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Los Angeles Bankruptcy Still Help, Despite Decreased Jobless Numbers

By Encino Bankruptcy Attorney on February 26, 2012

A recent report showed that the number of first-time applicants for jobless claims fell to its lowest level in about four years‚ signaling an improvement in the economy. That’s the latest report from The Hill.

Other recent reports have also shown that unemployment numbers continue to drop as a boost in the number of hires toward the end of 2011 has helped stabilize the economy. The Inland Valley Daily Bulletin reports that unemployment in Los Angeles County for January dropped to 11.5 percent from 12.2 percent last January.

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Los Angeles bankruptcy attorneys believe these are all positive signs that point to economic recovery. But California’s unemployment still stands about 3 percent higher than the national unemployment rate. This shows that the West Coast is still mired in a slump.

It’s possible that Los Angeles bankruptcy could be a viable option for consumers who just can’t seem to make financial progress. If they have lost a job in the past or are currently unemployed‚ they may be wondering how they can get out of the debt that they continue to rack up.

Unemployment can severely drain a family’s savings account and typically they use credit cards and unemployment checks to maintain their expenses in the meantime. But the current economy‚ especially in Southern California‚ has been brutal to the point that people have spent months and years looking for work.

According to the news article‚ people seeking unemployment benefits stayed at 351‚000‚ while a four-week average fell to 359‚000‚ which was down about 7‚000 from 366‚000‚ the Labor Department recently announced. This was the lowest level since March 2008‚ shortly after the recession started.

Economists believe that the numbers show that the job market is improving and that companies are beginning to hire. Statistics show that the job market has steadily improved since summer‚ as weekly applications for benefits has been below 400‚000 since the fall. Analysts believe that if companies continue hiring about 200‚000 people per month‚ the economy will continue to steadily improve.

These are all good signs and everyone certainly hopes that the economy continues to make these positive strides. Bankruptcy can play a role in the recover for consumers and it’s a tool that millions of people have used to their advantage.

When a consumer who is struggling with debt files for bankruptcy‚ they are awarded an automatic stay. This means they are shielded automatically from debt collectors and lenders who are attempting to garnish wages‚ send threatening letters and call a dozen times a day.

This provides immediate relief and can help the consumer get a quick start on their road to recovery. As the bankruptcy process continues‚ the consumer is able to have years of built-up debt removed.

Using plastic to get by on a month-to-month basis and making minimum payments or missing payments altogether is a quick way to kill credit scores. Yet for many people who have been unemployed‚ it is necessary. Getting a paying job is a step toward recovery‚ but bankruptcy in Los Angeles may be able to help you even further along.

Nader‚ Naraghi & Woodcock‚ APLC will provide a free consultation to help guide you in making a decision that works for you. In Encino‚ Glendale‚ and San Fernando Valley‚ just call (800) 568-0707.

Additional Resources:

Jobless claims remain at four-year low‚ signal improvement‚ by Vicki Needham‚ The Hill


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