Bankruptcy is important source of relief as job recovery still lags
I still remember the recession when Jimmy Carter was president. I would go to the houses of family friends and literally hear parents cursing Carter for their economic stress. Families got through that recession doing the same things that many people are doing right now. Parents diluted the milk to stretch a gallon. They figured out how to make a family meal for under $5.00 with buttered noodles or beanie weenies. They got second, and third, jobs until the recession finally washed through and they could get back to financial normalcy.
Even though the strategies are similar, this recession has turned out to be fundamentally different because it just doesn't seem to end. Even with positive reports trickling in about Wall Street and the recession is over or "close to over," everyone still feels the effects. The rebound hasn't arrived, and isn't expected anytime soon. Detroit in particular is feeling the pain. The Wall Street Journal reports that the unemployment rate in Michigan is now 15.2% and 17.7% in Detroit. To save themselves from bankruptcy, automakers slashed thousands of mid-career jobs. Tom Boileau, for example, spent 35 years with Chrysler. When he was laid off, his annual salary was around $110,000. Now he earns $500 a week as a hockey coach. Other misplaced workers have also taken substantial pay cuts. They aren't living with a false hope that they will make $100+ this year; they are just hoping that someone will talk to them about the possibility of a job.
Like the rest of the unemployed workers, they have cut expenses. They are seeking part-time and one-time jobs to cover the basic bills. The irony of their crisis is that the major automakers saved their companies through bankruptcy, yet many workers are still reluctant to file for a personal bankruptcy to save their personal finances. When your income has been cut the bone, you need more than buttered noodles or a part-time job to make it through. The most important benefit of bankruptcy is that it gives you a financial fresh start while you are waiting for a fresh start in your career. If there are any lessons to be garnered from the Detroit experience, it is that trying to rebuild your finances from nothing while re-booting your career at the same time is a virtually monumental task. When you contact a bankruptcy attorney, they can walk you through the steps of bankruptcy.
Once you file your bankruptcy petition, the attorney then becomes your financial advocate and helps you design a relief plan through the bankruptcy petition. Essentially, you're getting a partner in your financial recovery. While your partner assumes a chunk of the relief duties, you then have more emotional energy to dedicate to rebuilding your career. The automakers didn't get through their crisis alone. The banks didn't get through their crisis alone. You don't have to go through yours alone either. Consider talking to a qualified bankruptcy attorney in your area about the benefits of bankruptcy today.