Help in Hard Times

Ray Pikna has over 25 years of legal experience helping people and businesses with financial problems.  He has argued in the United States Supreme Court, represented the FDIC, FSLIC, and Resolution Trust Corporation during the savings and loan crisis in the late 1980's, authored numerous articles, and is a frequent speaker on bankruptcy topics at continuing legal education programs throughout Ohio. Ray now practices with the law firm of Wood & Lamping LLP in Cincinnati, Ohio. He suggests the following rules to live by ...

When confronted with financial problems or job loss, there are no easy answers, and I don't want to give anything that might be construed as legal advice to non-clients, but there are a number of things to keep in mind:
 
1.    Recognize that these problems will affect you emotionally.  Although it may seem that you are alone, you are not.  Financial problems and job losses place tremendous strains on even the strongest of family relationships.  Please keep that in mind when speaking with loved ones or friends.  They're on your side.  If you're under stress or risk losing your job, don't compound the problem by alienating or losing family and friends when you need them the most.  If you get depressed, seek professional help.
 
2.    Plan ahead.  Can you get by on one income or a reduced income?  Most people wait too long and do not take the steps necessary to prepare to stay afloat if something bad happens. 
 
3.    Don't believe every rumor, but don't bury your head in the sand and ignore warning signs that your employer is in trouble or that your job may be at risk. 
 
4.    Prepare an updated resume or CV.
 
5.    Continue learning new skills so that you will have more employment options.
 
6.    Be careful if changing jobs; is the new situation sure to be better than the one you're leaving?
 
7.    Eliminate unnecessary expenses, and conserve as much as possible when buying essentials. 
 
8.    Consider cutting up your charge cards.  It's harder to part with cash than it is to use charge cards.
 
9.    If you lose your job, don't be too proud to let people know you're looking for a new opportunity.  You are more likely to find another position through someone you already know than from answering the want ads.

10.    Consult with a professional (such as a bankruptcy attorney) if you are at risk of losing your home, etc.  He or she may recommend contacting the lender to negotiate a forbearance agreement deferring or reducing payments until your financial circumstances improve, or assist you in planning your exemptions in order to get the maximum benefit from your "fresh start" if a bankruptcy filing is required.  For example, certain tax-qualified retirement accounts are generally exempt in bankruptcy and can be sheltered from the reach of creditors, and the attorney may suggest that you not borrow or withdraw funds from those accounts to pay bills.
 
11.    Consult with an attorney or accountant before withdrawing money from retirement accounts to pay bills.  Early withdrawals may be subject to taxes and penalties, which will reduce the amount of money you will have available for retirement.
 
12.    Consider volunteering; it will allow you to help others in their time of need, and may result in some leads.
 
13.    Exercise.  The endorphins that are released will help you feel better.
 
14.    Try to maintain as much normalcy as possible under the circumstances. 
 
15.    Consider how to explain to children that there will be some changes for a while that may limit some of the activities that they can do.  On the flip side, you may have an opportunity to watch their sporting event or to spend more time with them than before, so take advantage of that time together.
 
16.    Keep things in perspective.  It seems trite to say, but as bad as losing a job may be, it is not a death sentence.  Also, no matter how bad things may seem, there are others in the world who have it worse.
 
17.    If you lose your job, make sure you know the deadlines for retaining various benefits, such as maintaining health insurance coverage (COBRA).  Apply for unemployment compensation, and check with your church and social relief agencies to determine what resources may be available should you need them.
 
18.    Pray.  God helped Job through his trials and He will help us through ours.

19.    Some times bad things happen to good people.  Just because your employer failed does not mean you are a failure.

20.    Add value to your organization, and let your supervisor know.  Work hard and be visible.  It may mean the difference between retaining your job or losing it if your employer downsizes.