Will unemployment affect my bankruptcy file? 38 Answers as of August 26, 2011

Not at all

It should make it easier to pass the means test

This is a very general question, so I can only give a general answer. The fact you are unemployed doesn't tell us whether you have made any income from the last 6 months. If you have, and the income is too high, then you may not be able to file for Chapter 7, which is the most preferred type of bankruptcy. If your income is low enough, even if you are now unemployed, you may be able to file for Chapter 7. Your lack of income, however, may affect your ability to hire an experienced attorney at reasonable fees.

You do not need to be employed to file bankruptcy.

Unemployment is income for purposes of means testing and disposable income. If unemployment is the only family income, it will not be enough to affect means or disposable income in California.

No effect at all. Many unemployed people file.

No one has seen your detailed finances, so there is no way to answer you. If you are considering bankruptcy you MUST get legal counsel. Pro se cases usually go badly. Unemployment generally wrecks Chapter 13s and may help Chapter 7s. But knowing a general rule doesn't answer what it does in your case. That requires a review of your overall situation.

The answer is dependent on what Chapter you will file under. Unemployment can be an issue if you are filing under Chapter 13 because you need to show regular or steady income in the household. If you are filing under Chapter 7 then lack of income is not an issue.

No. Thank you,

unemployment should have no effect on your eligibility to file bankruptcy. In fact, if your income was originally too high to file Ch 7, being on unemployment at reduced income for a period of time could cause a person to become eligible.

It will not affect a Chapter 7 case. It might affect a Chapter 13 case because you must propose a plan that you can afford and might not afford it if on unemployment.

no

Being unemployed is a plus if you are filing a Chapter 7 bankruptcy. Being unemployed means you have low income or no income. This makes it likely that you will pass the means test that is a prerequisite for individuals filing Chapter 7 with mostly consumer debts. Being unemployed may make it difficult to successfully complete a Chapter 13 bankruptcy, as regularly monthly income is a prerequisite for the making payments under a Chapter 13 plan of reorganization.

Being unemployed should not impact your ability to file, qualify for or complete a ch. 7 bankruptcy. Many people who are unemployed file for bankruptcy because they cannot continue to afford and pay for their debt. You must still be able to qualify for a ch. 7 by showing that your last 6 months of income has you below the median income for an individual in CA. If you are trying to file for a ch. 13 bankruptcy, then being unemployed would impact filing for this chapter because you need to have an income to repay your debts. If you're not trying to file for a 13, then being unemployed can only help your chances of qualifying for a ch. 7.

If anything it will help you...certainly hard to question your need to file if you are on unemployment.

If you are elligible otherwise' unemployment should not affect your eligibility to file bankruptcy.

No.

It will have no affect other than lowering your income eligibility making it more likely you will qualify for a Chapter 7 bankruptcy.

No effect.

No effect.

It should make you eligible for a Chapter 7 case if you have not filed another one within the last 8 years and you are unmarried.

Being unemployed generally does not affect your "eligibility" to file. For income based eligibility requirements, the law requires your income for the 6 months prior to the month of filing to be reported. With that in mind, during unemployment is generally the best time to file for bankruptcy.

No, it will actually help you qualify for bankruptcy. You still should speak to an attorney.

If you are filing a Chapter 7 bankruptcy, there will not be any adverse consequence of being unemployed or the fact that you may be receiving unemployment benefits. If you are filing a Chapter 13, unemployment benefits will be treated as income within your Chapter 13 repayment plan.

You will most likely be eligible to file for chapter 7 bankruptcy.

You don't need to have income to file a Chapter 7 bankruptcy, but if you are filing a Chapter 13 repayment plan, you will need steady income.

Unemployment compensation has to be shown as income in your bankruptcy filing. Other than that, it will not affect the filing.