Discuss the below:
When individuals find that the financial circumstances in their lives have gotten unmanageable and debts far exceed income, one option that they may select is filing for personal bankruptcy. Although this may temporarily help with situation, there are also real, long-lasting consequences to filing for bankruptcy that also need to be considered.
Consider the following scenario:
Mary is a 30-year-old divorced woman. She got married at the age of 25, was married for approximately 4 years, and currently has a 3-year-old child. Mary is a financial analyst who earns approximately $60,000 per year. She has a combination of loans, credit card debt, and medical bills totaling $88,000. Her assets are worth $24,000.
After reviewing this information, respond to the following:
In general, what options are available to an individual in filing bankruptcy?
What might affect the availability of these options for Mary?
What other factors might Mary want to consider in making her decision to file bankruptcy?
What recommendation would you make to Mary and why?