Unemployment and Bankruptcy

: Reese Baker & Associates

  Filed under: bankruptcy

One of the most common reasons for filing bankruptcy is unemployment. When the primary bill payer in the home loses their job or has a reduction in hours, it can be devastating to the household finances. Layoffs are listed as a significant factor for Americans filing bankruptcy. 

Savings

Traditional advice is to have three to six months of salary in savings to get us through the hard times in case of income loss. Most of us, however, do not have a large portion of our income tucked away. 

Unemployment Benefits

Unemployment benefits are in place to help when in between jobs. For those fortunate enough to get these benefits, it is usually not enough to pay your monthly debt. And for those without these benefits, you may quickly find yourself with a pile of unpaid bills. 

If you have no prospect of income in the near future, it may be unavoidable that you will lose some of your assets. Filing bankruptcy can help protect your most important assets from being seized for nonpayment. When you file bankruptcy, the automatic stay goes into effect, stopping all collection attempts against you. 

If you have lost your job, and either unemployment benefits are not enough, or you have no income at all, you may want to file bankruptcy to eliminate your unsecured debt. Contacting a Rio Grande bankruptcy attorney can help you choose the best option for you to get financial relief.