The family can call and talk to a professional at the National Problem Gambling Help Line: 1-800-522-4700. In my state counseling is available for free to family/loved ones of the gambler whether the gambler is in counseling/treatment too or not. The people at the help line can tell you what resources are available in your area.
The family really can't tell when the gambler hits rock bottom. Usually only the gambler can tell.
If I had an active gambler in my life I would encourage them to seek help, point out the damage they have done. Provide them with a copy of the GA 20 questions, the help line number and the suicide prevention line number and offer to to take them to a GA meeting, a counseling center for gamblers and a shoulder to cry on along with some other options of something to do besides gamble. I would not pay their bills or loan them money unless they make a plan about how it is NOT going to happen again. (ie quit gambling, get counseling, make a repayment plan.)
Part of the disease of compulsive gambling is magical thinking. Always thinking we are one bet away from the big win that will take care of all our problems, hoping for the ship to come in, the prince to show up and carry us away.
Part of getting away from this disease is growing emotionally enough to end the magical thinking.

I didn’t know I was on the verge of hitting rock bottom until I was there; being an addict I thought I had everything under control despite the fact I knew I was a complusive gambler. It was an ugly time in my life. I thought my secret life was invisible to others. Maybe it was, maybe it wasn’t, but I know I was miserable.
When the banks approach the family members of this addict you know, do the family members know he’s in debt because of complusive gambling? In either case they have the right to question him and they should. He needs to take responsibility for his own actions.

Better him hopeless than being bailed out. Trust me, he will think of it as one of his biggest scores and continue to gamble now that in his mind he is "even". Both Robin and Qwit gave great advice and now the ultimate decision is his. He will eventually get over from being hopeless and hopefully start down the path to recovery. What choice other than that does he really have?

banks go after family members? i didnt know that....i'd let him hit bottom, only way, can't bail him out, worse thing to do....best to you

Thank you all for your advice.

Well the banks are visiting the family, however they are not repaying the bank.
In the meantime the addict is showing a bit of rebellious behavior by saying he can come back to city and get a job only once banks are paid so he is putting the family in a spot instead of accepting his mistake.
Gosh, tough nut to crack.
Family wants to avoid being too harsh with him so he doesn't do something stupid. They are almost losing hope he will recover