Elk Grove Bankruptcy Attorney Discusses Chapter 7 Bankruptcy for those on Unemployment

The Trend of the Unemployed Seeking Chapter 7 is Discussed by Elk Grove Bankruptcy Lawyer

Many who come to my office and hire me as their bankruptcy lawyer are unemployed. I was reading a recent opinion piece online regarding Chapter 7 Bankruptcy and unemployment. Although the relationship may seem obvious, it did get me thinking about how Chapter 7 is working for many people and the basic pattern many follow.

Alternatives to Bankruptcy

Often those who are unemployed and receiving benefits from their Department of Employment Security (DES), find that they cannot make ends meet. They raid savings, retirement plans and sometimes home equity to get by.

When they find that they cannot meet all financial obligations, they will often not pay their credit card debt and other unsecured debts and, if they can, keep up payments on their mortgage and vehicles.

Discharging Unsecured Debt

When things get to the breaking point, those who are unemployed seek Chapter 7 Bankruptcy and, once they discharge their credit card debt, find enough relief to keep their home and vehicles.

Finding Stability

That being done, many who come to my Sacramento office have the breathing room to then find stability despite still being unemployed as the unsecured debts that were dragging them down have been discharged through Chapter 7 Bankruptcy.

Alternatives

It leads to an interesting question regarding credit card companies and their losses in this process. Shouldn’t they reinvent themselves and find a way to make it easier for the unemployed to pay their debts rather than harder? They appear to be the big losers in Chapter 7. I’m glad that I can help those in the Elk Grove and Northern California area seeking Chapter 7 Bankruptcy find their financial footing and often keep their homes and vehicles as they work towards finding employment once again.

Please contact our bankruptcy offices in California, serving Sacramento, Oakland, Santa Clara, San Francisco and other communities in Sacramento County, at info@california-bankruptcyattorney.com or at 888-589-1977 if you have any questions regarding bankruptcy.