Bankruptcy in Honolulu from Job Loss
Dealing with Bankruptcy Caused by Unemployment
Unfortunately, the prospect of losing your job is not uncommon. Despite
being a hard worker that does what you’re asked, and even goes above
and beyond, there is always a possibility of having that taken away from you.
Layoffs, sudden changes in structure, or being fired are all possibilities
for why someone may lose their job. While it would be great if we lived
in a world where job losses occurred far less, the sad truth is that they
happen often. Sometimes they even lead to major financial strife.
When someone loses a job, they’re losing more than just that job.
They’re usually losing a major source of income that is also acting
as what they live on. Many people do not have the extra income to save
money month to month. People who live paycheck to paycheck are some of
the most vulnerable out there when it comes to job loss. A sudden change
in their life can quite literally bankrupt them.
For many people in the United States, it does. When people think of bankruptcy,
they always think it has something to do with negligence on the part of
the person who is entering bankruptcy — clearly, they didn’t
save enough money or do enough to protect their finances in case of a disaster.
In reality, in many cases, it’s just an example of bad luck happening
to good people. Especially in cases of when job losses cause bankruptcy.
As we mentioned earlier, there are many people who are living paycheck
to paycheck, and when you lose your job, it is suddenly way more difficult
to afford your basic amenities such as:
- Food
- Rent/mortgage
- Utilities
- Car payments
Many of us enter into payment deals with the intention of having a job
throughout. Rarely do you plan to lose your job. Most people who make
large purchases for something like a car or house do so under the assumption
that they are in a comfortable enough position of their life that they
can do that, but when you suddenly lose the income to pay for those expenses,
you are still stuck with them.
Don’t Take Out Unnecessary Loans
This leads to many people quickly entering debt shortly after they reach
unemployment. Even when they do qualify for unemployment checks, it doesn’t
always cover all the expenses — not to mention that you have to
make all of this money stretch to pay for these amenities along with your
bills. Grocery trips just got even more difficult if you’re trying
to feed a family.
These scenarios are why so many people who lose their jobs are suddenly
facing the prospect of bankruptcy. Their life is being flipped upside
down without steady income, and the losses can be enormous. To prevent
these losses, they try to max out their credit cards, take on loans, and
find quick fixes in the hopes of finding a new job. This only pushes them
further towards debt.
If you are unsure if you even qualify for bankruptcy, or if there are other
methods towards escaping the debt, then we will be the first to tell you.
A major part of our consultation process is seeing if you even need bankruptcy
in the first place. If we discover that there are alternatives, then we
may be able to work with you on ways to get your debts settled.
If we do decide that you need bankruptcy, then there are steps you will
need to take afterward. Those steps include required consultations. After
the required consultation meetings, we will be able to move forward with
filing for bankruptcy.
