One mistake that most individuals make when filing bankruptcy is waiting too long. Historically, the topic of filing bankruptcy has had a stigma and been taboo for most Americans. Most people would like to avoid bankruptcy filing like a plague. The last thing that they want on their financial resume is that they had to file for bankruptcy. I think a lot of this stems from the stigma that has been created over the years. People believe that an individual filing bankruptcy has failed and is a loser. This is far from the truth and goes against the reason of why bankruptcy was created. In fact, a capitalist society would not survive without the ability to file for bankruptcy as a way out of a financial failure. There would be no entrepreneurs, as no one would be willing to take the risk to bring their inventions to market if they had to worry about debtor’s prison or the debt following them for the rest of their life. Many people believe that the stigma that has followed bankruptcy filing in the past was put there by the credit industry. If they can intimidate people into believing that their life will be destroyed by filing bankruptcy, they will be able to keep people in bondage to their debt for the rest of their lives.
What’s interesting is when a corporation files bankruptcy it’s good business, but when an individual does it, they are considered failures. The good news is, this taboo about bankruptcy is fading away. Ever since the financial meltdown back in 2008 the topic of bankruptcy has become very common place. Nowadays, just about everyone in America has a neighbor or someone on their street where their house is in foreclosure and they might be filing bankruptcy also. It doesn’t mean that these folks are bad people, it just means they over extended themselves at a time when the economy took a major dive. With so many people unemployed and considering bankruptcy, it’s becoming easier for people to handle the topic.
Just ask any bankruptcy attorney and they will tell you . Even if you are a person that procrastinates and waits for the last-minute to do everything from your taxes and even all the way down to being late for appointments, this is not something that one should wait on. What most people don’t understand is this can be a very costly mistake. When the finances start falling apart, people should take the time to consult a bankruptcy attorney about their financial situation. At least they will be aware of their options. Why would someone considering Chapter 7 bankruptcy wait when it’s clear that they have no way of paying off these debts. People who wait usually continue paying minimum payments and trying to spread the wealth around amongst the creditors. This is just throwing money away that could be useful in paying the bankruptcy attorney and the bankruptcy court filing fees. After the bankruptcy discharge, most people admit that the only thing that would change about filing bankruptcy is doing it sooner.