The collapse of the Investment Banking Firm, Bear Stearns will cause massive lay-offs. How many is not yet known, but it could well be into the neighborhood of 12,000 or more, currently it appears they have somewhere just over 14,000 employees, but of course, they will no longer be needed, and looks as if their 401Ks may be completely depleted. Many of the Bear Stearns employees, will be laid off or terminated and that means a huge hit to the dismal job figures for the next quarter in the US economy, however the real pain will be to those employees who lose their jobs and will most likely be forced into foreclosure and bankruptcy.
What tips can we give those laid off Bear Stearns Employees who will be forced into bankruptcy? Well, first they need to get the proper paper work secured by a competent New York Attorney, and perhaps they can get a group discount as so many will be in the very same boat. Some of these employees will be left in a similar situation as those who were left in the wake Enron, as those at the top continued to water ski, while they treaded water. A New York style bankruptcy for a high-paid Bear Stearns employee could run as high as $8,000 to $30,000 and they will most likely need the best possible lawyer to help them through this troubling time.
Since, 30% of Bear Stearns stock is owned by its employees, and since that stock is now worthless, some of these employees are literally wiped out completely and will have no choice but personal bankruptcy. It is therefore important that they take immediate stock of all their personal assets, tax paper work, property assessments at the time of the collapse and what is left if anything of their 401K or stock portfolios. That is the advice that Wall Street Lawyers are giving today in the New York Times and that sounds about right to me.