I Have No Job and No Assets, Should I Still File Bankruptcy?

August 8th, 2010 by Reed Allmand

Many long-term unemployed debtors are feeling particularly discouraged as job figures look less promising this year than they did at the beginning of the recession.  Many have been unable to pay their bills or even their mortgage for a year or more.  For these individuals, securing the basics has become their priority and their creditors are unable to collect even if they have a judgment because the debtors have no income and no assets that can be seized.  But should these types of debtors, who have no job and no assets still filing bankruptcy?  The answer is – maybe.  Let’s take a look at why this type of debtor should still consider filing bankruptcy:

1. If the debtor is not retired, then most likely they will find another job once the recession is over.  If they do not file bankruptcy now and wipe out their unsecured debts, they could find themselves facing collections actions by creditors pursuing payment on old debts.
2. If the debtor does not file bankruptcy now, while they have no assets, once they do secure new assets such as a home, the creditors may file a lien against the property.
3. By filing bankruptcy while they have no income and no assets, they are able to get a head start on their new fresh start.  Many unemployed individuals are facing debts that they accumulated while they were fully employed.  It can often be difficult to get back on your feet by taking a “survival job” or other employment that pays less if you have large amounts of debts that you can only pay with a large salary. Filing bankruptcy reduces those debts giving you a better chance at recovery.
4. Filing bankruptcy now will stop creditor calls, letters and lawsuits, giving you the peace of mind you need.