I’ve Lost My Job; Should I File for Bankruptcy?

5004921106_3a29745800_zImage credit: Michael Duxbury

So, you’ve been laid off or fired from your job. It’s very true that leaving a job, whether voluntarily or involuntarily, can be a very stressful time in anyone’s life, and can even be quite traumatic when the job loss was not your choice and/or was unexpected. It’s important to take a breather so that you can mourn the loss of everything that you had invested in your job – things like your professional identity, daily purpose, work friends, and more. Take some time to recover from the shock before making any significant financial decisions.

Once the shock has worn off, and you feel that you have at least partially come to terms with the fact that you are now unemployed, the first thing that you should do is explore your unemployment benefits and determine exactly how much money you will be entitled to at this time. Apply for unemployment benefits as soon as possible after being laid off or fired. This will ensure that start receiving your benefits in a timely manner, which will enable you to focus on the following.

After you’ve determined your unemployment benefits status and have applied appropriately, it’s crucial that you begin thinking about all of the ways that you could possibly make money at this point in your life. Your first thought should not be to file for bankruptcy – it should be, “How can I get back into the job market ASAP?” Research shows that those people who remain unemployed for the shortest amount of time are the ones who got back on the horse and started looking for a new job right away.

Remember to network constantly – online and in person. Make sure your resume is up to date and consider having a professional resume service review it. Although this will be an additional cost that you may not feel is a necessity, it can be the difference between getting hired and remaining unemployed.

After you have put your job search into motion, your next item of priority is to look around you and decide where you can most easily and effectively lower some of your regular expenses. Look for big items that can be reduced temporarily, such as your cable or satellite bill, cell phones, gym memberships and other expenses that aren’t absolutely necessary for survival.

It is possible that some of your creditors will reduce or suspend some of your debts during a time of extreme hardship, such as an extended period of unemployment. While you are hoping to get back into the job market quickly, if that doesn’t happen right away, an experienced credit repair attorney can help you negotiate with your lenders/creditors in order to suspend or reduce payments until such time as you are fully employed once again.

While talking with your credit repair/bankruptcy attorney, he will also be able to advise you on when and under what circumstances you should consider filing for bankruptcy. Every case is unique and will have different extenuating circumstances. To speak to an attorney regarding your unemployment and financial concerns, call the Veitengruber Law office at (732) 852-7295, or write to us today.

6 Responses to I’ve Lost My Job; Should I File for Bankruptcy?

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