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Chapter 13 Bankruptcy Options for Debtors with No Income

A person filing for Chapter 13 bankruptcy is expected to keep up with a repayment plan. However, this may not be possible if a person loses their income due to job loss or they cannot afford payments due to a financial emergency. In these situations, a person may need to have their bankruptcy converted or work to restructure their spending.

If you are thinking about filing for bankruptcy, you may want to consider your full range of options before taking significant action. For more information about how we may be able to help you through this process, contact the Joliet bankruptcy lawyers of the Law Offices of Stuart B. Handelman, P.C., at 815-722-2201.

Working through Bankruptcy Without a Steady Income

For many debtors, Chapter 13 and its many benefits may simply not be feasible due to a lack of a dependable and sufficient income. The courts will often dismiss Chapter 13 cases if debtors are unable to afford the repayment plan.

However, these debtors may consider some of the following opportunities:

  • Filing for Social Security if hardship is due to a disability
  • Filing for unemployment if hardship is due to being laid off
  • Converting a case to a Chapter 7 bankruptcy
  • Requesting a modification to a repayment plan before it is accepted

These options may allow a person to either reevaluate their sources of income or modify their bankruptcy to proceed. A competent and capable legal representative can help to guide a debtor through this process.

Contact Us

If you can no longer manage your debt load and are lacking income, you should not hesitate to speak with an experienced lawyer. Contact the Joliet bankruptcy attorneys at the Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201 today.