Being Underemployed, Coupled With Chicago Bankruptcy, May Make For a Brighter Future

A recent Fortune Magazine article looked at how underemployment has turned into an advantageous thing for many jobless Americans.

While finding any work right now is a good thing, consumers who are jobless and struggling with debt may consider filing for bankruptcy in Chicago while taking on a part-time job.
If you are struggling to find work and the bills are piling up, you're behind on payments, interest rates are rising and credit card fees are keeping you down, consulting with an experienced Chicago bankruptcy lawyer may be a good option for you.

Under bankruptcy laws, people who have no income or only slight income can qualify under Chapter 7 bankruptcy, where they are able to clear out all of their debt by going through the bankruptcy process.

In most cases under Chapter 7 bankruptcy in Chicago, a consumer doesn't have to lose any assets in order to qualify and reap the benefits of this bankruptcy law. This is the most commonly filed form of bankruptcy because it is a way for consumers to discharge all their debts without paying anything back.

Chapter 13 bankruptcy, however, is considered the wage earners' form of bankruptcy. This is for people who make enough money to be just out of the reach of Chapter 7 bankruptcy.

They may have large assets, such as a house and vehicles, that they want to keep and not be forced to give up in a bankruptcy proceeding to pay off creditors. They can still get rid of most of their debt through this form of bankruptcy.

Instead of having the debt discharged outright, they must set up a payment plan over 3 to 5 years. After those payments are made -- assuming no late payments -- the remaining debt is discharged.

This is where the article about underemployment comes in. Underemployment is defined as when a person who is overqualified to do a job does it anyway just to make some money, or if they work part-time jobs in order to work their way up to a full-time job.

The Fortune Magazine article suggests that because unemployment is high and jobs are scarce that people consider underemployment as a way to get back on their feet financially.

A recent query by a columnist found that using temporary work can be a stepping stone to a permanent job. This could be the first step in learning a new skill set and work your way into a new career field. Some people have considered taking college classes to learn a new skill.

The worst thing a person can do is simply give up, the report points out. Rather than stopping their search for a well-paying job, they may take a detour and still get to where they want to be.

Bankruptcy is a strong option for certain people in this poor economy. If you are in a position where you were previously making good money but had to take a lower-paying job because of layoffs, this may be a good time to consider bankruptcy in Chicago. With a lower annual salary, you may qualify for Chapter 7 bankruptcy and be able to discharge your debts and keep your assets.

If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis. Call 800-440-7235.

More Blog Entries:

1 out of 4 Chicago Consumers Have No Emergency Savings Plan: August 30, 2011

Additional Resources:

Turning underemployment into a better career, by Anne Fisher, Fortune Magazine

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