If you’re planning on filing for bankruptcy, who do you need? Aside from getting a bankruptcy law specialist in San Diego, you should also consider authorizing a trustee.

Going bankrupt is an event that nobody wishes to experience at any point in their lives. Yet, sometimes, reality is harsh and doesn’t really discriminate between anyone. Sometimes, you can’t avoid going bankrupt. For anyone suffering through it, bankruptcy is the biggest financial challenge they can face—this is especially the case if you go bankrupt suddenly without any hint of warning. 

That’s just how life goes sometimes. Somewhere out there, someone flips a coin, and—poof—you don’t even know what’s happening.

That’s why, for a lot of folks going through bankruptcy, it can be very disorientating and confusing. I know this because I had a relative who had to file for bankruptcy once. It was at a time when I couldn’t do anything but be with them, providing emotional and moral support.

I saw firsthand how terrifyingly labyrinthine it is to file for bankruptcy.

For some reason or another, my relative was overwhelmed with debts and bills. It became so unbearable that there eventually came a time when she could no longer keep up with her payments.

Eventually, without having any other recourse, she could only file for bankruptcy. There’s an emotional cost to making this decision that we don’t talk too much about, but for her, it felt like she’d become a failure; she felt like she had let her family down and, most of all, she let herself down.

This is because, aside from the reasons that one is forced to file for bankruptcy, the immediate effects are troubling enough without mentioning long-term outcomes.

Why You Have to Authorize a Trustee

First and foremost, which might be confusing for non-American readers, is that bankruptcy can impact your credit score, making it incredibly difficult to secure credit in the future. A severe loss of assets, such as your car, your home, and whatever else, is also highly probable. This isn’t even to say how the process itself can be quite time-consuming and confusing, requiring tons of paperwork to file and a lot of meetings to attend. Without a helping hand, you’re a fish in a barrel!

Filing for bankruptcy is a challenging decision, and navigating through it all can be a colossal challenge. Since that is the case, it’s important to have someone by your side, a helping hand, and with that, I wouldn’t recommend anything else other than to consider authorizing a trustee to assist you in such a situation. Trust me, it can make all the difference in the world.

During the whole process of bankruptcy, my relative felt lost and confused, like a child who’d been left behind by their parents. She was struggling just to keep her head afloat. We had no clue where to go or what to do. It was then that she learned of authorizing trustees that she got the proper help she needed. It was perhaps the best thing she did.

Her trustee was an expert, a licensed professional who had the experience and the knowledge we needed to properly work through the process. They explained the different types of bankruptcy and helped us understand which suited her situation (it was Chapter 7, by the way). There was also a very lengthy and helpful discussion of what the probable consequences were for filing bankruptcy and the effect it would have on my relative’s finances for the foreseeable future.

The best part of having a trustee was that they often acted as the mediator between my relative and her creditors, negotiating with them to reassure them that my relative could pay back their debts within reason.

It was such a huge relief because it meant that my relative could spend more of her time focusing on how to stand back up financially without having to be overtaken by the anxiety of trying to talk to person after person.

A Helping Hand

When you file for bankruptcy, your assets become part of the bankruptcy estate, and they will all be shared between your creditors. However, some assets are exempted from this. If my relative didn’t have a trustee, I don’t know if she would ever know that. This was especially important because we found out her house was subject to the exemptions, as well as her car.

In addition, the trustee helped her prepare and file all the necessary paperwork, which can be time-consuming and confusing. With their help, she could rest assured that everything was handled correctly. 

Thanks to their help, my relative was able to get back on her feet after bankruptcy and start rebuilding her life.

Are you looking for a bankruptcy law specialist in San Diego? Learn more about The Bankruptcy Professionals through this number: (858) 564-9310.

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