Losing a job is never a good feeling, whether or not you saw it coming ahead of time. However, regardless of why you are no longer employed, it is important that you take action to protect yourself and your family until you find work again. Depending on your age, a job loss may be the perfect time to start thinking about retiring, and collecting Social Security or looking for part-time work. No matter what direction you choose after losing your job, here are some important things you need to do.
File for Unemployment
As we said in Stretch Your Dollars While Between Jobs filing for unemployment should be the first thing you do if you become unemployed through no fault of your own even if you think your unemployment will be short-lived. After all, any extra money you can pick up will be useful while you are unemployed. If you are eligible for Social Security you may want to sign up for that instead. Legal professionals may be able to help with your case. This video explains some factors in choosing when to file for Social Security. It says that if you have the option of filing for Social Security Disability or Social Security retirement benefits you are much better off filing for the disability benefit. This is because disability will be 100% of your benefit while if you are filing early for Social Security your benefit will be reduced.
Alert Your Creditors
If you think there is any possibility that you won’t be able to make the payments on your debts it is important that your creditors know that before you fail to make credit card, car, or other payments. It may be possible to make alternate arrangements to stay current on your debt balances.
Ask for Spousal or Child Support Modifications
Typically, spousal and child support payments are based on your income. If you lose your job, there is a good chance that your income is going to be lower than it was when a support order was created. By alerting the court as soon as you experience financial hardship, it may be easier to avoid penalties for not making future support payments.
While an order cannot be changed retroactively, any amounts in arrears may be rolled into future payments to ensure that you don’t go to jail or face any other penalties.
Look Into Health Insurance Options
Assuming that you have no other sources of income, it may be possible to qualify for Obamacare or Medicare. If you were covered by an employer medical plan, you may be eligible to receive COBRA for up to 36 months after being let go. Although typically you are only eligible to sign up for Obamacare during “open enrollment” (typically around October/November) if you lose your job that is a “life-changing event” and automatically makes you eligible for enrollment if you qualify based on income. But you need to sign up immediately after you lose your job.
Start Plotting Your Next Career Move
If you want to keep working, your next step after losing a job is to update your resume and send it to potential employers. You may also want to create a social media or general web presence to make it easier to network with others in your field.
Not having a job can be a source of both personal and financial stress. While you don’t control what your employer does, it is possible to control how you react to being let go by a company. By taking quick and decisive action, it may be possible to find work quickly or better weather any financial crisis caused by long-term unemployment.
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