Please please please help me

[MSbklawyer]

Nobody told me that. I just figured that super-long-term unemployment could make it look like I didn't try to pay off the debts or whatever. Or that I was abusing the system by not working and then wanting to make the debt disappear through court. I don't know? I guess I'm way off.

And I don't mean to sound like a moron, because I have read so much on these forums before posting, but a Chapter 13 for me? With no assets to speak of? I thought, if anything, I was definitely in the Chapter 7 camp (if either)?

You probably ARE eligible for a 7, but your student loans would survive the discharge. You could go 13 and stop the interest clock from running on those loans and make a serious dent in them.

[TotallyLost]

If super-long-term unemployment was a problem, it would rule out 75% of the people in my area from filing. We've got a bunch of folks that depend on their guvmint checks to live. They don't even try to work and file as often as possible.

But are they successful? I don't mean to harp on it... just trying to make sure. I'm planning on scheduling an appointment with an attorney right after Labor Day. I'd just like to have some idea as to what he'll say regarding this issue.

You probably ARE eligible for a 7, but your student loans would survive the discharge. You could go 13 and stop the interest clock from running on those loans and make a serious dent in them.

Ah, I see. So 13 would have an added positive without any additional negatives?

Thanks so much for the responses.

[music12]

if by "successful" you mean the bk goes smoothly - answer is they would be equally successful as those who are employed.

no bk filing is a "positive".

i don't know how you could "go 13" if you are unemployed - you'd have no income to fund it. maybe MSbklawyer will explain what he means.

[frogger]

But are they successful? I don't mean to harp on it... just trying to make sure. I'm planning on scheduling an appointment with an attorney right after Labor Day. I'd just like to have some idea as to what he'll say regarding this issue.

Thanks so much for the responses.

In our small town, there are 3 BK mills that churn them out every day. I wouldn't call these people "successful", but most of their bks are.

[MSbklawyer]

i don't know how you could "go 13" if you are unemployed - you'd have no income to fund it. maybe MSbklawyer will explain what he means.

I understood him to say that gainful employment was right around the corner with his friend's company. But you're right, he would need a regular source of income to fund a 13.

[pcn]

You probably ARE eligible for a 7, but your student loans would survive the discharge. You could go 13 and stop the interest clock from running on those loans and make a serious dent in them.

[ApresMoi]

Long-term Unemployment Impacts Ch. 7?

I am a long-term unemployed, and had the same question as others (whether that would negatively impact how a judge would view my overall financial situation). A year after I lost my job, one of the agencies I registered with said my former employer never returned their phone calls asking for a reference. So for an entire year, I had been flooding the market with applications, all for naught. No way was I going to get a job offer without a reference -- even if only of the name, rank and serial number variety. There's more to this story, but for the sake of brevity, I will just say that I eventually wrote my former employer a 'cease and desist' letter. At about the same time as that situation was straightened out, the economy went into freefall and companies stopped hiring. My timing could not have been worse.

The point is, not all long-term unemployed aren't looking. We workers really are part of a larger political and social system that impacts us directly. So I am happy to hear that I won't be viewed as some slacker in a BK court. I have used up all my savings to maintain these cards' minimum payments even though that left me with nothing to live on. Now I am at the end of the line. Will I ever again be re-employed at my old (good) salary? I'm no longer counting on that. But the debt is crushing, it accumulated over the years (not 'just' due to unemployment), and I can no longer 'handle' the creditor phone calls. That much I know.

If super-long-term unemployment was a problem, it would rule out 75% of the people in my area from filing. We've got a bunch of folks that depend on their guvmint checks to live. They don't even try to work and file as often as possible.

[mtbc]

Although bankruptcy can obviously still be a good idea if you're not on top of your debts, do remember that you can end the telephone calls anyway just by providing a suitably-worded letter to them. (And then sue them if they continue.) No need to fear the phone while you get a filing together.