Job Loss and Debts
The Utica Observer Dispatch reported that cuts to the Utica City School District in the 2014-2015 budget would lead to as many as 94 job layoffs. The termination of teachers and other staff members due to budget cuts is not a new phenomenon in Utica. The prior year, 91.5 positions had to be cut. Over a period of two years, this means more than 185 employees were let go.
Aside from the impact these layoffs have on the effectiveness of public schools in Utica, they also have profound economic consequences for the local area as more people are out of work and the economy suffers. Of course, the biggest impact of the layoffs is on the individuals and families in Utica who no longer have a paycheck coming in.
The vast majority of American families are not able to financially withstand a layoff. As CNBC reported, 62 percent of Americans do not have enough money set aside to deal with even minor unexpected expenses. A Bankrate report showed that around 24 percent of Americans owe more money on credit cards than they have set aside in emergency savings, and the Huffington Post reported that almost half of all Americans have set aside less than $500 in savings.
Stagnant wages, high interest rates, high unemployment and a host of broad social issues have created the conditions leading to so few people having money set aside for a rainy day. Regardless of the reasons, however, the basic fact is that when layoffs occur in Utica to either public sector or private sector workers, there is typically not enough money to pay all the bills that come in.
A Bankruptcy Attorney in Utica Can Help
If you sustain a job loss or another financial setback and you become unable to pay your bills, a Utica bankruptcy attorney can help you.
Contacting an attorney as soon as you realize you are not going to be able to pay your debts is advisable. Once paying the bills becomes difficult due to a job loss or unexpected financial setback, you could find yourself paying late fees or over-the-limit fees on credit cards and other forms of debt.
The money you pay each month may do little to lower the premiums and is money that you could perhaps put to better use. If you aren’t making a dent in bringing down the principal, you are just throwing money away – and you may end up eventually having to file bankruptcy anyway.
Rather than spending months struggling to send the minimums, it may be a wiser choice to file bankruptcy sooner rather than later. This allows you to focus on everyday living expenses and start the process of improving your credit, since your debt will be discharged in the bankruptcy filing.
If you wait to file, negative reports from your unpaid debts could show up every month on your credit report, dragging your score down. Once your bankruptcy discharged, the negatives won’t continue to post anymore and you can begin the process of rebuilding credit rating.
To learn more about whether bankruptcy is the right choice for you after a layoff or other financial setback, contact Jeffrey J. Randa, a bankruptcy attorney for Utica today.