Lost Unemployment Checks?

Were you in the restaurant industry and lost your job as a result of COVID-19? If so, you may have also lost unemployment checks. This can be an extremely challenging time for many Americans who are in this same situation as you. Bankruptcy can help you. 

How Bankruptcy Can Help if You’ve Lost Your Unemployment

If you’ve recently lost your unemployment checks, the first thing bankruptcy can do is help you keep your home. It can assist in delaying foreclosure on your home or any evictions you may be facing as a renter.

Next, bankruptcy will help you get rid of all of the credit card debt that has likely piled up due to being unemployed. Even a few months without a paycheck or an unemployment check can lead to thousands of dollars in credit card debt. Later, even when you secure employment, it can be hard to pay this debt down.

Finally, bankruptcy can help you keep your vehicle. You need transportation to look for work and get around in general. However, a complete loss of income often leads to vehicle repossession.

Don’t I have to be employed to file for bankruptcy?

Not necessarily. When it comes to bankruptcy, you have different options. Some people will indeed be ineligible for certain types of bankruptcy. However, chances are you will qualify for at least one type of bankruptcy that will help you get back on your feet.

What Type of Bankruptcy to File For

Most people in your situation would be eligible to file for either Chapter 7 or Chapter 13 bankruptcy. This is if you are currently unemployed and without unemployment assistance from the government.

Choosing will depend on your prior position and how much you used to make, how long you’ve been without employment, whether you have a new job coming up, and several other factors. Our attorneys will help you figure out which type of bankruptcy will be right for you.

Is bankruptcy right for me?

It can be daunting to consider filing for bankruptcy when you’re used to being employed, having a steady flow of income, and paying all your bills on time. The word itself tends to make people apprehensive.

It’s important to note that just because someone files for bankruptcy, this doesn’t mean they’ve failed or that things will never be the same with their finances again. Try to think of bankruptcy as a tool. It’s not a tool that you should run to all the time, but it can be beneficial at certain times.

Bankruptcy can help you get back on your feet so that you can regain your financial confidence and start a new path.

Contact SM Law Group Today

Kian Mottahedeh is the founder and a partner at SM Law Group, a bankruptcy law firm located in Encino, California. For more information on filing for bankruptcy after losing your unemployment, please call us for a free consultation.