There are times when bankruptcy truly is the best option available. If you and your Trustee have reached the decision that bankruptcy is the right solution for you, then rest assured that you are on the right track to financial freedom.
Benefits of Bankruptcy
The decision to declare bankruptcy brings with it a number of benefits:
- Freezing of interest rates on loans and credit cards
- Putting an end to creditor calls at home and at work
- Consolidation of Debt
- Terminating wage garnishment
Your trustee will handle all aspects of the bankruptcy process on your behalf.
- Drafting legal documentation
- Dealing with creditors
- Setting personal budget and payment schedule
- Distributing assets
Responsibilities of Bankruptcy
While the declaration of personal bankruptcy can often be the right choice for those with overwhelming debt, there are some concerns that your Trustee will want you to know.
- Your credit score will be impacted by your decision to legally eliminate your debts, and you will have to exercise patience and diligence in rebuilding this rating. It will take some time, but with a fresh start, you are on your way to financial independence.
- A loss of financial flexibility is often the most challenging aspect of declaring bankruptcy. Your Trustee will prepare a budget and use your income to ensure that your obligations are met. This means that until you are able to discharge your bankruptcy, you will need to live within these means in order to improve your financial situation.
- Some debts, such as alimony and student loans, cannot be included in your bankruptcy proposal. Your Trustee can help you to determine if any of these situations would apply to you, and if necessary, will help you to develop a debt consolidation plan to address these concerns.