In hind sight, was bankruptcy the correct alternative for us?

March 13th, 2006 by Questions

My husband and I went bankrupt nearly 2 years ago and were released in March of 2005. When we went for our initial consultation we felt that we would probably be making a proposal to repay our debt. We were dumb struck when we were told that we had no option but to declare bankruptcy. We did not seek out a second opinion because we went in uneducated about our rights and options. We were stupid. We thought that we would be advise on our options. We now, and even then, often feel as if we were pushed into declaring bankruptcy. Why do trustee’s recommend bankruptcy over other options and what is the dividing line between a proposal and bankruptcy? Do trustee’s explain all bankruptcy alternatives?


One Response to “In hind sight, was bankruptcy the correct alternative for us?”

, A licensed trustee said:

As part of the assessment process trustees are required to discuss with you the various options available to resolve your financial difficulties. These include debt consolidation, credit counseling, proposals and bankruptcy.

It is not the trustee’s responsibility to recommend a solution – we present options and describe the benefits and consequences of each of the choices. The final decision rests with the individual.

That being said, part of the process of reviewing your options includes a detailed look at your monthly income and expenses (your budget). While the trustee will talk about a consolidation loan as a possible solution, many people simply can’t afford one. The same is true about credit counseling and even proposals. There are times when bankruptcy seems like the only option simply because there are good and proper reasons why the other solutions won’t work.

If you have a specific complaint against a trustee you should contact the nearest Office of the Superintendent of Bankruptcy – you can find them easily on the web.

Before you do, try and remember how you felt before you filed your assignment and talked to your trustee. Now that the bankruptcy is done and gone it is easy to forget the pressure and anxiety you were feeling. I am not suggesting that your concerns aren’t valid, I am simply pointing out that it is difficult to re-assess two years later why you made the decision that you did.

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