With almost 10% of U.S. citizens out of work, many living on unemployment, and still more being forced to take jobs that pay low, it may seem our financial crisis is just starting. It’s important to note unemployment has gone up since last year, but only by a few tenths of a percent. New initiatives are being created in order to support more small to midsized businesses who employ more workers than anyone.
But in order to ensure you are financially protected while unemployed, there are some guidelines to consider. If you are unemployed, can you afford bankruptcy? How does bankruptcy affect a new job? What if you or a loved one lacks medical coverage and is forced to go to the hospital for days if not weeks? Let’s find out.
Can you afford bankruptcy?
Bankruptcy is quite cheap in comparison to the benefits it offers. For all filers, including Texans, a Chapter 7 bankruptcy will only cost you $299. For Chapter 13, the court fee is $274. That is quite low. You can almost always find a way to make that payment, even if it means getting a loan. This is not a risky proposition: if you are eligible to file, you can discharge thousands in debt.
Do you need a lawyer? Can you afford him?
A lawyer, on the other hand, may be the most important part of your filing. A professional Texas bankruptcy lawyer is invaluable. If you cannot afford a lawyer, if it’s just impossible to pay the fee, you can try to file without one. You may have fights with creditors. You may not know how the court process works. If you fail, if your discharge never comes, it can put you into a much worse situation.
A Texas bankruptcy lawyer will not always charge high rates. This is not defending a criminal act. We are just talking about debts. It’s recommended you consider prices you can afford, then factor in experience. The rates are about $1,000 to $2,000 for a Chapter 7 or Chapter 13 bankruptcy.
What if you have a job?
If you have a job, and fear wage garnishments, you can save a lot of money by filing for Chapter 7 bankruptcy. By law, when you file bankruptcy a judge puts an automatic stay on all collections against you. That means your income will continue to come in.
3 Ways Bankruptcy Protects You
Bankruptcy protects you from creditors, protects you from having to pay impossible debts, and protects your assets such as your home from being taken. Bankruptcy is not a financially risky decision. It does have some affects on your credit and ability to get loans, but in both cases the truth is you can open new credit lines and get loans very soon.
Advantages of Chapter 7 Bankruptcy
If you are unemployed, Chapter 7 bankruptcy is highly effective. If you lack insurance and just received a $25,000 medical bill, if you lost your job and had to charge many basic expenses totaling thousands, and if you simply want a fresh start, bankruptcy can help.
