How Unemployment Benefits May Affect Your Bankruptcy Eligibility
Many people have recently lost their jobs as businesses shut down over government regulations due to the COVID-19 pandemic. There have been over 2.9 million unemployment benefit claims in Georgia over the last year. If you have become unemployed and are struggling to pay creditors, bankruptcy may be an ideal solution for you. Here are how unemployment benefits in Georgia may affect your ability to file bankruptcy.
Unemployment Benefits and Chapter 7 Bankruptcy
Individuals who are overwhelmed with debts may wish to seek a Chapter 7 bankruptcy to give them a fresh start. With a Chapter 7 bankruptcy, any assets you own that are not protected by state or federal laws may be sold to repay the debt. Unemployment benefits in Georgia are counted as income and are usually not a sufficient amount to affect your Chapter 7 bankruptcy. If your income does make you ineligible for a Chapter 7, you may be able to qualify for a Chapter 13 bankruptcy.
Unemployment Benefits and Chapter 13 Bankruptcy
A Chapter 13 bankruptcy allows debtors to keep their assets while repaying their debts. If you are unemployed, you can qualify for a Chapter 13 as long as your benefits are sufficient enough to fulfill the obligations of a repayment plan. If you cannot make payments with your unemployment income, you may be able to get assistance under the CARES Act. You may be able to request a modification to your repayment plan or receive an extension.
Request a Confidential Bankruptcy Consultation
If you are experiencing financial struggles as a result of the pandemic, bankruptcy may be an ideal solution to help you get debt relief. To determine if bankruptcy is right for you, you may want to consider seeking legal advice from an experienced attorney. Contact Gingold & Gingold to receive a confidential bankruptcy consultation today.