Job Loss and Bankruptcy
Most people never imagine that they will ever face bankruptcy, yet unexpected job loss can bring this unfortunate circumstance front and center. Understanding how to handle bankruptcy after job loss can benefit you for years to come.
Delaying your bankruptcy filing after a recent high-paying job loss can actually make it easier for you to qualify for Chapter 7 bankruptcy. Not everyone is eligible to receive Chapter 7 relief, and there is a “Means Test” that looks at your income and expenses to determine if you qualify for the guidelines of Chapter 7. In order to pass the “means test” your income must be low enough for you to file for Chapter 7 bankruptcy. Therefore, if someone recently loses a high-paying job, it is not advisable for him or her to immediately file for bankruptcy. The means test will take the average of your gross income for the six months prior to bankruptcy and then compare it against Georgia’s state median for a similar household. Therefore, if you file for bankruptcy immediately following the loss of a job, the last six months that you have earned a high-paying income will count against you.
At Gingold & Gingold, LLC, we can help you navigate the waters of bankruptcy in order to help you make the best decisions regarding your finances and financial future. Bankruptcy courts have discretion to consider special circumstances when people file (or attempt to file) for Chapter 7 bankruptcy. However, your previous income will still come into account, making it harder for certain individuals to qualify than others.
Ira D. Gingold and Jamie L. Gingold have been practicing law for a combined 60 years, and they have considerable experience handling difficult and complex bankruptcy matters. Having resources does not mean that you cannot file Chapter 7 or Chapter 17, but there are areas of the law that you need to be knowledgeable about in order to work in your favor. Contact Gingold & Gingold, LLC, today to schedule a free consultation.