Debtors delay bankruptcy for many reasons and while there may be some legitimate reasons to delay bankruptcy most of them are not legitimate. Below are four bad reasons for delaying bankruptcy.
- You're hoping that you will "come into" some money soon, (new job, salary increase, lotto winning etc.) and that it will be enough to pay off your debts and avoid bankruptcy. The reality is that this may be highly unlikely especially if your financial issues have been prolonged. Debtors considering bankruptcy should give themselves a set amount of time for deliberation. For example, saying to yourself "if things don't turn around in 30 days then I will file bankruptcy" may be a good idea.
- Your family and friends believe that bankruptcy is immoral and that anyone who files bankruptcy is a cheat. Don't listen to them. The truth is that this is your life and unless they have signed a legally binding contract agreeing to repay all of your debts, depending on their opinions when considering bankruptcy could deal a death blow to your finances.
- You are going to work with a debt settlement company to pay off your debts. While there are some debt settlement companies who might be legitimate, many do not deliver on their promises. Creditors are not required to settle or reduce the amount of debt you owe. Only bankruptcy can reduce or discharge debt. And many creditors refuse to work with debt settlement companies.
- You don't have the money to file bankruptcy. It is completely logical and understandable that a debtor struggling financially would believe that they can't afford to file bankruptcy. But in reality, many debtors cannot afford to forego bankruptcy. Many bankruptcy attorneys have payment plans available and some even allow you to use your income tax refund to pay for the costs associated with bankruptcy. It's folly to make assumptions about your ability to pay for bankruptcy before sitting down with a bankruptcy attorney. Many bankruptcy attorneys offer free or low-cost bankruptcy evaluations. Maybe you should consider taking advantage of that opportunity.