Unfortunately because of the stigma still attached to filing for Chapter 7 or Chapter 13 bankruptcy many people put off taking an honest look at the financial circumstances until it is too late. Many debtors who are good candidates for a Chapter 13 bankruptcy wait as much as 5 years before sitting with a bankruptcy attorney and discussing their options.
The reason? They want to avoid bankruptcy; but unfortunately, they are only delaying bankruptcy and making matters worst for themselves. When debtors first begin seeing financial trouble, instead of considering their options they do "their best" to handle the situation, which often means accumulating more debt to pay of past debt and digging themselves deeper into the hole.
Others exhaust all of their savings, retirement accounts, drop health insurance and life insurance plans, all in the name of paying off debt. And many others go even further, facing homelessness because they've allowed their mortgage payments to become so delinquent that they have little chance of catching up.
The bankruptcy laws were created to help debtors get a fresh start. If you are a debtor facing crushing debt, don't delay taking action now. As soon as you see that you aren't able to make your payments over a period of time, speak to a bankruptcy attorney so that you can know your options. The bankruptcy attorney can help you to take that first step to getting on the right financial footing.
The bankruptcy attorney may recommend Chapter 13, Chapter 7 or even debt counseling if he/she believes it's a good fit for you. Just don't delay any longer.