The Toys R Us bankruptcy liquidation sale is nearly over and, unfortunately, that means that roughly 30,000 employees will be out of work by the end of the month. Workers, many of whom have been with the company for years, say that they will not receive severance pay or be compensated for accumulated sick time, leaving many scrambling to find alternate work as quickly as possible.
While some will be successful in landing on their feet following a job loss, particularly in the strong job market we are seeing today, others may find that losing employment even for a short time is the last straw in an already difficult financial situation. Before credit card debt or medical bills start to accumulate, some may want to consider bankruptcy protection to get a fresh start.
When someone is faced with a job loss, they often ask if losing a job will make it easy to qualify for bankruptcy. The answer is yes, but, keep in mind that when determining income a bankruptcy court will average your monthly income over the last 6 months. It may be a matter of waiting one or two months after a job loss to bring down your overall “monthly average”, so you can qualify for chapter 7 bankruptcy relief. However, don’t wait to visit an experienced bankruptcy lawyer to evaluate your case – many offer a free initial consultation so you can get the information you need to determine if bankruptcy is a viable option for you to pursue.
What is the Difference Between a Chapter 7 & 13?
All of this discussion on qualifying for a Chapter 7 may leave some wondering why they would file a Chapter 7 instead of a Chapter 13 bankruptcy. First, keep in mind the majority of bankruptcies filed are Chapter 7. There are many qualities that make Chapter 7 bankruptcy an attractive option when compared to Chapter 13, such as a much shorter process (months versus years), and also that a Chapter 7 allows the complete discharge of unsecured credit card debt that many consumers are straddled with after years of trying to make ends meet.
On the flip side of the coin, a Chapter 13 bankruptcy offers some tools a Chapter 7 bankruptcy does not. Say, for example, you are trying to save your home from foreclosure. In this case, a Chapter 13 bankruptcy might be a better option so that you can reorganize your debt to continuing making payments on a home you hope to keep.
Contact an Experienced Peoria Bankruptcy Lawyer for Help
If you are in a difficult financial situation after a job loss, don’t wait to call a bankruptcy attorney to get the information you need to determine if bankruptcy protection is a good strategy for you and your family. For a free initial consultation, contact the Peoria Illinois Bankruptcy Law Offices of Charles E. Covey for help today at 309-674-8125.