Do Bankruptcy Courts Want You To Stay Unemployed?
Bankruptcy attorneys claim that a recent 5th U.S. Circuit Court of Appeals decision that gets tough on debtors who file for Chapter 7 bankruptcy protection may have some unintended consequences. A recent judgment may actually encourage unemployed debtors who file for Chapter 7 to stay unemployed until the bankruptcy is final. Let me be frank guys, I still need some info on this one, so just take this piece of news as the introductory part of a bigger article where I explain the decision and its ramifications. Law.com reports:
The opinion "will tell someone who’s lost a job before a bankruptcy, ‘don’t get a job before bankruptcy is over,’ " says Behrooz Vida, a partner in Bedford’s Venable & Vida who represents the Cortezes. "It’s just so contradictory. That’s the problem."
Read more: 5th Circuit: Employment Status Change Nixes Chapter 7 Bankruptcy