Why You Should Not Wait to File for Personal Bankruptcy


When consumers in Oak Park start having significant difficult paying or their bills while accumulating more debt, the prospect of filing for personal bankruptcy can seem daunting. Some consumers feel ashamed about their financial situation, while others are concerned about the potential credit hit that could result from filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. However, consumers often see less of a hit to their credit than they would expect, and many are able to begin rebuilding their credit soon after filing for bankruptcy. Even more importantly, as a recent article in The Coalfield Progress argues, waiting to file for bankruptcy can hurt you even more in the long run.
If you are thinking about filing for bankruptcy but continue putting it off—all while your debt load is becoming more and more unmanageable—it is important to talk with an Oak Park consumer bankruptcy lawyer as soon as you can.
Waiting to File for Bankruptcy Usually Means More Struggle
As the article explains, a recent law review study concluded that “the longer people wait to file bankruptcy, the more they struggle.” To be sure, “by the time they declare bankruptcy, their well-being and financial life are damaged, undermining the fresh start the legal tool offers them.” In short, when an individual or a couple could really benefit from personal bankruptcy, waiting to file often means that there will be greater financial struggle. That law review article, “Life in the Sweatbox,” is forthcoming in the Notre Dame Law Review.
What is a “life in the sweatbox”? As the authors of the article clarify, the period of time before an individual files for bankruptcy—but needs bankruptcy protection in order to get back on track—often is known as the “financial sweatbox.” The authors of the article relied on information from the Consumer Bankruptcy Project and determined that more people are living in the “sweatbox” for longer periods of time than they were previously. For those individuals, bankruptcy might not be quite as helpful as it could have been had they simply decided to file earlier.
Long Strugglers and the Difficulty of Time in the Sweatbox
Almost everyone who waits to file for bankruptcy struggles in some capacity, but some experience this struggle more than others. In particular, the authors of the article identify a group known as “long strugglers,” or “those people who struggle for more than two years before filing bankruptcy.” For those individuals, “their time in the sweatbox is particularly damaging.” For example, long strugglers often suffer stress and anxiety surrounding the following:
  • Constant calls from debt collectors;
  • Living without healthcare;
  • Living without utilities in their home;
  • Living without adequate food and nutrition; and
  • Losing their homes to foreclosure.
The takeaway message is this: If you are struggling financially and are considering bankruptcy, do not wait to talk to a consumer protection advocate about your options. Filing for bankruptcy sooner can help you to get the fresh start you need without sustaining further damage to your financial and physical health.
Contact a Bankruptcy Lawyer in Oak Park
To learn more about how bankruptcy can help, you should reach out to a bankruptcy attorney in Oak Park. An advocate at our firm can discuss your options with you today. Contact the Emerson Law Firm for more information.
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