For many Americans, a sudden and unexpected loss of income has resulted in a severe financial setback. As reported by CNBC, a survey revealed that 38% of individuals do not have enough funds saved to get them through one month.
Without the ability to get back to work and earn money within a reasonable amount of time, an individual may turn to bankruptcy for relief.
Older Americans may not be able to find new employment
Based on the CNBC news report, approximately 20% of workers over the age of 60 remain unemployed. Uncertainties regarding a return to their former jobs have contributed to many newly unemployed individuals’ thoughts of an early retirement.
The Bureau of Labor Statistics reports that the available open positions would accommodate only a third of the unemployed labor force. Accordingly, older workers may decide to stay out of the workforce instead of competing with so many others for the possibility of a job.
A high-volume debt load contributes to a surge in unemployed boomer bankruptcies
Boomer-generation Americans considering an early retirement may need to begin preparing a revised budget to handle their changing finances. The longer an individual stays unemployed, however, the further behind he or she may fall in making consumer-debt payments. To get back to work, many boomers may also need to become more proficient in the tech skills employers currently seek.
A fresh start through a personal bankruptcy may wipe away the burden of consumer debts such as high-interest credit card bills. A bankruptcy petition could provide an unemployed individual with a chance to live within a workable budget or develop a realistic retirement plan.