To many, filing for bankruptcy is an admission of financial hardship and failure. Even when it may be a necessary part of their financial recovery, some do their best to avoid it, which can be a costly mistake. The current health crisis has pushed many consumers to both extremes. Individuals have either recognized their financial struggles and immediately filed for bankruptcy, or they are choosing to wait it out in the hopes their finances will improve with a recovering economy. Below, we outline some of the reasons why waiting to file for bankruptcy may not be in your best interest.
Your Debts Don’t Stop
Just because you know you are going to take care of your debts later, doesn’t keep them from piling up in the meantime. In giving your debts more time to multiply, you may only be making them more difficult to manage later down the line.
Here are some statistics to keep in mind:
- Those who wait long periods of time to file have half of the median assets compared to other debtors who didn’t wait.
- The median debt-to-income ratio of long-time strugglers is over 40% higher than other debtors
- Around 50% of those who wait long periods of time face debt collection lawsuits, compared to 35% of debtors.
You May Risk Repossession
Choosing to wait on filing for bankruptcy may also put you at risk for repossession of property such as your car or the foreclosure of your home. Filing for bankruptcy before these issues arise has the ability to stop these actions from being taken by creditors and keep your property in your possession.
Contact Our Southbury Bankruptcy Team Today
We understand the stresses that can come with finances. Using our experienced and compassionate services, we can help you gain your financial independence in a way that truly works best for you.
If you are looking for ways to resolve your financial issues, contact us today through our website or give us a call at (203) 774-3332 for your free case evaluation!