Written by Craig D. Robins, Esq.
Substantial Earners Are Coping with Recessionary Layoffs by Filing for Bankruptcy
There have been some massive job layoffs in this deep recession, even for professionals and upper level executives. Consequently, many recently-laid off workers are being forced to rethink their professional identities, their personal relationships and how they will manage their existing debt.
The current financially-plagued economy seems to be sparing no one. Even white-collar workers with advanced degrees, working at prestigious companies, are not immune. Anyone can lose a job. Wall Street firms have not been kind; advertising and retail are suffering greatly, and many question the viability of garment industry jobs remaining in New York.
According to studies by organizational psychologists, white-collar men tend to experience unemployment differently. For them it is sometimes difficult to adapt and find a job to provide income if that income is significantly less. Grappling with joblessness inevitably entails surrendering an idea of who they are. Negative emotions abound. I’ve previously written about the Eight Steps to Cope with Emotional Issues During Bankruptcy  as well as The Emotional Side of Debt and Bankruptcy .
To those who qualify, bankruptcy can often provide a solution for eliminating substantial debt. This usually has a very positive effect on the psyche, eliminating a large source of anxiety and depression.
The bankruptcy option should be discussed and considered well before the raiding of 401-K and other retirement accounts. (See Are Pensions Protected in New York Bankruptcy Cases? ).
In my Long Island bankruptcy law practice, I frequently see clients who previously earned six-figure incomes. Bankruptcy can provide an opportunity for a fresh new financial start and remove some of the pressure of finding new employment.