My mother-in-law has more than $67,000 in credit card and line-of-credit debt. She owns a vehicle, no house or other capital or liquid assets to speak of. She is late-50s, grosses less than $30,000 annually, and works for one of the banks to which she owes a sizeable portion of the above. Her health is not great. We are very concerned about her and will be counselling her to seek assistance immediately, now that we know the extent of the situation. When is bankruptcy the best option, and would it impact her employment (as a teller/receptionist) in the bank?
When is bankruptcy the best option?
Posted on Tuesday, August 28, 2007
posted by Questions @ 4:40 pm
1 Expert Comment:
At August 30, 2007 |
2:52 pm
, Barton Goth, GCO, Bankruptcy Trustees Said...
Typically speaking the option that is the best is the option that the individual can afford. I am of the school of thought that when you can avoid a bankruptcy it is best to do so, but sometimes due to cash-flow it is simply not possible.
As for affecting employment. Sometimes when you are seeking employment and a bank finds out about a bankruptcy or a proposal this can cause hiring difficulties. However, when you are already employed by the bank it is often a different story as the bank will rarely connect that the debts being written off are those of an employee.
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