I recommend this recent article in the New York Time about overcoming frustration in trying to get back in the job market. It is well written and right on point. http://www.nytimes.com/2013/09/01/jobs/conquering-frustration-on-the-road-back-to-work.html?_r=0. So very often, the people I see have had the financial legs cut out from under them, and I give some of the same advice: accept the realities of where you are and work from there back to a place of personal and financial stability. Saying it, I know, does not make doing it any easier to do.
The good news, from my experience, is that most people can and will get back on their feet and eventually get back to financial stability. There are, however, some tough choices to make along the way. But time and again, I have seen people who make it.
The bad news is that the financial damage from a period of unemployment has to be dealt with or it can scuttle the entire effort as debt collectors take away needed income or property. Very often, a bankruptcy is the best way to do that. This is what the bankruptcy system is for: to give people who need it a fresh start so they can get back to being productive and self supporting. Otherwise, people saddled with too much debt and forced to downsize due to reduced income are threatened with debt collectors who can stymie their efforts to get back on their feet.
Not every bankruptcy needs to result in creditors not getting paid. If an individual has the disposable income, a Chapter 13 bankruptcy provides a controlled and controllable path to debt settlement by repaying what can be repaid (usually without interest) over 3 to 5 years. Others cannot even do that and need Chapter 7.
But confronting the situation and carefully considering all the options is the best thing those who have been out of work can do. Qualified attorneys who take the time to make sure the job is done right are just what is needed.
If you are facing, or even ending, a period of unemployment, we can help you look at all the options. Bankruptcy may not be right for you, but it is worth looking at, along with the other options.