What to Do About Unresolved Issues Concerning Unemployment

Unemployment insurance benefits are paid out to workers who lose their jobs and are unable to work. These benefits are reduced or discontinued altogether when a worker resumes work. If you have to file for unemployment, you may experience some issues when filing. Issues concerning disputes between you and your former employer regarding how you left your job may delay your unemployment benefits, so you should handle them as soon as possible.

Unemployment benefits are normally paid out to you when you have lost your job through no fault of your own. However, many states allow you to collect benefits when you leave your job voluntarily for good cause. You may not have been paid for your work, for example. If there is a dispute between you and your employer over the nature of how you left your job, your unemployment benefits are at risk.

You won't receive benefits payments until the issue is resolved. You'll lose money and may find it difficult to pay your regular bills and expenses. If you have any loans or credit cards that you must pay, you may end up missing payments and possibly defaulting on a loan if the payment becomes several months overdue.

You should contact your state's unemployment office as soon as possible. File an appeal to try to reverse the denial of your unemployment benefits. You'll have to explain the situation you are in and the conditions under which you left your job. If you win your appeal, you may be awarded unemployment benefits retroactive to when you first filed.

You may need money to tide you over until you receive your benefit payments. Consider drawing money from a retirement account such as a Roth IRA. You can withdraw from a Roth IRA at any time without paying a penalty and without paying income tax on the amount withdrawn. You may also withdraw money from a cash-value life insurance policy or sell unwanted or unneeded assets to supply you with income without affecting your unemployment benefits.