[MzMoe]

HELLO MMM'S,
I NEED SOME ADVICE...I RECENTLY WAS LAID OFF FROM MY JOB OF 12YRS AS AN OFC MGR, AND I WANTED TO KNOW WOULD IT BE A GOOD TIME TO FILE FOR BANKRUPTCY, TO ASSIST IN CLEARING SOME OF MY DEBTS?

[Suze Orman]

MzMoe, on 08 November 2010 - 08:06 AM, said:

HELLO MMM'S,
I NEED SOME ADVICE...I RECENTLY WAS LAID OFF FROM MY JOB OF 12YRS AS AN OFC MGR, AND I WANTED TO KNOW WOULD IT BE A GOOD TIME TO FILE FOR BANKRUPTCY, TO ASSIST IN CLEARING SOME OF MY DEBTS?

Hey MzMoe- it is SUZE- listen girlfriend claiming BK is something you need to think about twice- for if you do it now you cannot do it again for six years- also it will seriously ruin your FICO score which means everything is effected especially YOU getting another job; It is possible that when you go to get another job and they see that you claimed BK that might be a good enough reason for them NOT to hire you. So if I were you - I would NOT and I repeat NOT claim BK right now unless it is a must. You are an office manager- most likely you will want to be an office manager again- think about that- if you cannot manage your money can you manage an office. DONT DO IT NOT NOW

[Eva Rosenberg]

Dear MZMoe,

If you were just laid off, this is way too soon to be looking at bankruptcy.

Certainly, you filed for unemployment. That will tide you over, a little.
But not much - certainly not if you have debt.

If you've held the same job for 12 years, you will look good to new employers.
This is a good time to do two things:

1) Think about what you want to do in the future.
Perhaps this is a good time to re-think your career options.
Perhaps this is the time to start thinking about starting a business?
What do you want to do when you grow up?

2) Time to update your resume.
Get some help from your old boss or other department managers.
Perhaps talking to him or her, you will get ideas about what they thought you did really well -
and who knows, staying in touch, perhaps they might find a way to hire you on a freelance basis to help out a bit?
Or they might be able to introduce you to other job opportunities.

Suze is right.
At this moment, you have a good reputation.

Don't blow it.

[MzMoe]

THANKS SUZE & EVA I WILL DEFINITELY TAKE EACH OF YOUR ADVICE...IT'S BEEN TWO WEEKS SINCE I'VE BEEN LAID OFF FROM WORK AND I'M GOING THROUGH A PHASE WHERE I DON'T KNOW WHAT DIRECTION TO GO...I'VE BEEN GIVEN A SEVERANCE PAYMENT OF OVER $20,000,AND WOULD LIKE TO KNOW WHERE/WHAT IS THE BEST WAY TO INVEST TO MAKE THAT MONEY GROW AT THIS POINT.

[Eva Rosenberg]

Hi Mz Moe,

You're in good shape then.

That money will be needed to live on.

So, unless your credit card interest is high, do not use all that money to pay off your credit cards.
This is a good time, while credit is still good - to move your debt to 0% cards.
You can get that rate for 6-12 months and it will cost you about 3% cash advance fee.

Invest the money in something secure and liquid.
Perhaps 3-month CDs at your bank.
You will need to pull cash out to supplement your unemployment income
until you find a replacement job.

This will also give you time to decide if you want to start a business.
Start exploring that option.

Good luck!

Hugs
Eva