Published by Mark

Indiana Employment And Unemployment Impacts Bankruptcies

February 25, 2009 at 9:24 am

No question about it – job loss is one of the main causes of bankruptcy. Indiana has had more than its share of employment upheavals, and that’s the reason I find it important, as a bankruptcy attorney in Indiana, to keep my blog readers and bankruptcy clients informed about hirings and firings around our state.

While job loss may make bankruptcy the only way to halt oppressive collection efforts by creditors, successful emergence from bankruptcy almost always means finding or keeping income-generating work. When individuals emerge from a Chapter 7 bankruptcy even though many of their debts may have been discharged by the court, they still need to keep their bills paid and regain their financial footing. Those who had income and therefore qualified to file Chapter 13 bankruptcy, need to maintain employment in order to keep up with their three to five year debt repayment plans under the supervision of the bankruptcy court.

As has been true in all my recent employment updates (see “Uncle Sam And The State Join Indiana Bankruptcy Attorney In Tracking Job Stats”), there’s a mix of good and bad job news in our state. First, positive news comes from a Greenwood, Indiana appraisal company called StreetLinks National Appraisal Services. StreetLinks plans to hire 600 new employees over the next three to four years.

Further south in Evansville, Mead Johnson Nutrition (a spin-off from Bristol-Meyers-Squibb and the world’s largest maker of baby formula) just raised $720 million in Wall Street’s first initial public stock offering of the year. The company is constructing a new research center, a move that will, over the next few years, add a significant number of new jobs.

Last week, RecruitMilitary put on a job fair at the Indianapolis Museum of Art, designed to place veterans in civilian jobs. Some high-power corporations were there interviewing, including Cook Medical, Snap-on tools, WellPoint, and Mike’s Express Car Wash. At a second Indianapolis museum, the news was less rosy. The Eiteljorg Museum cut six staff positions and froze salaries for the remainder of this year.

Meanwhile, FedEx Corp. announced cut. It’s not yet known how many of the 500 Indianapolis positions might be affected. Sprint Nextel in Fishers announced it’s cutting 400 call center jobs by next month.

Near Muncie (where one of my four bankruptcy law offices is located), International Paper announced the closing of its industrial packaging plant, laying off 99 workers, while in southern Indiana, OFS Brands furniture maker is closing a 68-employee plant.

Better news came from southwestern Indiana, as defense contractor ITT announced plans to locate an avionics repair and testing facility at Crane Naval Surface Warfare Center (this is near Bloomington, Indiana, where another of my bankruptcy offices is located). The great news here is that hiring is expected to begin in just a few weeks.

In coming bankruptcy blogs, I’ll be talking in greater detail about the new stimulus plan. As Indiana begins work on bridge and road projects (long in the planning), that should bring positive news to the employment markets, according to Associated Press economic writer Jeannine Averson.

While we wait and hope, I’ll be here blogging about how Indiana employment and unemployment impact bankruptcy, and doing my level best to offer my readers and bankruptcy clients the help, information, and advice they need.

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