Best Bankruptcy Lawyers in Southaven, MS

Can You File for Bankruptcy After You Lose Your Job? Losing a job is one of the most devastating things that can happen to anyone. Some people are able to find a job within a few months and avoid financial ruin. But what if you remain unemployed for six months or more? Worse still, what if you were already in a financial predicament before you were laid off? In such a case, you may consider filing for bankruptcy to get some relief from your creditors. What Filing for Bankruptcy Entails Bankruptcy procedures are primarily regulated by the U.S. Bankruptcy Code. However, most states have their laws to supplement the federal code and outline the specific guidelines to follow while filing for bankruptcy. That said, there are two main forms of bankruptcy you can file for: Chapter 7: This chapter allows you to “discharge” or void liability for most of your unsecured debt. However, the court may order the sale of some or most of your assets to pay back some creditors, particularly if you have collateralized debts. Chapter 13: This chapter typically buys you some time and enables you to defer your debt repayments to the future, usually over a 3–5-year period. If you have unsecured debts, you will still need to pay them within the plan period. Depending on your income, however, the court may only order you to pay some of the debt and discharge the remaining portion after you complete the plan.