Why do people prolong filing for bankruptcy?

Tuesday, October 30, 2018 - 14:13

Bankruptcy


You could suffer under a mountain of debt for a decade, two decades or an entire lifetime, all while barely scraping by to make your financial ends meet. Or, you could file bankruptcy and get your debt problems in order relatively quickly. If you are struggling with any of the scenarios I mentioned in my previous post, there's literally no reason to prolong bankruptcy any longer. You may have everything to gain by filing for bankruptcy right now.

Nevertheless, if you're like most Canadians who are suffering from debt problems, you will probably delay filing for bankruptcy until the last possible moment. Here are two reasons why people tend to wait longer than they should to file for bankruptcy:

The negative stigma that bankruptcy entails: Most people do not want to submit to the bankruptcy process because they're ashamed to admit that they're suffering from financial problems. However, it's important to put the issue into perspective. We are not always equipped to navigate the financial complexities presented by life. Our debt problems and the bankruptcy process should be viewed as a teaching tool that shows us how we can improve. In fact, one of the best and fastest ways to improve financially is to complete the bankruptcy process and get yourself back on firm financial feet again.

Bankruptcy takes too long: If one were to consider how long it will take to pay off a maxed-out credit card compared to completing bankruptcy, it's easy to see that bankruptcy is a much faster way of resolving debt. Bankruptcy will reduce your monthly financial obligations dramatically by requiring you to pay only one monthly payment that you can afford for a short period of time.

So it's easy to see that even though there is a stigma around bankruptcy, it probably is still the best option for you if you've been struggling financially for a long period of time. Don't delay. Contact our office today for a free, no-obligation consultation. We will review all options with you and come up with the best one for your situation.