If you have been unemployed for a time, it is very possible that debt is accruing under your name and your first response maybe to file for bankruptcy because you do know how else to address your uncontrolled debt situation. While this may be the best choice for you in the long run, before making a snap decision doing your research is always the best way to go. Consider a few key factors about bankruptcy before deciding you are going to file the petition. And when you do learn that bankruptcy is the best option for you, contact an experienced bankruptcy lawyer in your area in order to help you go through the process and create a plan of action that is best suited for your needs.

First off, you want to consider the very real issue of the creditors and whether or not they are trying to take control of your assets. If they seek to sue you for owing them "x" amount of dollars and they win their case, you could be subject to more than just losing your car or your home, they could have your wages garnished from your bank accounts as well as take over any other property you may have to your name. However, there are state laws that protect you from having literally everything taken from you by a creditor, though it does vary by state. In this specific situation, they would be called judgment creditors because it was deemed by the court that they could seize some of your property. To learn more about exemptions from creditors like this, contact your local bankruptcy attorney.

A creditor only has the right to take that which is deemed to be a non-exempt asset, for example the equity in your home. So, if a creditor is seeking to take action against you, bankruptcy is likely the option just for you because you will then be protected from the hands of the creditors. Under Chapter 13 you will then have the option to spend the next 3 to 5 years paying off what you owe to creditors under a debt repayment plan decided by the court. Meet with an attorney in order to work through whether this option is available to you or not, depending on the extent of the debt you owe and the likelihood of your being able to pay it back.

When looking at debt in the realms of unemployment, a large factor to take into consideration is whether or not you believe you will be getting a job in the near future, or not. Your ability to pay off debt largely rests on the fact that you have a source of income to do so. If you are certain that a job is not going to be possible for you because you have already been unemployed for a long time, bankruptcy may be what can protect you from losing a large majority of your property.

In the event that a job is on the horizon, and you are just unemployed for a short season; if the debt has mounted too high you may still want to consider bankruptcy in order to nip the debt in the bud. Chapter 7 may be a good option as it will erase your debt so that you can have a fresh start. Discuss your unique situation with an experienced bankruptcy attorney for more information and to determine what the most effective plan of action is for you. With years of experience under their belts, an attorney will be able to walk you through the many options available to you, both for debt resolution and bankruptcy.