Some interesting news came out today. Unemployment claims fell to the lowest levels since April. This is the lowest level for first time claims filed since the week of April 2, which had 385,000 initial claims. That said, new claims have regularly remained above 400,000 a week for the last six months. Below are some highlights from the data released today:
- 391,000 Initial Unemployment Claims Filed in the Week that Ended 9/24/11
- 428,000 Revised Claims Filed in the Week that Ended 9/17/11
- 37,000 Less Initial Unemployment Claims 9/24/11 versus 9/17/11
- Economist Forecasted 419,000 Initial Unemployment Claims for 9/24/11
Other updated stats include continuing claims such as people that are filing for the second week and up until the time that benefits currently run out, which is 99 weeks. Continuing claims decreased by 20,000 to 3,729,000 for the week the ended on 9/17/11, which is the most recent available data. Among those not currently receiving unemployment benefits are about 14 million people in the U.S.
How does Unemployment Affect Bankruptcy Claims?
You would think that as unemployment went up, claims for Chapter 7 bankruptcy and Chapter 13 bankruptcy would increase too. Not always. In fact, many creditors are putting less pressure on consumers, which is slowing the expected bankruptcy rate. For example, home foreclosures have been slowed. Also, for those that have limited financial resources, the ability to pay to file for bankruptcy is lower.
As the economy turns around and consumers have more assets to lose. For example home prices have been rising now for four months straight. It is the increased risk of losing assets such as a home that has many Georgia bankruptcy lawyers expecting that bankruptcy claims, such as Chapter 13 will increase in the near future.
3 Million Unfilled Jobs, 14 Million Unemployed
Current data shows that there are 3 million jobs in the U.S. that are unfilled. Many employers are reporting that they cannot find workers with the proper skills for these jobs. With about 14 million people unemployed in the U.S., it is going to take alot of jobs to turn around the unemployment rate. Until then, millions of Americans are going to continue struggling financial. Many of them will consider either a straight bankruptcy (Chapter 7) or a Repayment Plan (Chapter 13) as an option.
Unemployment is one of the top reasons people seek information about bankruptcy. If you have questions about bankruptcy, contact Berry & Associates. We have 10 offices located throughout the Atlanta area. Call 404-235-3328 or 1-800-414-3328 to discuss getting a free consultation.
