For most people, losing a job suddenly can turn into a major financial disaster. How will the bills be paid, especially the rent or mortgage? How can one support his family without work? There are so many things to consider once you lose your job. Most employees can expect to see some temporary relief by way of unemployment compensation. Every state makes unemployment benefits available to employees who lose their employment status through no fault of their own. However, if you do decide to file for unemployment compensation, there are some eligibility requirements you have to meet, including proof that you are diligently searching for a new job while collecting unemployment benefits.

File As Soon as You Can

The best thing you can do for yourself once you've lost your job is to file a claim for unemployment compensation with the appropriate state agency as soon as you can. It can take several weeks to start receiving your payments, so the sooner you can file, the better off you will be.

An Overview on Unemployment Compensation

You m ay even wonder what unemployment compensation is and how it can help you. Unemployment compensation is an insurance program that is jointly funded by both state and federal governments. Its purpose is to temporarily provide compensation for those that are looking for a new job after becoming unemployed. People can become unemployed through no fault of their own for a number of different reasons, including downsizing, new management or facility closure.

While each state's unemployment compensation program has a similar structure, each state has its own rules regarding eligibility for filing a claim for benefits, how much the applicants will receive, and how long the benefits last. The federal government oversees the entire process and helps to pay each state their costs of running the unemployment compensation programs.

You are only eligible for unemployment benefits if you were considered an employee of your job. You cannot qualify for unemployment benefits if you were an independent contractor.

Unemployment Eligibility Requirements

To qualify for unemployment compensation, there are two basic requirements you must meet:

First, you must have worked for a certain amount of time and earned set a minimum amount of money before you lose your job. This is referred to as the base period, and it's a 12-month time frame that usually ends before you've lost your job.

The next requirement is based on the reasons why you became unemployed. You can only collect unemployment benefits if you became unemployed without fault. You are not eligible for unemployment if you've voluntarily quit your job, or if you were fired for some type of violation or misconduct.

Handling a Claim on Your Own

If you feel as though you meet the requirements for filing and receiving unemployment, you should be able to handle filing the claim on your own. It's a fairly simple form to fill out and the process is also straightforward. The forms do vary from state to state, but the basic information asked for is relatively the same, so you should have no issues. You'll generally be asked some basic information about yourself, your work history and a brief overview on the reasons you've become unemployed. Once you submit the form to your state agency, you may be called for an interview. The state agency will also reach out to your employer, either by mail, by phone, or both. If you meet the eligibility requirements, you'll be approved to receive compensation.

When You May Need to Retain an Attorney

You may want to retain an attorney if your claim is denied but you strongly feel that you do qualify for unemployment compensation. Generally, if you're denied compensation, you will have to file an appeal and work through the process. This is when it's a good idea for you to bring an attorney on board.

You also might want to retain an attorney if you have a legal claim pending against your employer and the compensation was denied because of that claim. Of course, all denials are appealable, but it's important you speak with a legal professional first.