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How To Get Jobs Back in Arizona, and Will New Jobs Reduces Bankruptcy Cases in Arizona?

By Joseph McDaniel, Esq.

Okay, there's been a discussion of the reasons that businesses aren't hiring in Arizona on KTAR. And uncertainty caused by government regulation is high on that list, which doesn't surprise me much.

What may surprise you is that when a Tsunami of new jobs hits Arizona, which will happen in two to six years, there will be a corresponding increase in the number of consumer bankruptcy filings.

Why, you ask?

And I admit that it's counter-intuitive if you aren't an experienced bankruptcy lawyer in Arizona.

But here's the skivvy: people do not, as a general rule, file a bankruptcy when they lose a job. They file when they find a job.

This was true before the BARF Act, and I learned it from Chief Judge Caldwell when we were discussing the copper towns that had just shut down; I said we'd have a lot of bankruptcy from those. He said that we'd have a lot of bankruptcy cases, but not until the copper mines opened up again.

Because then they had something to lose.

And besides, when somebody loses a great job, it will probably be a few months before they pass the Means Test!

Full post as published by Arizona Bankruptcy Attorney Blog on March 28, 2011 (boomark / email).