Unemployment Reaches Three-Month Peak

More Information About Unemployment Claims & Debt Relief Through Bankruptcy In Arizona

For most American families, the last few years have been fairly bleak. COVID-19 wiped out not just jobs but some entire industries. This was immediately followed by dramatic inflation that doubled or even tripled the cost of some basic necessities. The United States just went through a shocking and history-making change of leadership, with Republican officials promising greater efficiency and a thriving economy. But politicians’ promises usually fall short, and this has been no exception. Approximately one month into Donald Trump’s second presidency, unemployment claims for the week ending February 22, 2025 reached a three-month high. Experts had predicted 220,000 unemployment claims for this week, but once all the data was in, there were actually 242,000 unemployment applications filed. Some of this was expected, as there were widespread layoffs of federal employees across a number of governmental departments. Additional agencies are expected to submit plans to reduce their workforces by March 13, 2025- which means that the unemployment rate may continue to climb. 

With the cost of living as high as it is, debt can accumulate quickly when someone loses their job. It can balloon with interest and late fees, and cause problems that won’t go away just from finding a new job. Thankfully, there are legally processes available to provide debt relief and protection from creditors. If you’re considering bankruptcy, or think it may be necessary at some point in the future, you can discuss your personal and unique situation with one of our dedicated professionals free of charge. At Chapter Bankruptcy Lawyers, our staff and attorneys are passionate about helping our clients improve their financial situations through bankruptcy. Schedule your free consultation with a member of our Arizona bankruptcy team today by calling 480-405-1010. 

Filing Your Arizona Unemployment Claim

With hundreds of thousands of new unemployment claims being filed each week, it can be useful to know how to file an unemployment claim in case it ever becomes relevant to your situation. An employee must have lost their job through no fault of their own to qualify for unemployment benefits in Arizona. So if a company is downsizing, or relocating to a state where a move isn’t possible for the employee, they could be eligible for unemployment benefits after losing their job. But an employee who was fired for being caught stealing, being rude to customers, being consistently late, etc., would not be eligible for unemployment benefits in Arizona. If the situation is unclear, a determination will be made by the Arizona Department of Economic Security. A worker must have paid unemployment tax and met certain income requirements to qualify- at least 390 times the minimum wage in one quarter and at least half that amount in the other three quarters, or at least $8,000 in wages in at least two quarters. The documents a worker should be prepared to provide for their unemployment benefits application include:

• Social Security number
• Mailing address and county of residence
• Driver’s license or state ID number
• Employment history: names, addresses, and phone numbers for employers from the last 18 months, last day worked, payment amount including severance and unused sick pay, name and local number of any applicable union hall, and start date and monthly amount of any pension benefits
• Immigration and military documentation in applicable situations

After gathering these documents and submitting the request for unemployment benefits, the applicant should receive a few documents in the mail. They should come within approximately one week of the application and include A Guide to Arizona UI Benefits in English or Spanish, a Wage Statement, and a Certificate of Understanding. The Certificate of Understanding must be signed by the applicant and returned to the DES. The applicant can request to receive their benefits through direct deposit to speed up the payment process. If you have recently lost your job, it’s important to keep in mind that unemployment benefits don’t continue forever, and only cover a small portion of what you earned at your job. If you are your family’s breadwinner, you should be looking for a new job as soon as possible rather than relying on UI benefits. 

How Job Loss & Unemployment Lead To Bankruptcy

Living paycheck-to-paycheck is a common occurrence in the United States- experts estimate that as many as 78% of American households have a budget that only covers their essentials. Additionally, about 28% of Americans don’t have $1,000 in savings in case of emergency. The number one reason these people stated for their lack of savings was the cost of living, followed by debt repayment. So if someone loses their job and doesn’t have much in savings, they will likely begin amassing debt just to get by while looking for new work. This is the perfect example of when someone might work up a significant credit card balance. And once a credit card is maxed out, it will keep accruing interest at an astronomical rate. Unless that person finds a new job that pays significantly more than the one they lost, it will take a while after getting a new job before the debt can be repaid, if it is even possible. 

Job loss is one of the top causes of bankruptcy in Arizona and the country as a whole. But it comes behind several other factors like divorce, natural disasters, living beyond one’s means, and financially supporting family members. The leading cause of bankruptcy is medical debt. If you have been affected by any of these factors and are wondering if bankruptcy is right for you, our firm offers free consultations by phone. Get started today- and see if you qualify for our Zero Down payment option- by calling 480-405-1010. 

Plan A Job Loss-Related Bankruptcy With Our Arizona Bankruptcy Team

Unless your creditors were already breathing down your neck, immediately after a job loss probably isn’t the best time to file your bankruptcy petition. Here, one of your most valuable resources is the time to thoroughly prepare for your filing and plan to file it at the most strategic moment. For example, your income may have been too high to qualify for chapter 7 bankruptcy while you were employed, but a few months of unemployment could bring your average monthly income to a level that makes you eligible to clear your debts with chapter 7. Or you may be using unsecured lines of credit, like credit cards, to pay your expenses while you look for a job, so waiting until you have found new employment will maximize how much debt is cleared with your filing. But pressures from creditors and your own financial goals could make it more opportune to file sooner. This is a difficult decision to make on your own, especially if you don’t have a legal background and specific bankruptcy experience. You may feel more secure in your bankruptcy decision-making process if you discuss your situation in greater detail with an experienced Chapter bankruptcy lawyer. Our firm offers free consultations by phone, and if you qualify, affordable post-filing payment plan options starting at Zero Dollars Down. Schedule your free consultation today by calling 480-405-1010.