There are many phenomena that can be observed to get a gauge on how the economy as a whole is doing. Some might focus on the stock market, while others might look at home prices or the inflation rate. Another common way to measure the economy’s success is looking at the employment rate, or rather the rate of unemployment claims. When people file for unemployment, it is because they lost their jobs versus quitting or retiring. Unemployment benefits are generally only a fraction of what that person earned at their former job. Job loss usually leads to financial problems, and this only becomes more true if that person was already living paycheck-to-paycheck. This means that sudden increases in employment claims can be cause for concern. 

Unemployment claims for the week ending February 22, 2025 increased by 22,000, up to 242,000 claims as compared to 220,000 claims the week prior. This was an adjustment made after the Dow Jones previously estimated 225,000 unemployment claims. The most new claims were made in areas affected by President Trump’s mass layoffs of federal workers, like Washington, D.C., and New England, like Rhode Island and Massachusetts. Trump has also announced tariffs on Canada, Mexico, and anyone else who crosses him. Sales of durable goods like appliances, computers, and aircraft parts increased by 3.1%, likely a move by companies to cut costs before tariffs go into place. The 25% duties that are expected to increase the costs of these goods become effective on March 4, 2025. 

Whether you’ve been affected by job loss, skyrocketing inflation, or any other economic pressure that causes you to accrue debt, bankruptcy may be of assistance to you. Our Arizona Zero Down Bankruptcy Firm offers knowledgeable and compassionate bankruptcy services in Phoenix and Tucson, with payment plan options starting at Zero Dollars Down. Schedule your free consultation today by calling 602-609-7000. 

Attorney reviewing legal documents related to unemployment claims and bankruptcy assistance

How To File An Unemployment Claim In Arizona

To collect unemployment benefits in Arizona, you must have lost your job through no fault of your own. Unfortunately, this is only meant to cover when it is no longer financially convenient for an employer to maintain their workforce, like company downsizing or laying off employees due to lack of work. It is not meant to protect employees who are let go due to factors like poor performance. When it is unclear whether the employee was terminated through no fault of their own, a determination will need to be made on the matter in accordance with Arizona law. 

Someone seeking to file an unemployment claim in Arizona must provide certain information to confirm their eligibility and how much they will receive. Some of this information will only apply in limited situations. These items include:

  • A driver’s license or other state-issued identification
  • Social Security number
  • Mailing address and county of residence
  • Employment history
    • Names and contact information of all employers from the last 18 months
    • The last day the employee worked
    • How much the employee earned before deductions
    • Any severance, vacation, holiday, or unused sick pay
    • The name and local number of any union hall
    • The start date and monthly benefit amount of any pension amount besides Social Security
  • Alien Registration Number
  • A DD214 form for recent military service members
  • For recent Federal civilian members, a copy of Standard Form 8 or Standard Form 50

A person filing for unemployment benefits should be contacted about the determination of their benefits within approximately one week of filing their application. If unemployment has you considering filing for bankruptcy, you should discuss your situation in greater detail with an experienced Arizona bankruptcy lawyer. Schedule your free consultation with a dedicated member of our firm today by calling 602-609-7000.  

What Are The Leading Causes Of Bankruptcy?

If you are out of work or have struggled in the past with prolonged unemployment, you might be biased toward thinking that this is the leading cause of bankruptcy. It is true that dealing with unemployment, or even underemployment, can cause debts to pile up, which may eventually result in a bankruptcy filing. But there are several other top causes that debtors cite when filing for bankruptcy. If you’ve ever experienced an unexpected medical event like an illness or injury, you might have an idea of what might be the leading cause of bankruptcy in the United States- medical debt. Approximately 2/3 of bankruptcy debtors in the United States list medical debt as at least one of the reasons they sought debt relief. This equates to about 530,000 families across the country declaring bankruptcy due to medical issues per year. High medical costs create debt, but time out of work can exacerbate these financial problems. 

The second leading cause of bankruptcy in the United States is home foreclosure. Falling behind on a home mortgage is a reason that 45% of American bankruptcy debtors file their petitions. The automatic stay can stop a home foreclosure up until the sale actually occurs. Trailing just behind home foreclosure as a cause for 44% of bankruptcy filings is living beyond one’s means. Financially helping loved ones is the fourth leading cause of bankruptcy, followed by student loans, and divorce or legal separation. It’s entirely possible to be affected by more than one of the leading causes of bankruptcy across the United States. If you have questions about how filing for bankruptcy in Arizona might improve your financial situation, call 602-609-7000 to schedule your free consultation with our firm. 

Create A Shield Against Creditors With The Automatic Stay

If you are accruing debt due to being out of work, it is usually most strategic to wait until you find new employment to file your bankruptcy petition. This is because your debts are only cleared up until the date your petition is filed. But every situation is different, and it may be more important that you activate the automatic stay than wait until the last possible moment to file your case. Some of the impending collection efforts that that automatic stay can halt include:

Unemployed And Drowning In Debt? Bankruptcy Might Be The Solution. 

When the unemployment rate increases, one can expect that the bankruptcy rate may increase shortly afterward. If a person loses their job and relies on unsecured lines of credit like credit cards to make ends meet, these are fairly simple to clear in bankruptcy. But there are certain limits that must be observed, or debts could be excluded from bankruptcy discharge. That’s why if you should consult with a bankruptcy attorney as soon as possible after losing your job, even if you only view bankruptcy as a possibility. That way, you can maximize your benefits if you do decide to file, and be prepared in case any emergency circumstances that necessitate a fast filing arise. Our Zero bankruptcy lawyers know exactly how to help clients in a wide variety of situations address their financial issues. We make the process as convenient and affordable as possible, starting with your 100% free consultation by phone. If bankruptcy is a fit for you, we can provide you with payment plan options starting as low as Zero Dollars Down for eligible clients. Get your bankruptcy questions answered today by an experienced professional- call 602-609-7000 to schedule your free consultation.

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Arizona Offices

Phoenix Location:
343 W Roosevelt Street, Suite #100
Phoenix, AZ 85003
Email: [email protected]
Phone: 602-609-7000

Mesa Location:
1731 West Baseline Rd., Suite 101
Mesa, AZ 85202
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Glendale Location:
20325 N 51st Avenue, Suite #134
Glendale, AZ 85308
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Tucson Location:
2 East Congress, Suite #900
Tucson, AZ 85701
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