Originally appearing on http://centraltexasbankruptcy.com/why-file-for-bankruptcy, this post details the reasons why people hold off on filing bankruptcy. Chief among those reasons is the social stigma facing debtors who resort to bankruptcy. Often these debtors believe they will be labeled as “economic failures” among their piers, or a as one who has “cheated” their creditors. In truth, bankruptcy is a legitimate and legal process for achieving debt relief, and the income limitations for chapter 7 bankruptcy ensure that only truly indigent debtors can expeditiously eliminate their liability for unsecured debts.
When financial troubles become a serious problem, most people hesitate to consider bankruptcy as a possible solution for a variety of reasons. For some, it is the social stigma attached to filing for bankruptcy that causes them to hesitate. For others, concerns about how bankruptcy will impact their future ability to finance purchases and/or how a bankruptcy filing will affect their credit rating cause them to avoid considering bankruptcy as an option. In the end, many of these people do end up filing bankruptcy but not before wasting valuable time and money first. If you are facing financial problems, you owe it to yourself and your family to consider bankruptcy now so you can avoid making these mistakes. Why file for bankruptcy? There are a number of good reasons once you understand more about the process and the benefits. Bankruptcy is a legal, and legitimate, option for debtors who are facing insurmountable…
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