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Can I file Chapter 7 bankruptcy if I am unemployed?

On Behalf of | Feb 14, 2023 | Bankruptcy, Chapter 7 Bankruptcy

When you are overwhelmed with debt, a Chapter 7 bankruptcy can give you the relief you are looking for and allow you to start over financially.

There are many requirements you must meet to qualify for a Chapter 7 bankruptcy in Florida. If you are unemployed with no income, you might worry that might make it harder to qualify.

Yes, you can file

The good news is that you can still file for a Chapter 7 bankruptcy if you are unemployed. You must pass a means test to be eligible to file for bankruptcy. The means test is a review of your income and expenses.

Therefore, being unemployed could help you qualify for bankruptcy, since you have no income.

Have a financial plan

Although you may be able to file for a Chapter 7 bankruptcy, you should still have a plan for your post-bankruptcy life. Chances are, you are not sure when you will next find a job, or what your income will be.

Before filing, make a list of expenses and bills you will still need to pay after bankruptcy, and which ones you can discharge. Once you have decided that you are going to file, you could stop making payments on the debts that will be discharged.

You should also inventory your assets. You may assume if you own a home or have assets such as retirement funds, you cannot file for bankruptcy, but that is not always true.

Make careful decisions regarding assets

Decide if you should sell some assets to pay for your living expenses while you look for a job, or keep some. However, some assets could potentially be sold to pay creditors, so it is important to know what will happen to them if you file.

Overall, your unemployed status will likely make it easier to qualify for a Chapter 7 bankruptcy, but you risk losing some assets that you might need if you cannot find a job. A bankruptcy attorney can advise you on how filing while unemployed can impact your situation.


Kingcade & Garcia | A Miami Law Firm