There is no income requirement to file for Chapter 7 bankruptcy. Being unemployed with no income makes it easier for you to qualify for a Chapter 7 bankruptcy. This kind of bankruptcy can offer you a new start if you are under employed or after a loss of employment and for the most part your unsecured debts will be dismissed. If you are trying to decide whether to file for bankruptcy or not, ask yourself if you will accumulate more debt even after you find employment or if you’ll still qualify for a Chapter 7 after you start getting an income with your new job. It’s always good to discuss these things with an attorney so that way he can help you make timely and effective decisions.
There is a requirement that you have some source of income if you file Chapter 13 bankruptcy. Since Chapter 13 bankruptcy is a restructuring of your debt you need income to meet the re-payment obligations associated with this kind of bankruptcy. If you are behind on a house payment, for example, and are having a hard time getting you mortgage lender to work with you to catch up you missed payments then Chapter 13 can be a great solution for saving your home from foreclosure. Again there are numerous other factors to look at when you decide to file for Chapter 13 bankruptcy so speaking with an experienced attorney is always your best option.
So them the question become how do you pay for a bankruptcy if you have no income. Believe me I understand you dilemma. For over 17 years I have been asking people that are broke to pay me for my services. You have to make some hard choices, that for sure, but many people will turn to family and friends or even their church for help. These are all good viable solutions. I have advocated for years that you think long and hard before you make a deal with an attorney that will file with “no money down” and then finance your bankruptcy. Most of these places are not looking out for your best interest in my opinion and any deal you make with them is going to be in their favor – so my advice is – think long and hard before you go down this path…there are better alternatives out there.