President Donald Trump isn’t exactly known as a scrupulous man, but just a few weeks into his second term, he has already fulfilled many of the promises he made throughout his campaign. Instead of issuing pardons, he has been issuing sweeping executive orders that have drastically changed our country. Depending on your viewpoint, you may see these changes as positive or apocalyptically negative. Some people who undoubtedly aren’t excited about these changes are the thousands of federal employees who are out of work due to instructions from our new former president.
This latest move by the Trump administration targets probationary federal employees. For some federal employees, the probationary period is 2 years, but it is longer in some cases. Probationary employees have fewer job protections and don’t have the right to appeal a termination like more tenured employees. There are more than 200,000 federal employees who qualify as probationary employees and could be at risk of losing their jobs. There is also concern that these employees are necessary for a functional government, and they will have turned to new employment once that becomes evident. Many of the employees fired worked on artificial intelligence, a field that will not be on the decline any time soon. The terminations so far have been focused on the following departments:
- Department of Energy
- Department of Veterans Affairs
- Department of Education
- Consumer Financial Protection Bureau
- Small Business Administration
- Forest Services
While medical debt bankruptcy has long been the leading cause of bankruptcy in the United States, job loss has always been among the top few factors. Losing your job is also an important issue that can affect when would be most strategic to file your case. Speak to an experienced Arizona bankruptcy legal professional about these issues and any other questions you may have today- call today for your free consultation at 602-609-7000.
Falling Behind On Bills After Job Loss
After losing your job, it’s smart to assess your budget and decide which items and activities you can forego until you find new employment. In most cases, the number one expense that you should keep up-to-date is your housing, whether that’s a mortgage or rent. If you fall behind on your mortgage, your lender can start the foreclosure process against you. Losing your home comes with enormous financial and emotional costs, and it can be hard to save up for a new down payment, or even a security deposit, while dealing with these other issues. If you are evicted from a rental unit, you can be added to a landlord blacklist that will make it almost impossible to rent for 7 years. Your lender or landlord needs to provide notice before initiating the foreclosure or eviction process, so you should have at least a few weeks to address the issue if you fall behind on your housing expenses. Filing for bankruptcy can stop a home foreclosure and it can stop an eviction if it hasn’t yet proceeded to the possession phase.
If you need your car to get to work, school, the grocery store, etc., your vehicle may be your next most important asset and expense. Many auto loan agreements give lenders the right to repossess a vehicle as soon as the borrower misses a payment, so this is another expense to keep high at your list of priorities with a tight budget. Filing for bankruptcy can stop a vehicle repossession and even allow you to negotiate a more favorable post-bankruptcy agreement.
Priority debts, as the name suggests, should remain a priority, regardless of your financial situation. Some debts can’t be cleared by bankruptcy, so letting them fall into arrears isn’t something that your filing will fix. For example, if your wages are being garnished for child support, the garnishment will only stop for a full payment chapter 13 bankruptcy filing, but not a chapter 7 filing. Priority debts, including familial obligations and certain tax debts, should be paid in favor of non-priority debts, like medical bills and credit cards, when times are tight.
Want to review your monthly expenses to determine which are the most important to pay if you file for bankruptcy? Our firm offers free consultations by phone for Arizona residents seeking debt relief. Schedule your free consultation with one of our dedicated bankruptcy lawyers today at 602-609-7000.
When To File Your Bankruptcy
Filing for bankruptcy right after a job loss might seem like a good idea, because it activates the automatic stay, which protects you from creditors. But unless you are facing an immediate form of creditor collection, you might want to hold on filing for at least a little bit. When you file for bankruptcy, it clears debts accrued up to your filing date. Any debts accrued after this date will not be cleared by your bankruptcy filing. Many people rely on credit cards and other lines of credit to pay for necessities after a job loss. If the debtor waits until they find a new job to file their petition, they can maximize how much debt is discharged by their filing.
Another factor to consider when filing for bankruptcy after job loss is how it will affect your average monthly income. Bankruptcy courts consider your last six months of employment when determining your income level. If you file for bankruptcy immediately after losing your job, your average monthly income could be much higher than if you wait a few months to file your case. If you’re right on the threshold of qualifying for chapter 7 bankruptcy, this could be the factor that makes or breaks your case.
Every bankruptcy case is different, and it’s impossible to state how to time the filing of your case without considering factors that are unique to your situation. You can file your bankruptcy with more confidence when you have had your potential case assessed by an experienced professional. Schedule your free consultation to learn more about the bankruptcy process in Arizona by calling 602-609-7000.
Affected By Job Loss? Considering Bankruptcy? Start Your Search For Reliable Representation With Our Firm.
If you’re in the midst of unemployment, battles with your creditors, and searching for a new job, conducting thorough research and drafting a full and accurate bankruptcy petition can be a daunting task. Making errors throughout your case can result in delays, dismissal, lapses in protection from the automatic stay, the seizure of your funds and assets, and in extreme cases, prosecution for bankruptcy fraud. Filing your bankruptcy with an experienced attorney backed by a reputable law firm takes the burden off of you. This gives you more time to focus on your job hunt, or whatever is your most pressing issue at the moment. You may also benefit from waiting to file your case. Just because it isn’t time to file your bankruptcy yet doesn’t mean you shouldn’t start preparing under the supervision of a skilled bankruptcy lawyer. Have your case evaluated for free by one of our Arizona Zero Down bankruptcy lawyers– our consultations are free of charge and eligible clients can file their cases for Zero Dollars Down. Get started today at 602-609-7000. Don’t hesitate to contact us today!
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