Imagine this: one morning you go into work and your boss tells you that you no longer have a job. Moreover, your place of employment no longer exists, and it’s doubtful that you will receive those final paychecks.

BUTLER & HOSCH COLLAPSE

For so many who live so close to the edge, missing that paycheck can mean missing mortgage, car, student loan and credit card payments or deciding between buying food and paying the electric bill. This scenario is now a reality for hundreds of employees of Butler & Hosch, one of the largest foreclosure law firms in the country with offices in Miami, Orlando, and Tampa. They closed shop earlier this month without warning and also without enough cash to make payroll.

In a memo to his former employees, founder Bob Hosch said in an email dated May 14 that overly aggressive expansion in purchasing default assets was to blame. But even as the firm has filed an Assignment for the Benefit of Creditors while holding out hope that lenders and other partners would provide an infusion of cash, there is no sign that has happened – or will happen at all – as of writing this. That’s bad news for the hundreds of former attorneys and staff, which are now without a job.

Take a Deep Breath

Losing a job is a traumatic event, especially when it is sudden and unexpected, but there are some things that you can do to get a handle on your financial situation while you look for new position.

1. Use your employer provided health care while you still have it. Get all your wellness exams, go to the dentist and have whatever you need done. Then start looking for a new health plan that will carry you through until you land your new job. Losing employment-based health coverage may entitle you for a special enrollment period at healthcare.gov.
2. Don’t duck your creditors, instead find out if you can make reduced payments, get a better interest rate, or if you’re insured, to even miss a couple of payments. Some credit cards and loans will allow you to miss up to two payments a year – with warning – to help you stay on your feet. Also student loan debt should be one of the first things to take care of when you lose your job. You may be able to put your student loan payments in forbearance or qualify for a $0 per month payment under an Income Driven Repayment Plan until you find employment again.
3. Cut out the unnecessary spending and rework your budget to make the most of your savings.
4. Finally, do not drain your retirement accounts for operating cash unless it is urgently necessary that you do so.

Free Help is Available!

Many industries “take care of their own” and give “in the biz” discounts, but not the legal profession… until now. Van Horn Law Group is offering to former employees of Butler & Hosch free student loan or debt help during this challenging time. We understand your difficulties and stress, and we can help. Call us today and we’ll get you back on the right path.

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