Deciding to File Bankruptcy after Gaining Employment

Filing Bankruptcy After Employment

A lengthy period of unemployment often contributes to growing debt obligations.  After finally gaining employment you feel like you have the opportunity to get your finances back on track, or at least, work toward getting your finances in better order. When you were out of work you may have explored the option of filing for bankruptcy. For some, upon gaining employment, it may prove to be a better time to consider filing for several reasons.

Even though you have a job, it may take time to get your budget and expenses re-adjusted, especially if your income is below what you made at your previous place of employment.  Bankruptcy may give you an opportunity to discharge unsecured debt, such as credit cards and medical bills , as well as help you keep most assets. The process also stops collection activity from debt collectors that may start up again upon gaining employment.

Filing bankruptcy after finding a job may also depend on how long you have been working. Some experts claim its best to file after being on the job for a certain time period. An experienced bankruptcy attorney can help you review your situation, options and help determine if this is good time for you to file.

Deciding what chapter to file depends on your personal financial situation. Chapter 7 bankruptcy allows qualifying unsecured debt to be discharged or wiped away, giving you a clean slate. Chapter 13 bankruptcy allows you to construct a repayment plan toward certain debts.  Chapter 7 is the most common bankruptcy that is filed whether or not a consumer is employed but now that you have gotten a job, you may want to consider Chapter 13 if you are looking to get your debt restructured.