your car loan or mortgage payment, even if it eventually means that you have to give up your house or car by choice.

Work With a Debt Lawyer About Mitigating the Financial Fallout From a Job Loss

A South Florida debt lawyer can help you avoid the worst-case scenario if you have recently lost your job.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics