New jobless claims spiked 55 percent in Georgia over last year’s numbers in a state Labor Department report issued December 12 2008. The report states that 74,480 Georgians filed first-time claims during November. The report estimates that 350,000 people in the state are looking for work.

Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University, told Michael Kanell of the Atlanta Journal Constitution in November that the economy, officially in recession since last December, is not likely to recover until late 2010.

The directors forecast is for a long recession, but not a deep one. Cold comfort for the thousands of Georgia residents already out of work or afraid for their jobs. What is worse he siad that the recovery would mirror the jobless recoveries that followed the economic recessions in 1990-91 and 2001.

He predicted that since the Atlanta Metro area makes up two-thirds of the state’s jobs, it would also make up a large part of the job losses.

Keeping on top of your financial situation is key to surviving an economic downturn. Preparing for the prospect of job loss by saving is important. Having a plan for when the savings runs out is also important.

Keeping up with the payments on your debt can be difficult. House payments, car payments, utilities, credit cards and the list goes on and on. If your have been caught off guard by a job loss, you could end up bleeding your savings, 401k and retirement before you know it.

You should consider bankruptcy to keep you in your home and protect your retirement savings. Exemptions available to you in bankruptcy will most likely allow you to keep your retirement savings and discharge your unsecured debt.

Bankruptcy may not seem like a pleasant option, but it may have benefits that could help you secure your finances through a difficult economic time. Consult an attorney and see if bankruptcy protections can help you.