Underemployment and Unemployment Major Causes for Bankruptcy

The two primary causes cited for bankruptcy filings are underemployment or loss of employment.

According to a recent report released by the Bureau of Labor Statistics, the amount of mass-layoffs has declined significantly since the same quarter last year, by 26 percent. While this does mark the sixth quarter in a row to show a decline in layoffs, the rate at which layoffs are occurring are still exceeding historical rates.

Since the economy has yet to recover to pre-depression rates, unemployment will continue to plague individuals across America. With the national rate of unemployment coming in at 9 percent, national economists are beginning to warn that continued joblessness could only worsen the financial state of our country.

Individuals in states like Nevada, California and Florida have been hit especially hard by the unemployment epidemic, and continue to search for jobs. Many have or will lose their homes to foreclosure, as these are also the same states that were struck the hardest by the declining housing market and increasing foreclosure rates.

If you are planning to file for bankruptcy, contact us to get help from aChicago bankruptcy lawyer.