A Banker's Bankruptcy

A reader writes:

I have a similar question as the young lady from 2/1/08, but mine has more twists. I too am considering filing for bankruptcy. I'm considering filing because I have accumulated about 30k in credit card debt due to job loss and due to a 50% decrease in pay. I have now obtained employment, however I am still earning considerably less than I have in the past. I've scaled back in all aspects of my life, but I still think this is going to be the best option for me. I should also let it be known that I am NOT late on anything. In fact I have a 700 credit score!

Now for the question: I work for a bank as a Banker. I'm considering filing bankruptcy on the credit card that I have with my employer. I need to know if I should speak to someone in HR or the credit card department about this. I had this account long before I started working for the company, however the payments are out of control. Additionally, could my employment be affected as well? I don't directly deal with money, however I do work in a banking branch.

I know this is a rather complex one situation, so I appreciate your assistance. Thanks!

Disclaimer: I am not very familiar with bankruptcy laws or rights.

Your rights as a consumer and your responsibilities as an employee are separate and distinct but in your situation, could both come back to you in your workplace. Because bankruptcy laws can be confusing, I recommend you speak with the credit card department. Because you are not handling money, I would not expect a bankruptcy to impact your employment. Because employment guidelines vary from company to company, I encourage you to talk with your HR representative.

Having said that, I see someone who has faced a number of unfortunate circumstances; finds herself in a tough financial situation; and is taking positive, responsible steps to get it all under control. I am afraid I don't have too much else to offer. Readers, anything to fill in the blanks?

Best of luck to you. You are definitely on the right road!

Comments

[Wally Bock]

Something is amiss here. Unless I misunderstand, you cannot file for backruptcy on a single credit card. You can file for bankruptcy or not, but it will involve all of your financial transactions. I presume you mean that you are going to default on your payments on that card.

I'm not sure how you can have a credit card that is so out of control and still have a 700+ credit score. But if you do, why aren't you simply paying down the credit card?

Depending on your job at the bank, your employer may be very interested in either a default or bankruptcy. You should check your employment agreement, in fact, because you may be required to report it.

[Rachel - I Hate HR]

I would speak to a financial adviser. I don't think 30K is worth ruining the great credit score you have.

[Lisa Rosendahl]

@Wally and @ Rachel - great job filling in the blanks - for distinguishing between default and bankruptcy and highlighting the value of the credit rating. Thanks!

[Charlene]

Hi everyone,
Thanks for your quick comments! Sounds like there are a few more questions so I'll clarify a bit: I have 30k in TOTAL card debt. Only about 9k is from my actual employer. So to answer Wally's comment, I'm filing on everything. And yes, my credit score is between 680-700 depending on which credit bureau you pull. I imagine the score is so high because I have no slow pays and I have a credit history spanning over 15 years.
Regarding trying to speak with my bank's credit card department-I have done this. Essentially, they will not work with me. Additionally, I had an account with the bank prior to my employment with them. Therefore, they may not even be aware that I am an employee.
I hope that helps to clarify some things. Please feel free to comment from here.
Thanks,