Filing bankruptcy should only be done after careful thought, consideration, and with the advice of an experienced bankruptcy attorney. Once it is decided that bankruptcy is the right choice, putting it off could be costing you thousands of dollars.

I met with a client many years ago for a bankruptcy consult. After exploring all her options, she decided that filing Chapter 7 was the best way to handle her debts. She was making minimum monthly credit card payments of $650. There was no legal reason to delay filing, and she had funds available to pay for the bankruptcy. We scheduled time to sign the papers. She did not provide all the documents necessary to file, and constantly rescheduled her appointment to review and sign the bankruptcy paperwork. We stayed in contact with her periodically, and addressed all her concerns, but she just would not finalize the filing.

After 29 months, she came in and finalized the chapter 7 filing. During the delay she continued to pay minimum credit card payments because she did not want to be sued, and she intended to file “right away”. She never realized how time quickly passed. Her credit card debts were basically unchanged since she paid minimum payments. The saddest takeaway from this story is she wasted $18,850 by not filing right away. That money could have been used to buy a new car, fund her child’s college fund, or to pay off her 401k loans.

Filing bankruptcy is an uncomfortable event for many people. It is easier for them to delay because they are used to being in debt, they adjusted their lives to being in debt, and have convinced themselves, at least subconsciously, that changing their financial direction for the better is more painful and inconvenient than keeping the status quo.

Please understand that if you or anyone else has these concerns, we can help you work through them.