Leading Pensacola Bankruptcy Attorneys Share Unemployment and Bankruptcy Regulations

PENSACOLA, Fla. – Leading Pensacola bankruptcy attorneys, Martin Lewis and Steven Jurnovoy, have become a pillar of reliable, consistently helpful advice to their clients and community. Now more than ever, with unemployment rates skyrocketing due to the national pandemic of Covid-19, they deem it crucial for the community to be aware of the unemployment situations regarding filing for Chapter 13 or Chapter 7 bankruptcy.

According to the Wall Street Journal, a record 3.28 million workers applied for unemployment benefits last week as the new coronavirus hit the U.S. economy. Social distancing and stay home orders have brought a decade long growth of employment to a screeching halt. The number of Americans filing claims was nearly five times the previous record high over the course of March alone.

Although bankruptcy rules don’t specifically require filers to be employed, past and present income status can have an effect on the ability to be eligible for both Chapter 7 and Chapter 13 bankruptcy in entirely different ways. A person might not qualify for Chapter 7 bankruptcy if they have recently lost a high-earning salary. Additionally, unemployed people won’t be eligible for Chapter 13 if the lack of employment income will prevent them from paying into a repayment plan.

In general, filers do not have to be working to file for bankruptcy relief. Bankruptcy lawyers in Pensacola urge those in the local area who have lost jobs or are experiencing a decrease in income and are having trouble meeting their expenses or debt payments to contact them for further discussion regarding their financial options during this trying time.

For more information about how to protect financial information from theft or fraud, contact the offices of Lewis and Jurnovoy, P.A. at (850) 432-9110 or visit their website: www.lewisandjurnovoy.com.