The loss of a job is always devastating, throwing one's life into disarray and uncertainty. It can also be a major factor in the decision to seek personal bankruptcy. As the economy continues to sputter along for many people, these concerns remain a daily fact of life. While the news related to jobs and the economy is often grim, there is hope for people in Boston, both in the economy and in the legal options available to people needing relief from their debts.
A recent report by Fox 25 in Boston looked at job outsourcing by Boston businesses and its effect on jobs and the local economy. The report mentioned specific companies that have cut a substantial number of jobs in the Boston area while setting up operations in China. Some companies are opting to move jobs elsewhere in the country. Fidelity Investments recently moved around 1,100 jobs to Rhode Island and New Hampshire. Statewide, Massachusetts is losing middle-income jobs to competition overseas and within the United States, although it may be gaining more specialized high-tech jobs. According to the U.S. Department of Labor, Massachusetts' overall unemployment rate is dropping, from 8.3 percent in September 2010 to 7.3 percent in September 2011.
A Boston Globe article examines the related issue of seasonal retail employment. Competition for these jobs is greater than ever, as job seekers with advanced and professional degrees have thrown their hats into that ring, figuring that a part-time retail job is better than no job. People entering their second (or greater) year of job searching may expand their search, and seasonal employment has become a sought-after prize.
How does this relate to personal bankruptcy? As people find themselves living below the means to which they had become accustomed in their previous jobs, obligations they took on back then may become difficult to maintain. Mortgages and credit card bills may no longer be serviceable at a part-time retail salary. People who lose a job often also lose health insurance, and they might decide that the money they earn is better put towards current or future medical expenses rather than continuing to pay for past expenses that they can no longer afford. Of course, they signed contracts, and they cannot just walk away from their debts. If the debts become more than they can expect to pay in the foreseeable future, this is when personal bankruptcy may be the answer.
Personal bankruptcy allows a person to develop a plan to resolve all or as many of their debts as possible. Chapter 7 bankruptcy allows a person to discharge their debts in exchange for allowing the court to sell off some assets over a certain amount. Because these threshold amounts are generous, most people do not end up losing any assets, while still discharging their debts and getting a clean slate at the end of the bankruptcy process. Chapter 13 bankruptcy allows a person to repay a portion of their debts while restructuring others, like unfavorable car loans, second mortgages, and past due taxes. The goal under either Chapter is to deal with debt in a sustainable and manageable way.
Boston bankruptcy attorney Dmitry Lev guides people through the often complex process of Chapter 7 and Chapter 13 filings. For a free and confidential consultation, contact the firm through our website or at (617) 556-9990.
Local Area Unemployment Statistics, Bureau of Labor Statistics, U.S. Department of Labor
More Blog Posts:
Boston CEO's Bankruptcy Leads to Sale of Multi-Million Dollar Home, Boston Bankruptcy Attorney Blog, October 19, 2011
Bad Housing Market Leads to Decrease in Boston Personal Bankruptcy Filings in 2011, Boston Bankruptcy Attorney Blog, October 6, 2011
The foreclosure that never was, Boston Bankruptcy Attorney Blog, February 11, 2009