Loss of Income and Bankruptcy

Loss of income is one of the main reasons given when consumers file bankruptcy. Job-related financial stress and layoffs being the reasons cited most. Being unemployed and underemployed with no reliable source of income makes it next to impossible to pay your debt. Filing bankruptcy can give you financial relief by eliminating all of your qualifying debt.

Unemployment Benefits

Some are fortunate enough to get unemployment benefits when they lose their jobs. The amount is rarely sufficient to cover your debt, and the government checks won’t last forever. It may help you pay the necessities while searching for another job. Whether you receive unemployment checks or not, your bills may soon pile up, and you could risk losing your home or your vehicle.

Savings

We are advised to have a few month’s worth of our monthly debt saved up for situations just like this. Rarely do we act on this advice. Most of us make enough to last until the next payday, and if the payday doesn’t come, we soon find ourselves overwhelmed in debt and swamped with creditor phone calls demanding payment.

If you have no income and no prospect of a job in the near future, even bankruptcy may not save some of your assets. Your creditors will demand to be satisfied in some way. Bankruptcy can stop your creditors from calling and give you and your attorney the time to get your finances in order and make a plan to eliminate them.

If you would like to know how you can get financial relief, contact an Elk Grove bankruptcy attorney today.