• 10
  • March
    2011

Filing for bankruptcy protection is never an easy decision. The individuals who have no choice but to file for Chapter 7 or Chapter 13 bankruptcy protection should at least be able to count on bankruptcy officials to do their jobs properly and ethically.

Unfortunately, that doesn't always happen.

A case in South Florida is evidence of this. According to a recent story in the South Florida Business Journal, a bankruptcy trustee in the state has agreed to plead guilty to fraud. The trustee reportedly had to resign her post amid allegations that she misappropriated at least $16 million in a number of bankruptcy cases. According to charges filed against the trustee, these actions resulted in about $2.4 million in losses to the parties in the cases.

The trustee is charged with using this money for her own personal use and reportedly intends to plead guilty to the fraud. Her actions prove how important it is to find trustworthy legal help when considering your debt-relief options.

Hopefully, this individual case of a court-appointed bankruptcy official acting improperly won't dissuade individuals from filing for either Chapter 7 or Chapter 13 bankruptcy protection. Filing is no easy decision as it is. It takes a lot of courage to file. People's credit scores take a big hit, making it difficult to borrow money or secure credit.

In certain instances, however, bankruptcy is definitely the best option for consumers. It provides them with the chance to make a fresh financial start. With careful effort, bankruptcy filers can get to a point where their financial struggles are completely behind them and they are living a financially secure life without the overwhelming stress of excessive debt.

Source

South Florida Business Journal: "Attorney: Tolz 'acknowledges her errors,'" Paul Brinkmann, 4 Mar. 2011