Dealing with the Financial Impact of Layoffs and AI
In today’s rapidly changing world, new technologies like artificial intelligence (AI) are reshaping industries and jobs faster than ever before. And for many people who’ve been laid off or replaced by tech, bankruptcy and job loss unfortunately go hand-in-hand.
If you’ve lost your job due to AI, automated systems, or other forms of new tech, you might be feeling uncertain and worried about your financial future. You might also be struggling with anger and feelings of betrayal, which are completely natural.
As a bankruptcy lawyer, I understand how tough this situation can be. Here are some things to keep in mind, along with options for you moving forward.
Understanding the Impact of Tech on Jobs
Technology, especially AI, is great for making many tasks easier and faster. However, it also has the power to replace some jobs with machines or software.
This can lead to a few problems:
- a loss of human connection for workers and customers
- frustration, anxiety, and depression for people who see their livelihoods at risk
- eventual layoffs in sectors like manufacturing, customer service, and even some professional services.
If you find yourself out of work because of these changes, you might struggle to pay bills and meet other financial obligations. In our hometown of Memphis, we’ve seen a lot of job losses as retail and restaurants close across town. These changes have long-term effects on the whole community, as job loss can depress the larger economy.
Evaluating Your Financial Situation
The first step in dealing with job loss and potential bankruptcy is to take a thorough look at your financial situation. Ask yourself some big questions, knowing there are no wrong answers. All that matters is you’re honest with yourself, so you can make a plan.
- How much do you have in savings?
- What are your monthly expenses?
- In what ways could you cut back or change your spending/saving habits?
- Are there any immediate job prospects in your field?
- Would it be wise to retrain for a different career?
Understanding where you stand financially can help determine the best path forward.
Coping Strategies and Support
If you worry tech advancements might significantly impact your industry, there are a few things you can do to weather the storm.
First, keep up with new developments. As you see big changes coming, consider retraining into new positions or getting additional training in your field. Look into training programs for similar work less likely to be affected by automation. This could be a new beginning, leading to a more secure job path.
In addition, connect with others in your industry or the field you wish to enter. Networking can open up new job opportunities that you might not find through traditional job searches.
Lastly, don’t be afraid to seek financial help when you need it. Talk with a credit counselor or non-profit debt management service.
You can also discuss your situation with a bankruptcy lawyer. Even if you don’t know what you need just yet, we can help you understand your legal options, protect your rights, and potentially ease your financial burden.
When to Consider Bankruptcy
If your financial situation seems overwhelming — say, you’re facing mounting debts like credit card bills, medical expenses, or mortgage payments, and your income isn’t enough — bankruptcy might be a viable option.
Chapter 7 bankruptcy can eliminate many types of debt entirely. It’s often a good choice if you have a lot of unsecured debt (like credit card bills) and not enough income to pay them off.
If you have a regular income, Chapter 13 bankruptcy lets you reorganize your debts and pay them in a more manageable way over a set period of time.
Both options can provide relief, but which one you need (if any) depends on your individual situation.
You’re Not Alone
Bankruptcy and job loss because of tech may seem like a scary situation, but you don’t have to face it alone.
Whether it’s understanding your rights, managing your finances, or getting out of debt completely, professional help can make a big difference.
Our award-winning team offers a free consultation, no strings attached. We’ll sit down with you and discuss all your options and whether bankruptcy might fit your situation and goals.
Sometimes a fresh start is just what you need to get back on your feet. Reach out to me, and let’s discuss how we can address your financial concerns and help you move forward with confidence.
Contact me today at 901-327-2100 or reach out to us online 24/7.