A study published by the Center for Workforce Development at Rutgers University reveals what many of us already knew:  prolonged unemployment can traumatize a worker’s personal and financial wellbeing.  Specifically, the study notes that the combination of seeking new employment, in a tight job market, and prolonged unemployment has many feeling “traumatized” by the recession.   The responses provided demonstrate the extent of the financial strain.  Only forty percent of the participants received unemployment.  Approximately half did not have health insurance.  Many have missed mortgage payments or rent obligations.  But probably the most distressing number…. Sixty percent experienced job loss with no warning.

This recession hit a broad range of people hard and deep.  One of the co-authors of the report compared this recession to the “Katrina” of all recessions and explained, “Folks are on their rooftops without a boat. The water is rising, and many see no way out.”  Some economic indicators suggest that the economy is improving, but it is clear that the ordinary frontline employee was the hardest hit and will continue to feel the effects of the recession for several months or years.  Even with stimulus programs, consumers are still struggling with things like mortgage payments and utility bills.  Even more distressing for consumers is watching corporate executives continue to receive inflated bonuses while they struggle with choosing between buying groceries or school supplies this month.

Despite the general feeling that there is no way out, there are options available to consumers.  You do not have to drown in debt.  Bankruptcy has been a literal life boat for many people who were facing foreclosure and constant collection calls.  Unfortunately, many people try to pull themselves up by the bootstraps and face more adversity alone.  They take the constant harassment by bill collectors, alone.  They sign for the foreclosure notice, alone.  They look for another job, knowing that they may not have a home in another month or so.  But the truth is that they don’t have to face these issues alone.  Bankruptcy won’t get you a new job, but it can be the beginning of a fresh financial start.  It can help alleviate the financial trauma that comes with wondering if you’re going to have a home next week.  It can also prevent the debt collector from calling your house and stressing your family further.  Just getting a handle on your financial situation can then help you get refocused on the other issues.  You didn’t plan for a job loss or this recession, but with a qualified bankruptcy attorney, you can make plans for a financial fresh start.