Contact Us Today for Your Free Consultation!
 In Bankruptcy, Bankruptcy and Life, Blog, Fighting Foreclosure

Jobs are essential to meeting the costs of living. Without a job, men and women cannot afford the expenses of an apartment or home, food, clothing, and transportation, which may send that family into bankruptcy. Currently, 91,000 jobs in Texas may be at risk due the automatic spending cuts that might hit the Pentagon. If Congress fails to act on budget deals and to stall some across-the-board cuts then about 1 million defense-related jobs around the country may be lost. The Obama Administration has warned states of this possibility so that men and women who have careers in the defense profession can prepare for the worst.

The Defense Secretary Leon Panetta told lawmakers that the national security would be threatened because of the job cuts, a serious toll because they did not reach an agreement on what to cut. Politicians hope that any painful spending cuts will not be enacted until after the November 2012 election. One Senator expressed that the current economic situation is slightly like watching a train wreck. Last year Congress agreed to a deficit-reduction that cut $492 billion in the Pentagon over 10 years. However, additional savings need to be determined, and sequestration would reduce an additional $500 billion from the spending habits.

The automatic cuts may mean a better budget for the Pentagon, but it will devastate the budgets of millions of Americans throughout the states. A study on the actions researched that 10 states would account for 58.5 percent of the job and income losses, and one of the states in that top 10 is Texas. It is the third state listed for potential job losses and could end up with $5.4 billion in lost income in total. This job loss could come swifter than one would expect. The employers have the right to start notifying Texans of their potential job dissolution in August, and then let them go in January. If you are in this situation, you will want to carefully organize your finances. If you end up with debt, then consider a fresh start with a bankruptcy.