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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11882
Experience:  JD, MBA
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Hi, a quick question. can a bank employee go for having her/his

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Hi, a quick question. can a bank employee go for having her/his house foreclosed and also go for bankruptcy?
Hi. I'm not sure I'm following your question. Are you asking if a bank employee can be foreclosed upon, and if he can file for bankruptcy protection? If so, what facts in your situation leads you to believe that a bank employee may be treated differently than other people?

Thanks.
Customer: replied 6 years ago.

The father of the bank employee lost his job and so the bank employee was shouldering the mortgage. He is in a bank in Illinois, Chicago suburb. Because he has a car payment going on, the bank is not willing to clear the whole amount under short sale. So if the only option is to tell the bank that they can either accept the short sale in full settlement of both the mortgage and equity, or you can go for foreclosure. In the event the loan balance comes on the bank employee, he is suggested by several friends to go for bankruptcy. But some say, as a bank employee, one cannot opt for bankruptcy or foreclosure. Please advice.

Hi again. Thanks for the additional information.

First, the bank employee is not liable for his father’s debts unless the bank employee personally guaranteed the loan (i.e. co-signed). Second, a consumer does not opt for foreclosure. Foreclosure is the lender’s remedy if the loan is not paid. Therefore, it’s all up to the lender, but the lender will certainly want to foreclose if it’s not getting paid since that’s the only way it can forcefully sell the property to recoup its money. Last, the bank employee can file for bankruptcy if he wants to … there’s nothing in the law that would prevent that.

Therefore, if the bank employee did co-sign the loan, and the lender forecloses and wants to go after the bank employee for a deficiency, then a bankruptcy may be the best course of action. I will point out, however, that some employers don’t like to hire employees who file for bankruptcy because it shows that they may be irresponsible with money … and that could be important to a bank.

Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.

If the information that I provided is helpful, then please remember to click the green accept button so that I will receive credit and compensation for my time. Positive feedback is always appreciated as well. Thank you and good luck!

DISCLAIMER: Please be aware that only an attorney licensed in your state is authorized to advise you in legal matters, and that the limitations of this setting may prevent your legal issues from being thoroughly addressed. Accordingly, please understand that (1) by answering your question(s) I am not acting as your attorney, (2) my answer(s) should be construed as general information only, and (3) our discussion is not an adequate substitute for an in-person consultation with an attorney.

Customer: replied 6 years ago.

Yes, the bank employee is a co signer. The father lost his job a year ago. The bank employee is victim to situations. He is a responsible person and in that circumstances, Please give me a final say.

1. The bank employee is beyond his means to pay the mortgage

2. Whether foreclosure and bankruptcy will effect his employment.

 

 

 

Customer: replied 6 years ago.

Just awaiting final answer.

 

The bank employee may file for bankruptcy if he chooses. His status as a bank employee is not an issue. But, his employer may fire him for it. I can't say whether that would happen since it's up to the bank, but it's a possibility.

If the information that I provided is helpful, then please remember to click the green accept button so that I will receive credit and compensation for my time. Positive feedback is always appreciated as well. Thank you and good luck!

DISCLAIMER: Please be aware that only an attorney licensed in your state is authorized to advise you in legal matters, and that the limitations of this setting may prevent your legal issues from being thoroughly addressed. Accordingly, please understand that (1) by answering your question(s) I am not acting as your attorney, (2) my answer(s) should be construed as general information only, and (3) our discussion is not an adequate substitute for an in-person consultation with an attorney.
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