According to an article in the Dallas Morning News, General Motors officially announced that it will temporarily close 13 assembly plants in the U.S. and Mexico. GM workers at the Arlington, Texas plant will also suffer a temporary closure with over 2,000 workers facing furloughs.
The article said:
General Motors Corp. said Thursday that it will temporarily close 13 assembly plants in the U.S. and Mexico - some for more than two months - to pare back bloated inventory. GM's Arlington assembly plant will close for nine weeks beginning May 11.
More than 26,000 workers will face furloughs that will definitely impact their household budgets. I wonder how many of these workers are living paycheck to paycheck. I wonder how many of them are already contemplating bankruptcy or walking away from a mortgage. For many Americans, facing an income loss or even an income reduction for nine weeks could bankrupt them.
I don't think GM workers are any different than other Americans who have faced job losses, income reductions, foreclosures and bankruptcy. This work stoppage will probably put many of them face-to-face with delinquent bills, depleted savings, foreclosures and even bankruptcy. But they are not alone, this can and is happening to many Americans as businesses get creative in their efforts to cut costs and avoid bankruptcy.
Are you prepared for a temporary work stoppage? As the economy worsens, income reduction, benefit cuts and temporary business closures are becoming more common in lieu of job losses. Job losses cost employers when unemployed workers file for unemployment insurance. One way to avoid that cost is to simply reduce workers wages, hours or benefits when possible. You need to be prepared for this possibility because you are only eligible for unemployment if you've experience a job loss.
Take a look at your budget. Are you living paycheck to paycheck, unable to save and drowning in debt? You may want to consider bankruptcy to give yourself a fresh start and help you prepare for any possible job loss or income reduction in the future. Contact a Dallas-Fort Worth bankruptcy attorney today to find out more about your bankruptcy options.