500 Jobs Cut: May Need Career Retraining After Job Cuts and Bankruptcy May Be a Great Option
News reports say nearly 500 employees in the Chicago-area working for MB Financial Bank will be out of a job soon. The MB Financial job cuts are happening because Fifth Third Bank recently acquired MB Financial Bank in a $4.7 billion merger. 493 layoffs are expected in May, most of the job cuts taking place at the MB Financial location in Rosemont, and about a dozen in the downtown Chicago MB corporate headquarters. For many reasons some of the people who lose their jobs with MB Financial will need career retraining after job cuts.
A bank spokesman reported that most of the layoffs are coming in the next four months and others will occur over time through the rest of 2019 and 2020. The reason for the job cuts is a cost savings of $255 million, in part from closing one in five bank branch locations.
Chicago Bankruptcy Lawyer Joseph Wrobel Can Help You Today at (312) 781-0996
Trends we can follow after job cuts are announced indicate that more customer service jobs are going away because of the Internet and automation technology. If automated telephone answering software can understand you and help with basic account information and customer service, there is less need for a customer service representative. Likewise, if more people can get their banking information and handle basic transactions on their computers, handheld devices, and ATMs, the need for human customer service professionals decreases.
Could You Pay the Bills While Looking for a New Job?
The recent US Government Shutdowns were shocking to many people because they were unable to pay their rent, mortgages, credit cards, and utilities. Even though the federal employees temporarily laid off from their non-essential government positions were going to receive back pay, their cash flow was interrupted.
Could you pay the bills if you suddenly had to live without getting a paycheck on time? You may be able to get away with only paying the minimum due amounts on credit cards, and getting a month behind on utilities, but most likely you cannot get along too long without substantial savings.
Many of the workers affected by shutdowns waited for the government to reopen, and others immediately started looking for a new job. If you cannot pay the bills after a job cut you might be facing evictions, foreclosures, credit account default, and the shutoff of utilities.
Read our article about this problem: Bankruptcy for Unpaid Workers
Bankruptcy Protection: Chapter 13 Reorganization
There are two types of bankruptcy protection available to consumers with debts they cannot pay. First, Chapter 7 Bankruptcy helps to wipe out and discharge the responsibility to pay dischargeable debts. Note that not all debts are dischargeable. For example, child support is not a debt you can discharge in a bankruptcy case.
Second, a Chapter 13 Bankruptcy is referred to as a wage earner’s plan. People with regular income can use Chapter 13 to develop a plan to repay a portion of their debts over a three to five year period. The problem workers facing job cuts may face is not having the regular income to qualify for a Chapter 13 Bankruptcy, also referred to as a “reorganization” bankruptcy. It is important to talk to an experienced bankruptcy attorney to learn how you can qualify for either Chapter 7 or Chapter 13.
When you contact Joseph Wrobel, Limited at (312) 781-0996 you can share more information about your financial circumstances and get a better idea which bankruptcy laws you can take advantage of to help get you out of debt.
Stop the Bill Collectors with the Automatic Stay
One of the most exciting advantages of a bankruptcy filing is the Automatic Stay provision that stops collectors in their tracks. Simply put, when someone files for bankruptcy, creditors may no longer pursue any collection activity. Therefore, during the bankruptcy case, whether you have a Chapter 7 or a Chapter 13, the bill collectors cannot communicate with you at all. No more phone calls, no more threatening letters.
The immediate ceasing of collection activity is just the first benefit of bankruptcy that many people can enjoy. Too often when people think about bankruptcy, they imagine companies going out of business and empty buildings. For consumers, bankruptcy is a right and a law designed to give people a fresh start, a chance to get back in control of money and finances.
Most people who file for bankruptcy will tell you that the anticipation of filing for bankruptcy was more stressful than actually moving forward and filing for Chapter 7 or 13. You may have a variety of questions about job cuts and bankruptcy.
Job Retraining Programs, Online, and Trade School Options
The chances are that some of the MB Financial employees losing their jobs are going to need career retraining after job cuts so they can get a new position, in a new career track. Workers in positions being reduced or replaced by technology and automation can change directions and pursue retraining for new positions that will be in demand and not in immediate danger of being cut.
When looking into career retraining options, consider some of the following steps you can take to make more money and increase job security:
- Take a class to explore a new career field, to update a specific job skill or learn a new skill to make you more appealing to employers. By taking a class after being out of school for years, you show employers that you are flexible and interested in learning new skills.
- Short-term training for new jobs is something you can pursue through certification programs, and certificate programs at local schools.
- Begin a degree program and switch careers. You can plan your education and enroll in a degree program using financial aid tools which can also help pay for living expenses while pursuing higher education. Job cuts can be a disguised blessing.
Getting Financially Fit with Joseph Wrobel, Limited, the Chicago Bankruptcy Law Firm (312) 781-0996.
Even with bad news of job cuts, there are good opportunities behind the scenes. Some who wish for a higher paying job or career with more opportunities may get their wish in a job cut situation. The nearly 500 employees at MB Financial Bank can take advantage of one of their bankruptcy options while also pursuing retraining opportunities. To learn about bankruptcy or get some tips and leads on career retraining after job cuts, call Joseph Wrobel, Limited in Chicago at (312) 871-0996.