Bankruptcy problems are exploding throughout northeastern Utah, despite a recent Gallup poll indicating that Utah residents have greater confidence in their state economy than people in any other state.
Perhaps the residents of Vernal and the Uintah Basin were not included in the poll.
These areas have been hit particularly hard with a rash of economic issues. Consequently, many families from these Utah communities are facing bankruptcy problems.
Boom and Bust Economy of Vernal, Utah, and the Uintah Basin
Northeastern Utah has a history of being a boom-and-bust economy, with repeated cycles of growth and expansion followed by downturns. This has occurred primarily because the Uintah County economy relies on oil and gas extraction, rather than the less cyclical ranching and farming industries.
Companies come into the area to drill, creating job openings that are, at first, a struggle to fill. Soon, however, word spreads and more new residents move to the community, filling those jobs and developing new local businesses to serve area growth.
Today, with worldwide oil market prices dropping drastically, the demand for oil and gas has diminished.
This has resulted in many local residents in the industry losing their jobs. Skilled workers are leaving Utah for jobs elsewhere, causing the local economy to collapse, forcing businesses like restaurants, motels and gas stations to close.
Many workers previously employed in the oil and gas industry or in local service businesses now face bankruptcy problems.
Unemployment Rates and Uintah Basin Area Bankruptcy Problems
According to the Utah Department of Workforce Services (DWS), the statewide unemployment rate was just 3.7 percent as of April 2016. Compare that to the national average of 5.0 percent for the same month, and it looks impressive. But how does the Uintah Basin area measure up?
In Uintah County, the unemployment rate was at 11.5 percent in April 2016.
That’s more than double the national average. And the jobless rate in this area is increasing. Only a year ago, it was at 6.1 percent. As unemployment continues to rise, more and more area residents will need help for bankruptcy problems.
Finding Help for Utah Bankruptcy Problems
Countless people in Vernal and throughout the Uintah Basin area are suffering through serious financial issues due to the area’s economy. Many of these residents need a fresh start, and filing for bankruptcy can provide them with that opportunity.
Lots of people have lost their jobs and are feeling hopeless, but filing for bankruptcy can be like the light at the end of the tunnel, providing debt relief and peace from creditors.
There’s no shame in bankruptcy — people from all walks of life file every day.
If you are having financial problems and feel like you have nowhere to turn, the experienced attorneys at Lewis Adams & Associates can help. Contact our office today to schedule a free consultation. We will help you make a new start in life, and put all your bankruptcy problems behind you. There is life after bankruptcy.