Has sudden job loss left you with financial problems?

| Oct 6, 2019 | Firm News |

When you first got your job, you may have envisioned yourself creating a career and moving up the ranks of the New Jersey company until you reached the highest position possible. You likely hoped that your drive and ambition would help you excel and achieve those goals. Unfortunately, despite your best efforts, a sudden event derailed those goals.

When your boss called you into his or her office, you may have hoped that the time had come for you to receive a promotion. Instead, you received the disheartening news that the company was letting you go. You may have never planned for such an outcome, and now, you understandably feel lost.

What happens now?

Unfortunately, if you did not have a backup plan, you may face a series of difficulties in the wake of your job loss. For instance, if your company provided you with health insurance and other benefits, it is likely that you will no longer have access to those benefits. Additionally, your source of income will also come to a halt. Even if the company offers you severance pay, it may not be enough to last more than a couple of weeks.

Hopefully, you have some savings that can see you through this hard time, but if not, you may face financial stress. You may also want to look into potentially drawing unemployment benefits to see if you qualify. However, it is important to remember that receiving these benefits will likely only provide you with a fraction of the income you were generating.

What can you do?

Job loss can have significant impacts on your mental health, so it is understandable if you find yourself feeling down, hopeless and unmotivated in the days or even weeks after. Still, it is important that you look for new employment as soon as possible. If you have to go a considerable length of time without generating an income, your financial affairs could worsen.

Unfortunately, losing your job can begin a downward spiral of financial hardships. Even if you try your best to find a new job and limit your spending as much as possible, you may not be able to keep your finances on track. If your situation becomes too overwhelming, you may want to look into filing for bankruptcy. While this option may not seem ideal, it could help you find more stable financial footing.