There are many reasons why Americans avoid filing bankruptcy immediately. Most people delay filing to the point of further damage to their finances. When pondering the subject it seems counterproductive of how these people continue making minimum payments on their credit cards when they know that a bankruptcy filing is the only way out. The terms that come to mind, “Robbing Peter to pay Paul” and “Kicking the can down the road” become a reality. After discussing the matter with a bankruptcy attorney, I came to the conclusion that it was pride that was keeping these individuals from making a good financial decision. Pride is a powerful emotion that makes us do foolish things even to the extent of our own demise. I don’t know what people are thinking, they should be consulting a bankruptcy attorney, but instead they are writing out checks to continue making payments on accounts that will never be paid off.
Over the years, the credit industry has done a good job giving bankruptcy an ugly stigma. It’s initially seen firsthand with debt collectors and how they speak to consumers. Initially, they will act understanding to one’s situation and try and be friend the debtor. When casual conversation turns towards bankruptcy, the debtor will be told that they will never be able to have credit again if they file for bankruptcy. Some of the creditors become much more aggressive telling the debtors that they can be imprisoned for not paying their bills. All of these lies have been told for so many years, many people believe them. They really should fall in the myths and legends category and be forgotten. If creditors can make an individual feel like a loser, they will be able to get them to continue sending payments until there’s no money left. After speaking with a bankruptcy attorney and filing bankruptcy, most individuals feel ripped off and deceived by their creditors.
. Congress created bankruptcy to help good hard-working Americans have a way out of uncontrollable debt. Most people who file for bankruptcy couldn’t foresee what was coming when the financial crisis hit. Some are hit with natural disasters, divorce, unemployment or a medical illness. Having the ability to eliminate debt is the only saving grace that keeps our great country moving. Capitalism would not survive without the ability to file for bankruptcy. There would be no entrepreneurs as no one would be willing to take the risk on a dream if they didn’t have a way out. Just ask a bankruptcy attorney and they will tell you the only thing post-bankruptcy filers wish they could change was that they should have filed sooner.