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Who is going to benefit the most from your bankruptcy
I am having trouble keeping up with my bill payments and the situation is getting so bad that the creditors have started calling my boss. I am considering filing for bankruptcy, but I am confused as to how it benefits anyone.
This is a question that was sent via email last week. The person who wrote is obviously concerned about the consequences of declaring bankruptcy. Fortunately, there are many benefits to bankruptcy and the person who benefits the most is you, the person in financial distress.
As the person filing bankruptcy, you may be in dire need of help. Bankruptcy was established by the federal government to help people like you who may need a resolution to their situation, but are unable to find one by themselves. Bankruptcy may just be the solution to your out-of-control financial problems.
When you file for bankruptcy, you receive the greatest benefit because you get relief from your unsecured debt. Bankruptcy eliminates your unsecured debt and essentially resets your credit, giving you the chance of a fresh start. Bankruptcy should be the beginning of a healthy financial future.
You might wonder, though, why creditors go for this arrangement. In the case of a bankruptcy, assets from the debtor are distributed proportionally among all parties. Bankruptcy laws ensure that this process is fair and structured, so that every creditor receives their portion based on the credit they provided.
Bankruptcy is not the first solution that people should consider. It will make it more difficult for you to borrow money in the future, and creditors don’t generally receive all the money that they loaned to you. It is a serious consideration that should be discussed with a licensed bankruptcy trustee who can inform you of all your options, rights, and responsibilities.
For a free consultation with a licensed trustee, call me at 310-PLAN. You can also email me any questions you may have. If you make a plan now to deal with your out-of-control debt, it will help secure a healthy financial future. Call me to get started.
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