With people losing jobs due to the coronavirus left and right, you may be wondering if you will be next. If you were next, then you might find yourself trapped in a terrifying financial situation. Whether this is the first or second time you have been laid off, there are detailed steps you can take to help secure your financial future and avoid major financial downfalls. If you have any questions about this or fears of bankruptcy, then feel free to talk with a Tennessee bankruptcy lawyer for advice.
Vital First Steps After Being Laid Off
There are several vital steps to be taken after being laid off. One of the first things you will want to do after being laid off is to do a check-up on your financial situation. See how much money you have in your checking and savings accounts, then try to calculate how much money you usually spend in a typical month, how much money you have to spend each month, and how long you can survive on the money you currently have.
What you can use this spending information for is a list of priorities. Once you have your financial priorities straight, that is, what you are obligated to spend your money on, then you can start figuring out what you can cut from your spending. This could be something simple as not going out to eat for a while, not buying movies each week, or saving more money on groceries.
Remember, this is temporary until you find another job. The goal is to conserve as many resources as you can in the meantime. Two other vital steps you can take are having a job search plan and considering unemployment benefits as a worst-case scenario. Most cities have public job centers that are designed to help quickly match you with a compatible job.
Steps You Can Take to Manage Your Finances
There are also ways you can manage your finances after a job loss by creating an effective survival budget. Creating a survival budget is often easier than enacting and maintaining this kind of budget. This process takes quite a bit of restraint and self-discipline.
A survival budget is a limit on how much money you spend while also a priority of what you will spend your money on. The golden rule of any survival budget is that you spend money on your family first, then on creditors. You have to be able to put food on the table and pay bills before you can pay debts. Contact any creditors that you may be unable to pay right away and explain your situation.
Stop paying for unnecessary bills like Netflix or a landline phone when you have a cell phone, at least until you find a job.
Bankruptcy Lawyers in Chattanooga, TN
Coming close to bankruptcy in Tennessee is daunting, to say the least. If this has happened to you, then do not hesitate to reach out to our legal team who has helped clients in Chattanooga, Tennessee and North Georgia.
Contact a Bankruptcy attorney in Tennessee today at (423) 424-3116 for a free consultation or leave us a message on our contact page. Our Tennessee bankruptcy lawyers are located in Chattanooga, Kingsport, and Tullahoma.