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Layoffs may prompt many to seek debt relief

by | Apr 6, 2020 | Firm News

Losing a job can be devastating, especially when it comes unexpectedly. Many in Michigan are in this situation as companies lay off workers in unprecedented numbers. Facing a layoff means having to come up with a plan as quickly as possible to avoid financial disaster and possibly seek debt relief.

The closing of one business does not mean there are no opportunities for work. In many cases, a layoff is temporary, and the worker may take another job to make ends meet until things improve. However, it is essential for a laid off worker to cut back on unnecessary expenses and create a spending plan that will keep track of where the money goes. This may mean cooking at home more, being mindful of waste and avoiding major purchases.

Unfortunately, if a layoff comes when finances are already on the edge, the job loss may be the last straw. On top of the stress of a layoff, one may now be dealing with collections. Missing one payment on a vehicle loan or mortgage can result in threats of repossession, foreclosure or lawsuit for delinquent debt. In such a situation, a temporary part-time job may do little to keep a budget balanced.

Those in Michigan who are dealing with economic hardship, including job loss or layoffs, may think they are out of options. However, there are resources available to help people through difficult financial times. One such resource is a skilled and compassionate attorney who can explain the various options for debt relief, including the possibility of filing for bankruptcy to seek the discharge of certain debts.