Bankruptcy is a practical solution for escaping the overwhelming pressures of insurmountable debt. If you are unemployed and unable to meet the demands of your regular debt payments, bankruptcy can be a lifesaver. Below is a brief discussion of how bankruptcy may better your financial life if you are currently out of work, and how a bankruptcy attorney can assist in the process.

Chapter 7 Bankruptcy

Under a Chapter 7 bankruptcy, much of your unsecured debt will be eliminated by the courts. In this case, being unemployed might actually help you qualify for a Chapter 7 discharge. The courts will look at the amount you owe and weigh it against the fact that no money is presently coming in; most courts will see how unrealistic it is for you to repay exorbitant debt with no income, and your discharge will likely be granted.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is another popular type of filing. It allows for the restructure of your existing debts into a repayment plan that is more manageable for your current financial situation. If you are unemployed and considering Chapter 13, your unsecured creditors may be willing to settle your debt for less than what you owe, making it easier and more accessible for you to repay it.

How a Bankruptcy Attorney Can Help

Bankruptcy laws are notoriously complex and difficult for the average filer to understand—this is where a bankruptcy attorney's help is truly invaluable. They can assist in guiding you to the best path to take in light of your unemployment status, and they will represent your interests throughout any and all bankruptcy proceedings.

Harry B. Zornow is a bankruptcy attorney who has been serving the Hamilton, OH, area for more 30 years. If you are in need of assistance getting your financial life back on track, he is here to help. Call (513) 737-9770 or visit his website to schedule a consultation. If you are out of work, bankruptcy can provide a much-needed fresh financial start.