Indiana Unemployment Claims on the Rise

Indiana Unemployment Claims on the Rise

The US Department of Labor reported that Indiana unemployment claims rose in the week ending on January 27th. Possibly caused by layoffs, Indiana jobless claims were reported at a whopping 4,122 for the week, up from 3,996 the previous week. This appears to be a part of a nationwide trend, as total US filings are also up 9,000 claims from the previous week. Bankruptcy filings are also on the rise in the US. Could bankruptcy be the next move for newly laid off Americans?

How Does Unemployment Affect Chapter 7 Bankruptcy?

When you are unemployed, you are likely contemplating what your options actually are. Even with unemployment benefits, many Americans will fall well below the median income in their state. This means that an unemployed person who is struggling with their debts and looking to file bankruptcy will likely pass the means test that will qualify them for a Chapter 7.

How Does Unemployment Affect Chapter 13 Bankruptcy?

A Chapter 7 is a great way to discharge your debts, however, it might not be a great option for those looking to save their assets. In that case, you might be looking for a Chapter 13. A Chapter 13 may be difficult to navigate when unemployed, even if you are receiving benefits. This is because your debt is placed into a repayment plan that you are expected to contribute to regularly. If you cannot make those payments, your bankruptcy will likely get dismissed. In this case, it is important to communicate with your lawyer about what you can afford so they can help you make the decision that is right for you.

Can Bankruptcy Help You?

If you are unemployed and considering bankruptcy as an option, call us here at The Law Offices of Dax J. Miller for a free phone consultation. We can help you figure out which chapter is right for you.

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