You may have been unfortunately laid off from your job due to your company’s budget cuts or other extenuating circumstances beyond your reasonable control. At the same time, the job market may be particularly challenging at the moment, and you may have trouble bouncing back and finding a new employment opportunity right away. Even though you may be collecting unemployment benefits, this may not be nearly enough to cover your monthly expenses. Ultimately, in this perfect storm, you may find yourself on the brink of going bankrupt. Well, please follow along to find out whether you can file for bankruptcy if you are currently unemployed and how a proficient Rockland County Chapter 7 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can help you get out of this financially difficult time.
Can I file for bankruptcy if I’m currently unemployed?
Understandably, you may be hesitant as to whether the New York State bankruptcy court will accept your petition if you cannot show that you currently have a job. Well, you may rest easier knowing that you likely qualify for a Chapter 7 bankruptcy case no later than six months after your job loss. This is in part due to the Chapter 7 means test. Here, you will add together the gross income earned by all your household members during the full six months immediately before your bankruptcy filing date. Then, you will compare it to the state median income for your household size. For example, for a four-person household in Rockland County, as of 2025, the median income is approximately $11,203 per month. If your earned income is below the median income, you pass the test and may proceed with your Chapter 7 bankruptcy case.
What happens if I get a new job during my bankruptcy case?
Your current job loss may at least get your foot in the door, so to speak, for a Chapter 7 bankruptcy case. However, your eligibility may shift if you happen to get a job offer in the midst of your case proceedings. This is because you are legally obligated to report your new job to your appointed bankruptcy trustee. From here, they may request that you amend your submitted bankruptcy forms, namely Schedule I: Your Income, and Schedule J: Your Expenses. If your trustee finds that your new income now greatly exceeds your monthly expenses, they may recommend to the New York State bankruptcy court that your case be converted to a Chapter 13 bankruptcy. Or, they may argue to have your bankruptcy case dismissed altogether. This may not necessarily be a bad thing, as you may not have to carry a bankruptcy record with you for years to come.
In conclusion, if you find yourself in need of legal aid, look no further than a talented Rockland County bankruptcy attorney. Whether you simply have a legal question or require legal representation in an upcoming court case, our team at The Law Offices of Allen A. Kolber, Esq., P.C. is willing to help out. Please pick up the phone and call us today.
