A recent report gave more identity to the long-term unemployed, or those who have been jobless for more than 26 weeks. In Florida, Alaska, California, Illinois, North Carolina, New York, Connecticut and Rhode Island, between 46% and 60% of the jobless are long-term unemployed. 14% of these workers were in wholesale or retail trade; services, hospitality and manufacturing workers were also in double-digits. Statistically speaking, most of these displaced employees are between 25 and 34.
In his most recent State of the Union speech, President Barak Obama highlighted long-term unemployed and asked that American companies not discriminate against the jobless when making hiring decisions.
Unemployment and bankruptcy
Many jobless turn to seasonal work or day-labor in an attempt to keep some money coming in. In terms of motivations for filing bankruptcy, unemployment has taken a back seat to medical bills in recent years. Nonetheless, the unemployed are still highly at-risk for filing bankruptcy:
- When cash becomes scarce, many families begin borrowing money to make ends meet. Many times, this debt is credit cards or perhaps payday loans.
- Other families stop paying their unsecured debts altogether and commit all their funds to secured debts.
- A near-universal effect is that families liquidate their savings, making them very vulnerable to financial emergencies.
Factors that lead to a bankruptcy filing, such as medical bills and unemployment, are hardly ever your fault. But, you must still take charge of the situation to keep it from getting worse. Consumer bankruptcy can eliminate excess debt and get you back on the right track.
To take charge of your pocketbook, contact us for your free consultation.