Adam Law Group Blog

Common Reasons Why People do Not File for Bankruptcy

 

No matter if it is a Chapter 7 bankruptcy or a debt settlement, any option to rebuild your credit will be dependent on your ability to learn about your available options and take the appropriate strategy. If you fail to take any action, there is a great risk that you will fall further behind on debt repayment. 

One of the many challenges presented by options to rebuild your credit history is recognizing and overcoming some of the most common reasons that prevent people from getting out of debt.

Emotions

From embarrassment to stress, emotions can prevent a person from filing for bankruptcy. Instead of dealing with these emotions, some people prefer to ignore them and hope that financial troubles and overwhelming debt will go away on their own.

Family Issues

While some families help in handling the numerous challenges presented by debt, other families provide a number of challenges in navigating bankruptcy issues. 

In many situations, it is a wise idea to avoid any advice or opinions about bankruptcy that your family gives you. Instead, a bankruptcy attorney can provide you with a much better understanding about the process. 

Fear

Many people aim to pay off their debts as they become due. In the situation in which a debt becomes due and a person cannot pay it, it is common for the person to feel fear and uncertainty. This fear of bankruptcy can end up becoming so severe that a person is left uncertain about how to act or what to do to pay off debts.

Procrastination

To resolve credit issues and obtain the opportunity to rebuild credit, a person must put in the necessary effort to file for bankruptcy. Instead, some people procrastinate taking the steps necessary to rebuild their financial future and instead do nothing. 

Once many people realize how painless and advantageous bankruptcy can be, they find that they are ready to take the steps necessary to rebuild their credit history.

Financial Barriers

Because people with debt issues are already experiencing difficulty paying their bills, some people hesitate to file for bankruptcy for fear that this will only result in additional debt. While it is true that filing for bankruptcy is not free, paying the small fees associated with this process offers the opportunity to rebuild your credit history and get a fresh start, which is most often worth every penny.

Not Knowing What to do

If you have not sought out professional help with resolving your debt, then you may not understand how to proceed. Perhaps you have spoken with a bankruptcy attorney and are still confused about the process. 

These uncertainties can be so severe that they even prevent you from filing for bankruptcy or doing what is necessary to rebuild your credit score. One of the best ways to resolve these uncertainties is to speak about the bankruptcy process with an experienced attorney.

Speak with an Experienced Bankruptcy Attorney

For many people, the bankruptcy process is an overwhelming and uncertain process. If you need the assistance of an experienced attorney to help you through this difficult time, do not hesitate to contact the Adam Law Group today to schedule a free initial consultation.