Getting laid off is a fear many of us have, and a reality some of us must face. But, being prepared for a layoff - and knowing how to react when one comes your way - is the best bet at handing yourself during this stressful time. Take into consideration, the following:

Ask for Severance: Companies, by law, are not required to offer you a severance package when you are laid off. But, many - if not most - do. If your company is known to offer severance, negotiate a large package. Company loyalty, longevity, and a good reputation can all work in your favor. In addition to severance, make sure your company is paying you for any unused vacation days you might have accrued.

Stay Calm: If there is ever a time for panicking, losing your job seems to qualify. But, panic will get your nowhere. Instead, stay calm and stay rational: you don’t want to cash in your 401K or rack up your credit cards with debt. Instead, cut out expenses you don’t need (such as morning Lattes and cable TV), and tap into your emergency fund. That’s what it’s there for.

Remember it’s not the end of the world: Layoffs, though not enjoyable, are certainly not the end of the world: life will go on. It’s important to keep this in mind and remember that jobs come and go. Stay optimistic and dedicate yourself to finding something even better.

File For Unemployment: Even with severance, you are still allowed to file for unemployment. This should be done as soon as possible because it can take weeks for your first check to arrive. The amount of unemployment you receive is based on your previous salary as well as the state you live in.

Before filing for unemployment, keep in mind that it is only rewarded to people who have lost their jobs through no personal fault. If you’ve been fired or you quit, you aren’t eligible to receive benefits.

Look For Health Insurance: If you’ve just lost your job, you probably have just lost your health insurance as well. If you have a spouse, see if you can sign up on their company plan and, if not, consider using COBRA. Through COBRA, you keep the insurance you had through your employer, but you pay the premium. This is good for people with preexisting conditions who would be rejected from other insurance carriers. If you can get insurance elsewhere, however, do. COBRA is expensive. The quicker you find a lower premium, the better.

Begin the Hunt: As soon as you are laid off, it’s important to start job hunting. This means getting your resume “out there,” but it also means using employment agencies, career centers, and headhunters. The more sources you use, the more likely you will find what you’re looking for. It’s also important to get your contact info out there: if you’re used to communicating with people through work phones or work email, contact them and let them know your new contact information.

Keep a Schedule: When you’re unemployed, it’s easy to get off schedule: rather than getting up and getting dressed you may opt to sleep in, instead of writing your resume, you may watch the 90210 marathon on TV. While this might sound appealing, it will really get you nowhere. Keeping a schedule, getting up at a certain time and putting in a full day’s work towards getting a job will keep you sane and on track.

Don’t Rely on Credit Cards: You might not be able to stop yourself from turning towards credit cards when you find yourself unemployed. But, they are little more than a quick fix…and you’ll pay in the end. Instead of using credit cards, cut down on your expenses, track your spending, and make yourself a new budget, one that takes into the account the fact that you’re not bringing in the income you once were.

Prioritize What you Owe: After you’ve been laid off, it might be fairly easy to find your bills piling up. The best way to fix this is to pay what’s essential first. For instance, car loans, home loans, and utility bills should be paid before credit cards or cable bills. Contacting your creditors, and explaining the situation, is also a wise move. They might be more understanding than you think.

Get Help Reducing Debt: If you were already struggling with bills while you were employed, getting laid off will probably increase the strain on your finances. Think about getting professional debt help to reduce or even eliminate your debt. Professional debt negotiation and debt settlement companies can negotiate with your creditors to get you debt relief.

Getting laid off can be a difficult time in your life, but being prepared and knowing what to do will help you cope. The most important thing to be is positive: life goes on.