Bankruptcy Tips and Advice For Bear Stearns Employees

The collapse of the Investment Banking Firm, Bear Stearns will cause massive lay-offs. How many is not yet known, but it could well be into the neighborhood of 12,000 or more, currently it appears they have somewhere just over 14,000 employees, but of course, they will no longer be needed, and looks as if their 401Ks may be completely depleted. Many of the Bear Stearns employees, will be laid off or terminated and that means a huge hit to the dismal job figures for the next quarter in the US economy, however the real pain will be to those employees who lose their jobs and will most likely be forced into foreclosure and bankruptcy.

What tips can we give those laid off Bear Stearns Employees who will be forced into bankruptcy? Well, first they need to get the proper paper work secured by a competent New York Attorney, and perhaps they can get a group discount as so many will be in the very same boat. Some of these employees will be left in a similar situation as those who were left in the wake Enron, as those at the top continued to water ski, while they treaded water. A New York style bankruptcy for a high-paid Bear Stearns employee could run as high as $8,000 to $30,000 and they will most likely need the best possible lawyer to help them through this troubling time.

Since, 30% of Bear Stearns stock is owned by its employees, and since that stock is now worthless, some of these employees are literally wiped out completely and will have no choice but personal bankruptcy. It is therefore important that they take immediate stock of all their personal assets, tax paper work, property assessments at the time of the collapse and what is left if anything of their 401K or stock portfolios. That is the advice that Wall Street Lawyers are giving today in the New York Times and that sounds about right to me.

Bankruptcy Tips – Work on Rebuilding Your Credit – Part 2

Fortunately nowadays filing for bankruptcy is no longer considered such a social or financial disgrace as it was ten or twenty years ago. You can take advantage of filing for bankruptcy to give yourself a way of escape, allowing you to start again on the right foot.

You will now be able to concentrate on restoring your credit and this is no easy chore. It is obvious to all, that if you did file for bankruptcy it was because you could not manage your credit in the first place. This will make finding another credit all the more difficult. This does not mean that you will never have a chance to; it just means that from now on your financial life habits will have to change.

How can you rebuild your financial status if you cannot get credit? This will depend principally on the type of bankruptcy you filed for. Bankruptcy filed under Chapter 13 will bind you for five to seven years, whereas filing under Chapter 7, means your bankruptcy history will stay on your credit report for about ten years. Nevertheless, during this time you will find it hard to get your financial status back, in addition to the fact that credit will be a near impossibility. This does not mean you cannot get the pieces back together again.

Depending on your income you will have to adapt to your new condition. If you still have a property and pay a loan to the bank, keeping on time with your mortgage payments will be an asset for any future credit request and will enhance your credit report, although not all properties report to credit bureaus.

Try taking on a new outlook and treasure your past experiences. Most bankruptcy attorneys and financial analysts suggest that the right attitude and perseverance will help a great deal after filing for Chapter 7 and 13. The sooner you get back in after bankruptcy the sooner you will recover from the aftermath of bankruptcy. If you keep a positive attitude, this will make a real difference.

Change your financial management strategy, keep your payments up-to-date and do not let them run late. With professional help from an attorney or law firm and again a financial analyst, you can plan a financial scheme and even obtain a new credit without having to pay exorbitant fees or interests due to your past mistakes. Seeking advice from a bankruptcy attorney can help you get into step once more.