As the economy has hurt state and local governments all over the country, many public employees are finding themselves eligible for Chapter 7 bankruptcy. After the changes made to U.S. bankruptcy laws in 2005, many police officers, firefighters, teachers, and other government employees had too high of salaries to qualify.
“Traditionally, public employees were not eligible for Chapter 7 Bankruptcy due to the fact that they had good salaries and typically didn’t have to pay much toward their benefits … In the current fiscal crisis, that is changing,” said one bankruptcy attorney.
In order to balance government budgets, many public employees have had to work under wage freezes, pay more for benefits, and give back some of their salaries to deductions. These deductions are taken out of their salary, and as a result, many government workers are becoming eligible for Chapter 7.
To discuss eligibility for Chapter 7 bankruptcy, contact the Milwaukee Chapter 7 bankruptcy lawyers of DeLadurantey Law Office, LLC at 414-377-0518 today.