Personal Debt Problems
The financial problems of an employer often have knock on effects to the employees. Unexpected redundancy, a delay in receiving wages or a combination of these factors may contribute to personal problems.
There are a few things that should be considered if an employee's circumstances are significantly affected by the insolvency of an employer:
Consider if you can save costs and reduce your expenditure levels
Contact your main creditors such as your mortgage provider to explain the situation. They may be able to assist through offering a payment holiday etc.
Be realistic - do you just needs some extra time to pay off your debts or will you be unable to repay your debts in full?
Consider all of your options. The insolvency options are outlined in the general section of this site, other advice can be obtained from Consumer Credit Counselling Service.
Personal debt problems resulting from the insolvency of the employer are not uncommon and banks etc. are used to dealing with and often help in such circumstances. If your debts are out of control then there are many parties that can provide professional advice in order to deal with the problem.
Deal with any problems you have as soon as possible as they can often be resolved. Ignoring the problem typically makes matters worse.
