When you make the decision to file for bankruptcy, you will discuss whether a chapter 13 or chapter 7 bankruptcy is right for you. When you meet with your bankruptcy attorney, you will go over all of your debt, assets and your current income to determine if you meet the means test for filing a chapter 7 bankruptcy. If you were fired after filing for bankruptcy, we can guide you in the right direction.

If your income is below the means income in your state and has been for the last six months, you can file for chapter 7 bankruptcy. When you make more money than the means, you will be able to restructure your debt and create a repayment plan.

Getting Fired During a Bankruptcyfired after filing for bankruptcy

Getting fired is never easy, but getting fired while you are trying to deal with your debt in a bankruptcy can feel like the last straw. If you are fired during your bankruptcy proceeding, you will need to amend your petition to include your new information. When you have a repayment plan based on an income that you are no longer receiving, you may be able change your payment plan because of your circumstances.

A chapter 13 bankruptcy is based on disposable income and your ability to pay back your debt. When you get fired from your job, your disposable income plummets. While you may have assets that were taken into consideration regarding your ability to pay back unsecured debt, your income is a substantial component of your repayment plan. You can petition for a modification of your current payment plan or a hardship discharge based on any other assets or income you may have.

Modifying Your Bankruptcy Petition

You may end up paying back some of your unsecured debt in the beginning of your bankruptcy before you get fired from your job. Getting fired changes your circumstances, and will reduce your six month mean income within a month. Talk to your bankruptcy attorney right away if you are fired from your job while in the middle of a repayment plan in a chapter 13 bankruptcy.

Getting Through Your Bankruptcy

As you work through your bankruptcy proceeding, talk with your attorney any time there are changes to your income. If you have questions, don’t be afraid to talk to your bankruptcy attorney. While the process of bankruptcy can feel overwhelming, eventually you will get through the bankruptcy and be able to move forward with your life.