When you are in financial crisis there are many options for you to choose from like: loan consolidation, debt negotiation, consumer proposal and bankruptcy.
In a bankruptcy you may lose your assets. In fact, many who filed for bankruptcies lost their houses, cars, investments and other assets that they did not expect to happen.
Practically, in a bankruptcy, all your unsecure debts like: credit cards and unsecure line of credits would go away. They will be wiped out and you no longer pay your creditors.
To protect the creditors from total loss of the amount lent to debtors, the bankruptcy law requires a bankruptcy trustee to take over the assets of a bankrupt person in-trust on behalf of the creditors.
Said assets would be sold and the proceeds would be proportionately distributed to your creditors.
When you go to a bankruptcy trustee, do not expect an advice that would be detrimental to creditors for they are there to protect creditors’ interest to insure only people who are truly in financial distress would file bankruptcy.
When bankruptcy trustees take over your assets, they are only doing their duties and responsibilities under the law, or, they may lose their license to operate their business.
In view of the forgoing, bankruptcy is not a solution to all financial problems. It is usually a last resort. If you have assets like: savings, investments, equity of your house, car, and other assets not exempt from bankruptcy, you should consider other options.
If you have assets like the above mentioned, it would be prudent for you to seek a sound advice from a financial professional not necessarily a bankruptcy trustee to discuss your options to avoid losing your assets you love to keep.
Bankruptcy requires careful planning for once you filed for bankruptcy you cannot withdraw from it.