How Can Waiting To File Your Bankruptcy Can Hurt You?
Filing for bankruptcy is often seen as an admission of personal and financial failure. Many people try hard to avoid it, but they end up paying the price for waiting.
The longer people wait to file bankruptcy, the more they struggle, according to a 2018 law review study.
If a person puts off the choice to file for bankruptcy, the damage can get much worse. It’s far better to schedule to talk to a lawyer immediately, even if you don’t file for bankruptcy right away.
There are many different reasons why filing for bankruptcy is important to do in a timely fashion rather than waiting.
Many people who start to feel the pressure are going through challenges like debt collection lawsuits, asset depletion, or even missing out on basic expenses like groceries. This can happen for years before a person finally feels confident about filing bankruptcy.
One study found that 66% of respondents were what is known as “long strugglers”, or those people who live in the stress for two years or beyond.
While it might be hard to confront the reality of the situations, the financial situation for the filer gets worse the longer they wait.
The more severe the financial situation when the person finally files, the harder it can be for them to get back on track post-bankruptcy. Whenever a person wants to feel stress surrounding their financial situation, it’s time to speak to an attorney.
Here are some ways to decide whether or not bankruptcy is for you at this point in time:
- Your debts represent greater than 40% of your income.
- You’re using one form of debt to pay off other ones.
- Your debts are those that could be eliminated in bankruptcy like credit cards, personal loans, and medical bills.
- You’re giving up essentials.
An attorney can help you understand whether Chapter 7 of Chapter 13 is right for you. If you’re already in a difficult financial situation, a lawyer is here to advise you about what to expect and how to best approach it.
Once you file for bankruptcy, you can get your life back on track. As soon as you file, you can look forward to a better future for your finances. When you begin to rebuild your credit and chart a path into better outcomes, your stress will decrease a great deal.