Can I file for bankruptcy if I'm unemployed?

In the state of Colorado, you can file for bankruptcy whether or not you are employed. The process, however, will depend on your individual circumstances and the type of bankruptcy you intend to file. Generally, individuals may pursue two types of bankruptcy - Chapter 7 or Chapter 13. Chapter 7 bankruptcy is a liquidation process, meaning if applicable, some of your assets must be sold to pay creditors. To qualify for Chapter 7 bankruptcy, you must pass the means test, which requires that your income is below the median income for your state and household size. For those who are unemployed, the means test may be set at $0 and the individual may be eligible for Chapter 7 bankruptcy. An individual who is unemployed may also pursue Chapter 13 bankruptcy, which allows the filer to settle their debt through a repayment plan. In this case, the filer can propose a payment plan based on their current income. However, the filer must be able to show a reliable source of income in the future that will allow them to pay off the debt over time. It is important to note that bankruptcy may not be an appropriate solution for everyone. An individual should speak to a qualified attorney to discuss their individual circumstances and explore personal financial options that make sense for their situation.

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Can I file for bankruptcy if I'm unemployed?

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