When you are unemployed, it may be the perfect time to file a bankruptcy case. It can be a difficult decision because when you are unemployed, creditors may consider you “judgment proof” and decide not to pursue collection against you. However, when you do not have a job, it may also be the right time for you to qualify under the means test for a Chapter 7 case.
The court uses the means test to determine if an individual is eligible for a Chapter 7 filing. The means test looks at your income for the previous six months to determine your ability to repay your creditors. If you have no income and haven’t had any for some time because you are unemployed, you may be able to file a Chapter 7 when you otherwise wouldn’t qualify.
The trustee may also review your future income even if you pass the means test. If the trustee believes you have the ability to pay your creditors, s/he could object to your discharge. When you are unemployed, the likelihood of the trustee taking this action is minute.
If you have lost your job and you are considering filing a bankruptcy case, schedule a consultation with us to determine how it may benefit you.
The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC handle Chapter 7 and Chapter 13 bankruptcies, as well as debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense and debtor’s rights matters. We serve the areas of Milwaukee, South Milwaukee, West Milwaukee, Milwaukee County, and Waukesha County, including the municipalities of Big Bend Village, Brookfield City, Brookfield Town, Butler Village, Chenequa Village, Delafield City, Delafield Town, Dousman Village, Eagle Town, Eagle Village, Elm Grove Village, Genesee Town, Hartland Village, Lac La Belle Village, Lannon Village, Lisbon Town, Menomonee Falls Village, Merton, Town, Merton Village, Mukwonago Town, Mukwonago Village, Muskego City, Nashotah Village, New Berlin City, North Prairie Village, Oconomowoc City, Oconomowoc Lake Village, Oconomowoc Town, Ottawa Town, Pewaukee City, Pewaukee Village, Summit Town, Sussex Village, Vernon Town, Wales Village, Waukesha City, and Waukesha Town. Call DeLadurantey Law Office by phone at (414) 377-0518.