One of the most traumatic events that can happen in life after bankruptcy is job loss. After all, many people view bankruptcy as the first step toward improved finances and financial habits. But losing a job after bankruptcy can sour even the best-laid plans.
Job loss after filing a Chapter 13 case can be particularly troublesome because Chapter 13 protection is dependent on the filer making regular payments according to a repayment plan. Here's a look at what Chapter 13 filers should expect in the case of job loss.
Job loss after a Chapter 7 bankruptcy can be problematic as well. Without regular income, it can be difficult to afford essentials like food, shelter and utilities. One potential problem is that Chapter 7 filers are only eligible to file for Chapter 7 protection once every eight years, meaning that any debt incurred during a period of job loss must be repaid at some point in the future.
Those who lose their jobs after a Chapter 7 filing may want to consider the following:
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