New Year, Uncertain Future
New Year, Uncertain Future
With the labor market softening and inflation markers providing an unclear economic picture, there are some unpleasant choices facing many Americans in 2026.
Amazon recently laid off 1800 engineers and 14,000 corporate jobs. According to numerous news sources, Amazon has plans to reduce its human resources staff by 15%. Unfortunately, almost all technology companies have reduced their labor force or are planning substantial layoffs in the coming year. On top of that, inflation data has been sporadic. And sometimes surprising to economists. Lower than expected inflation markers are hard to reconcile with the current trade policy.
For many people faced with a job loss, things appear seem bleak. For some, bankruptcy may offer a welcome reprieve from the financial pressures. Most people who file for bankruptcy do so reluctantly, generally after months of trying "to make it work". However, it is important to know that this may be the right option for some who find themselves without a job, yet expected to cover the increased costs of life.
There are two types of consumer bankruptcy filings: Chapter 13 and Chapter 7. Chapter 13 bankruptcy is a process by which a person can reorganize his/her debts for repayment purposes in a manner that is more manageable. In this type of bankruptcy, the main residence is generally retained. It is intended for individuals who have an income, albeit an insufficient one. A typical Chapter 13 bankruptcy lasts 3 to 5 years, depending on the length of the repayment plan approved.
On the other hand, a Chapter 7 bankruptcy is a way to discharge most unsecured debts. This is intended for individuals who may not have a steady source of income. This bankruptcy provides more relief, but has more stringent eligibility requirements. In a Chapter 7 bankruptcy, the filer may be able to retain their primary residence. This determine revolves around several issues, including the amount of equity in the home, whether they can afford to make mortgage payments, and whether the mortgage is in default. Once filed, the process is usually completed in between three to five months.
At Brim Law, we can work with you to determine if bankruptcy is best for your situation and assist in seeking this relief. We look forward to helping you.