A bankruptcy doesn’t necessarily damage her credibility (there’s a lot of that going around these days); I would be much more concerned with the “number of eviction notices” she received — that, and the previous sexual harassment case that was settled. There’s a pattern here.
That worked out for both parties, she was gone and the company was satisfied in paying her the disability payments which saved us from firing her then having to deal with the EEOC, the NAACP and lawyers.